Common Business Startup Questions.

What are the main vehicles used in Malaysia to establish a business?

There are 3 types of business entities one can choose from to start up a business in Malaysia, namely:

  1. Sole proprietorship
  2. Partnership
  3. Companies – Under the Companies Act 2016, a company can be incorporated as:
  • a company limited by shares – the most common type of limited companies. A company having a share capital may be incorporated as a private company (company name ended with the word “Sdn. Bhd.”) or public company (company name ended with the word “Berhad” or “Bhd”);
  • a company limited by guarantees – usually the type of entity used by non-profit organisations such as charitable bodies, foundations etc; or
  • an unlimited company – where no limit placed on the liability of its members and its members may be made personally liable for its debts without limit on their liability.
How to start a business?

Generally, initial steps required to start a business in Malaysia are:

  1. decide the business entity under which your business will be carried out, whether it is partnership or corporation, it is strongly advised to put in place a partnership or shareholders’ agreement regulating the business affairs and the relationship between the partners or shareholders.
  2. Engage a lawyer or company secretary to register the business entity with the SSM.
  3. rent a premise for business operation. Depending on the nature of business in question, this may not be necessary, for instance, e-commerce or online only businesses.
  4. apply for necessary business licence such as the trade and signboard licence from the local council, and any other specific licence depending on the nature of your business. For example, if you wish to run a restaurant business, you may need to apply for HALAL licence for serving “Halal” food or MACP / PPM licence for having live performance of music in your premise etc.
How to register my business?

Sole proprietorship or partnership

You are required to register your business entity at any counter of the SSM or through a lawyer or company secretary.

 

What are the fees required to register my business?

Registration fees of registration of business are: Sole Proprietorship and Partnership

ActivityFee
New RegistrationTrade Name – RM 60 per year
Personal Name – RM 30 per year
Branch(s) – RM 5 per year for each branch
Business UpdatesRM 20
Branch(s) – RM 5 per year for each branch
Business RenewalTrade Name – RM 60 per year
Personal Name – RM 30 per year
Branch(s) – RM5 per year for each branch
Business InformationRM 10.60 (includes 6% GST)

Company

ActivityFee
On an application for the reservation of a nameRM 30

For every application to the Minister under this Act

RM 150

Fees to be paid to the SSM by a company having a share capital:

(i) for registration of a company whose nominal share capital does not exceed RM400,000

RM 1,000
(ii) for registration of a company whose nominal share capital exceeds RM400,000 but does not exceed RM500,000RM 3,000
(iii) for registration of a company whose nominal share capital exceeds RM500,000 but does not exceed RM1 millionRM 5,000
(iv) for registration of a company whose nominal share capital exceeds RM1 million but does not exceed RM5 millionRM 8,000
(v) for registration of a company whose nominal share capital exceeds RM5 million but does not exceed RM10 millionRM 10,000
(vi) for registration of a company whose nominal share capital exceeds RM10 million but does not exceed RM25 millionRM 20,000
(vii) for registration of a company whose nominal share capital exceeds RM25 million but does not exceed RM50 millionRM 40,000
(viii) for registration of a company whose nominal share capital exceeds RM50 million but does not exceed RM100 millionRM 50,000
(ix) for registration of a company whose nominal share capital exceeds RM100 millionRM 70,000

Further Inquiries?
You may contact our panel lawyers/ the author of this article.

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