Malaysia is a country blessed with both urban & industrial marvels. From the heights of the PETRONAS Towers to the beautiful natural landscapes, Malaysia has got it all! In addition, Malaysia is a haven for someone who wants to venture into business. The country has a stable and robust economy & rest assured; businesses have room to thrive in the nation. Malaysia is also a politically stable country hence, it is favorable to the economy thereby, making room for Companies to be successful.
First of all, congratulations on opening a new business in Malaysia! We are sure you considered all these matters before you decided to open up a company in Malaysia. As a new entrepreneur, you might face some challenges at the very beginning. But fear not, every challenge will only make you and your company stronger.
This may be your first company or you may be a well-experienced businessman. Still, as you already know, learning never stops. We have in this article, come up with 7 helpful advice for new business founders in Malaysia.
1. The right mindset
As a new investor, you must have many insecurities about how your business will turn out. Will I make enough profit? Will my business sustain long-term? Well here is the thing. The biggest motivation for you to start a business is your passion for the product or service you are selling. As you know, a business is like rearing a child. You must have enough energy, motivation & perseverance to see it grow. So do not let the fire burn out. Keep working at making it a success.
2. Do not put all eggs in one basket
One fundamental rule in finance is not to invest all your money or time in one place. One may think to devote all your time and savings to the new business. But we advise you not to. Here is why. When you start up a business, you will need to invest cash from time to time, especially at the initial stages your expenditure will be high than income. Thus, it is advisable to have another source of income or to manage your savings accordingly. Hence, if you are employed at present, we suggest you to not give that up. Or not to invest all you have on your business. Always leave room for another option.
3. Ask for help when necessary
This help may come from a family member or a professional or if you are lucky both! You don’t have to feel isolated and alone. There are times that you might want to take some time off or look up to someone for moral support. By having professional help, you can certainly get helpful advice for your new business registration in Malaysia
4. Business Plan
Writing a business plan is the best advice for new business founders in Malaysia. A business plan gives you scope. It analyzes your business & gives you an idea of how your product/service should fit in the market. By analyzing your Strengths, Weaknesses, Opportunities & Threats are you will know how to come up with a strategy to market your business. A business plan also allows you to:
- define your goals,
- give an idea of what and what not will succeed
- what steps to take to be successful
- Management & staff capabilities
- And define your core capabilities
So, a business plan is a piece of important advice for new business founders in Malaysia.
5. Get Professional Help
Ideally, as a new business founder who is hoping to start in Malaysia, you will need professional help in a few areas. If you do not know about analyzing the market, or writing down a business plan & discuss strategy, you will need guidance from a marketing professional. Also, you will need legal advice from a lawyer as there are many legal procedures to follow. Then, you will need to seek Accountants’ expertise to manage your accounts. There are taxes, lease & other legal factors you must consider. By seeking professional help can avoid much confusion.
6. Establish Customer Base
In your business plan, you will figure out who your potential customers are. That way you can pay attention to the ‘niche’ and avoid wasting time and resources. By defining your customer base, you can pay personalized attention to your customers. You may use advertising to take your brand out there.
7. Use digital Marketing
The world is digitalized giving you limitless access around the globe. Use it for the benefit of your business. Digital Marketing is the one valuable factor that differentiates the outdated companies from the new modern ones. Use it! Facebook, Instagram, e-commerce are some digital tools available today.
So, those are our 7 helpful advice for all your new business founders in Malaysia. These are based on real-life experiences of our fellow businessman & research.
We have included the simplified company registration process for your benefit.
As you know, you must follow company registration policies when setting up a business in Malaysia. Business registration in Malaysia is a simple process. You can visit the Registrar of Companies Malaysia website for more details. Visit http://www.ssm.com.my
Here are the steps in Brief:
- Hire company secretary
- Prepare Memorandum of Association & fill necessary forms
- Propose three company names (one will be approved)
- Set up Paid-up capital (MYR5000)
- Government fees (MYR.1010)
- Name approval Fee (MYR. 60)
- Submit papers online (SSM website)
Company Incorporation will take 2 working days.
- Fill the super form (from SSM)
- Prepare board resolution
- Open Bank Account
- Apply for necessary licenses (Halal, signboard, premise)
- Apply for employment pass and hire staff
The start-up of business will be time consuming and expensive. This doesn’t limit to just Malaysia but it is common all over the world. I hope this 7 helpful advice for all your new business founders in Malaysia will serve as a guide to you. You may contact S & F Consulting firm if you need more information. We are happy to help.
Frequently Asked Questions
- What is the required paid-up capital for businesses in Malaysia?
- Initial (RM.3000-4000)
- Joint Venture (RM.350,000)