How Has Business Registration Changed in Malaysia (2021)?
Incorporating a business is an essential part of establishing a brand-new business. Company registration in Malaysia is also important to ensure maximum compliance with the legal rules and regulations. There have been some significant changes in the company registration process in Malaysia.
One of the most significant changes made by the Companies Commission of Malaysia (SSM) is that the new registration format must consist of 12-digits for companies, businesses, and Limited Liability Partnership.
1. Growth in Online Businesses
The COVID-19 pandemic has negatively impacted companies, especially small and medium-sized businesses. In order to recover from the massive financial losses and grow their business, many people are moving towards modern online business models. The exponential growth in online businesses in Malaysia is a testament to the fact that such models are helping SMEs keep afloat during the economic crisis.
Statistics also indicate that after the Movement Control Order (MCO) was enforced in March 2020, online trading increased quickly. The number of new companies registering in Malaysia and acting as online businesses also increased in this period. As a result, the company registration process was also made easier and more efficient for people who want to establish online businesses.
2. E-Commerce Industry
The official data collected by SME Corporation Malaysia indicates that the e-commerce participation in SMEs increased by 3% between the period of March and October 2020 compared to the last year.
The government authorities are also encouraging entrepreneurs to adopt a balanced business model that bridges the gap between information and modern technologies so that the best tools and technologies can be used for the growth of Malaysia’s economy, especially the SME sector.
However, this growth is not only limited to the Malaysia company registration process. More and more accounting firms in Malaysia are providing consulting services to help the companies get through the economic crisis and even improve their business processes during this period.
3. Digitalization of Business Operations
Digitalization of essential business operations, like company registration in Malaysia, as well as running a well-established business, is likely to bring a number of benefits to companies as well as the overall economy of the country.
Some experts have also started to call the current economic issues a blessing in disguise because it allows companies to shift towards modern e-commerce solutions that will positively impact economic development. Official statistics show that if more SMEs start doing online business, they will be able to significantly increase their contributions to Malaysia’s GDP.
4. Expectations
It is highly expected that the trend of online business will continue to grow, even after the pandemic is fully over, because a large number of users now prefer online shopping over visiting a traditional brick-and-mortar store.
Such changes can be good for the economy, but companies must be careful while making the changes and adopting suitable strategies to adapt to the current business environment.
5. Changes in Marketing
Online businesses mainly depend on digital marketing, so it has become important for entrepreneurs and marketing teams to become familiar with the best digital marketing practices so that they can attract more customers, especially in the highly competitive e-commerce industry.
Some companies and accounting firms in Malaysia are also offering professional services to help businesses make a positive shift towards online business with proper marketing. Social media platforms, like Facebook and Instagram, play an integral role in marketing products online and reaching a maximum number of potential customers.
In a Nutshell
Malaysia’s business environment has completely changed in 2021 due to the global pandemic. In terms of the Malaysia company registration process, more focus is now placed on the online application, making the process smoother and quicker to encourage more entrepreneurs to start their business.
An easy company registration process means the business owner will not have to worry about incorporating their company. Instead, they can do it quickly and focus on other important business aspects, like marketing.
Similarly, well-established companies have also changed in this unprecedented period because they have now realized the significance of online business operations and digital marketing to reach a wider audience.
Professional accounting firms offer a wide range of services to help entrepreneurs register their companies easily and ensure compliance with the law to keep their businesses functioning efficiently and legally. For more information, feel free to get in touch with us.
