It’s safe to say starting a company from the ground up can be one of the most terrifying instances any entreprenuer has to face. As far as history depicts back to, Malaysia is known for being the centre of trade. With that in mind, building a company has to be pursued in a way that is not only affective but also profitable. The information stated are in fact to be core points to take note of when one starts a company and are nowhere in order.
1. Determine the Industry Licenses & Requirements.
As Malaysia has developed more restrictions to foreign participation in the past, certain specific industries are still limited or protected due to national policy reasons. Examples of industries which involve specific licences include oil & gas services, land transportation services, wholesale & retail trade, tour operators, franchise and many more.
Generally, it is very important to undertsand all the technicalities of the whole operation. This gives an opportunity to plan the coporate structure as well as working capital when executing a plan. When a person is fully aware of these elements, they are able to measure out a proper time frame and commencement of the business.
2. Survey the best possible Location for to carry out the Business.
The location of a business is just as crucial as the planning involved. Tons of factors have to be included such as the actual town, area, street, and address number, right down to the suite or office lot number.
KL traffic is absolutely a nightmare to be caught in, especially to those companies living in the centre of the commercial hub. Convenience, traffic flow, logistics, transportation, parking, and proximity to various other facilities and amenities have to always be taken account to.
3. Analyse Immigration Permits & Visa’s.
As many have come to understand, Malaysia has a myriad of business opportunities set out by foreign companies/investors. In light of this, there are many different work permits that apply to the respective person. Some may include, Professional Visit Pass, Employee as well as Employment Pass.
In each of these permits, a specific type of requirement is needed to be obtained in order for it to be applicable. These capital requirements may then vary depending on the level of Malaysian equity ownership in the company.
4. Tax Implication & Registration.
Tax Implications may even vary depending on whether one uses a private limited company, limited liability partnership, partnership or sole proprietor. An example of taxes that most businesses will contend with are Income Tax and Goods & Services Tax.
It is especially important to understand and differentiate between all the different types as it allows us to be aware of the situation we are putting ourselves into.
5. Co-working Spaces and Office’s
As of lately co-working spaces have caught the eye of many, may it be our locals or even foreigners. When starting a company, take account on how you intend to run your business model. The respective environment determines how well work productivity will occur.
6. Register/Inquire with Suruhanjaya Syarikat Malaysia.
The Companies Commission of Malaysia (Suruhanjaya Syarikat Malaysia or SSM in Malaysia) is a statutory body which regulates companies and businesses.The main activity of SSM Malaysia is to serve as an agency to incorporate companies and register businesses.
The step-by-step procedures are as follows :
All in all, we must always consider these elements when pursuing a business venture. It is more than viable we take into account little details before executing a major business plans. As the saying goes ‘Rome was not build in a day’, so get up and make your own destiny.
By Rahman, Aisha for Colony