Doing Business in Malaysia
*Planning Your Business
*Starting Your Business
*Managing Your Business
*Growing Your Business
Planning Your Business
*Planning is a very important thing that an entrepreneur needs to do.
*The success and failure of a business depends on it.
Forms of Business in Malaysia
*Small Business Enterprise
*only Malaysian citizens or permanent residents can register.
*Personal names or trade names can be used as business names
*The relevant authorities, like the Registrar of Business, reserve the right to
reject any submitted name if it is deemed misleading or inappropriate in their
Like sole proprietorships, only Malaysian citizens or permanent residents can register partnerships. Personal names or trade names can be used as business names,
The most common type of company in Malaysia is a company limited by shares (public limited and private limited companies).
Private limited companies:
cannot sell shares to the public, and are distinguished by the appellation "Sendirian Berhad", shortened to "Sdn Bhd" or "S/B".
Public limited companies source their capital by:
selling shares to the public, and are distinguished by the appellation "Berhad", shortened to "Bhd".
Registering Your Business
*A business can be defined as an organization that provides goods and services to
others who want or need them.
>every form of trade,
>other activities that is carried out for the purpose of maximizing profit.
*You are required to register your business with the Companies Commission of
Malaysia (CCM) under the Companies Act 1965 and the Registration of Businesses Act
*Businesses that can be registered under the Registration of Businesses Act 1956 at
the Commission of Companies Malaysia are:
Sole proprietorship – a business wholly owned by a single owner.
Partnership – a business owned by two persons and not more than 20
*owned by one person
*need not be operated by that person alone
*can even have large numbers of employees.
Advantages of Sole Proprietorship
*Absolute freedom in decision making.
*All profits will be your personal property.
*No reports of accounts are required.
*Need to pay personal income tax and not business tax
Limitations of sole proprietorship
*You are responsible for the debts and risks of the business.
*Legally, there is no difference between your personal and your business property.
*Your liabilities are unlimited, which means risks and failures in the business
will involve your personal property.
*Pool capital and work together with at least one more person.
*Partners are joint-owners of the business.
*Share the business profits and risks.
Advantages of Partnership
*Partnership means having more expertise and more resources for capital.
*Partnership means business risks can be distributed and shared among partners.
Limitations of Partnership
*All partners carry the same responsibilities
>You are liable for risks and debts of the business even if it is caused by the
actions of your partners.
>With unlimited liability, each partner is also liable to use their private
resources to meet the partnership's debts.
*Disagreements and disputes may occur
*A Partnership’s lifespan is limited – it may end if any one of the partners has
*Companies are registered legal entities formed by several persons.
*Companies can own property, draw contracts and employ people.
*All companies in Malaysia are governed by the Companies Act 1965.
A company and the people who own it are regarded as different entities regardless of percentage of shareholding in the company.
There are three types of limited companies:
*A company limited by shares where the members’ personal liabilities are limited to
the par value of their shares.
*A company limited by guarantee where the members' liabilities will be restricted
to the amount each agrees to contribute to the assets of the company.
*An unlimited company where there is no limit to the members’ liabilities.
Rights and Responsibilities of a Company
*A company has separate rights and responsibilities
*A company can take legal action and can have legal action taken against it.
*Shareholders are not liable for the company’s business management.
*Shareholders are protected against the loss of more than the nominal value of
*The company’s operation is governed by the Companies Commission.
*The company must pay various taxes.
*Companies must publish financial reports checked by authorized auditors
Starting Your Business
*Registering Your Business
*Licenses and Permits
*Business Locations and Sites
Managing Your Business
*Human Resource Management
*Accounting and Auditing Needs
*Standard and Accreditation
*Take Over and Mergers
*Winding Up the Company
Growing Your Business
*Developing Your Business
*Incentives, grants, awards
*Human Resource Development
*Bursa Malaysia and MESDAQ
*Marketing and Advisory Service
*Protection of Intellectual Properties