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
*Sole Proprietorship
*Small Business Enterprise
*Partnership
*Company
Sole proprietorships:
*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
opinion.
Partnerships:
Like sole proprietorships, only Malaysian citizens or permanent residents can register partnerships. Personal names or trade names can be used as business names,
Companies:
The most common type of company in Malaysia is a company limited by shares (public limited and private limited companies).
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".
Companies:
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,
>commerce,
>craftsmanship,
>occupation,
>profession or
>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
1956 .
*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
partners.
Sole Proprietorship
*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.
Partnership
*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
>mental disorder,
>falls bankrupt,
>resigns or
>dies.
Company
*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.
Limited Companies
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
their shareholding.
*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
*Franchise System
*Licenses and Permits
*Business Locations and Sites
Managing Your Business
*Human Resource Management
*Taxation
*Accounting and Auditing Needs
*Standard and Accreditation
*Take Over and Mergers
*Winding Up the Company
*Arbitration
Growing Your Business
*Developing Your Business
*Incentives, grants, awards
*Human Resource Development
*Public Listing
*Bursa Malaysia and MESDAQ
*Marketing and Advisory Service
*Protection of Intellectual Properties
