8 Things to Do Before Setting Up a Company in Malaysia
Malaysia is considered one of the best countries to do business because the rules and regulations in the country are much more relaxed and easier to follow than many other countries. Moreover, the ranking of Malaysia in the World Bank’s Ease of Doing Business also indicates that the country is one of the favourite places of various types of companies.
To start a business in Malaysia, you must be fully familiar with the different aspects of running a business and Malaysian company registration to ensure you complete the entire process efficiently and reliably.
In this article, you will learn the eight things to consider when you are setting up a company in Malaysia:
1. Determine Industry Requirements
Even though most of the industries in Malaysia allow both foreign and local corporations and individuals to establish their businesses, there are still some specific sectors that are limited to the locals due to national security interests. For instance, oil and gas services, warehousing industry, land transportation, and other such industries require special licenses before you can establish your company in Malaysia.
Therefore, it is very important to determine whether you will have to meet any specific conditions to set up a company of your choice in Malaysia and if any restrictions might apply to you. Generally, getting this information is quite easy from the regulatory authorities in Malaysia and their official websites, so you should have no issue in completing this step.
2. Open a Bank Account
It is highly recommended that you open a company bank account at an early stage to deal with different transactions and keep their records efficiently. You should deposit some money in this account and use it for insurance, the company registration fee, and others.
3. Bank Account Documentation
4. Select Business Name
Every business in Malaysia must have a unique name. Besides the legal regulations, you should also consider that a business with an interesting and engaging name can quickly establish its brand and attract more people.
There are some online resources where you can run a potential name through the Malaysian companies’ database and ensure you are selecting a unique name. Keep in mind that you have to submit the ‘Name form’ to Suruhanjaya Syarikat Malaysia (SSM) and submit RM30 for each name of your choice.
5. Business Address
There are different types of business addresses. For instance, you might have a traditional physical office that might be rented or purchased in your name, or you might be running an online business from a virtual office.
Whatever the case, it is important to have a permanent business address that you will provide at the time of incorporation. If you are a foreigner who wants to establish a company in Malaysia, you might have to use virtual offices to run your business.
6. Consult an Accounting Firm in Malaysia
Despite the ease of doing business in Malaysia, realize that setting up a company in Malaysia from scratch can be difficult and overwhelming for anyone. Even if you are well-familiar with the rules and regulations, you can run into a variety of issues during this process.
Therefore, you should consider consulting an accounting firm in Malaysia when setting up a company in Malaysia. These firms have experienced professionals who can guide you through the process of company formation. Moreover, local service providers are fully familiar with the rules applicable to a specific industry, so you will not have to research it on your own.
Once you have prepared all the documents either by yourself or with the help of an accounting firm in Malaysia, the next step is incorporation, which is the core of company registration.
Most companies are registered as private companies limited by shares, or Sdn Bhd. Such companies are incorporated under the Companies Act 2016. An experienced accounting firm can facilitate you in company incorporation
8. Human Resources Management
In a Nutshell
These are the top eight things everyone should keep in mind while setting up a company in Malaysia. Once you have considered these factors, you should have no issue in going through the company registration process easily.
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