Is the Process for Registration of Business Complicated?
If you are thinking about registering a company in Malaysia, it is important to know a few facts about the country. That will give you a clear idea of what you are getting into before you start considering how complicated the process is. Only RM2 capital is enough here for company registration, though there are several registration steps that you will have to go through. It is also compulsory to get businesses licensed with Halal, WRT, ESD, and signboard.
The rate of foreign direct investments in Malaysia is increasing by the day, with each year showing better figures than the last. So, the economy of Malaysia is benefitting immensely from foreign investments, while even local investors are not too far behind. To top it off, at a low population density of 32.6 million, the land area of the country is approximately 325,000 km2. So, in such a scenario, is Registration of Business too difficult in Malaysia? Let’s find out!
How complicated is it to register a business in Malaysia?
The businesses in the country need to have proper licenses for starting their operations, but state and sectorial differences end up making this a far more complex procedure than usual. Setting up your business in the country is a complicated affair because of the multiple government bodies responsible for the enforcement and administration of the rules affecting businesses.
Regulations regarding business licenses of foreign investment firms and for the firms aiming to do business in certain trade areas need obtaining additional licenses before starting the business. These licenses might be required at the state or federal level. Don't use plagiarised sources.Get your custom essay just from $11/page
Obtaining general business licenses
The first step towards registering your business is to decide what category your business will come under, such as:
- A business limited by shares
- A business limited by guarantees
- A limited liability company
- A foreign branch office
- A regional or representative office
SSM (Suruhanjaya Syarikat Malaysia) or the local authorities handle business registrations in Malaysia. You can apply for your business license after registering your business.
The primary license is related to the premises of the business, regardless of a signboard license. The local council issues this to your desired business place. The specifications of this application differ from one state to another. So, do not go on assuming that expansion of your business to more premises means you can carry on with the same application process. You might need a signboard notice for every display at business premises, and separate application fees might apply for the same.
You will have to register for the following after the business premises get approved:
- Employees’ and employers’ income-tax registration
- Employees’ provident fund
- Social Security Organization
- Employee Insurance Scheme
So, you now have staff and premises ready for starting the business, and it’s time to consider other aspects of licensing the trade.
Licensing related to trade
A foreign investment company that intends to carry out distribution business, like import and export, retail, franchise business, restaurants, and consultancy, will have to get approved by the Ministry of Domestic Trade and Consumer Affairs and get a distribution license. The government tries to protect local businesses through these methods. The company requires approval or license before applying for work permits for the expatriate staff they need to employ locally.
Additional business licenses are needed for other major industrial sectors, like real estate, hospitality, tourism, transportation, education, health, insurance, communications, finance and banking, construction, and manufacturing. Some of these licenses come from particular local authorities or industrial bodies, which might make the process more complicated.
Professional help in managing the complexities
Starting your business in the country or putting your money in an existing venture might get complicated due to the multiple levels of licenses, and the approvals that come from both state and central levels. The entire procedure might take some time, and any mistake in your application can further delay your malaysia company registration. However, getting professional assistance can be of immense help in navigating through the complicated process of setting up a business in the country.
The professionals are aware of the rules and regulations pertaining to business setup and operations in Malaysia. You will get the assistance you need in dealing with all licensing and approval matters. This factor will help in easing and speeding up the procedure of gaining the approvals you need to start your business. Regardless of the kind of business that you are planning to open in Malaysia, it ensures that you can focus your attention on your core competencies.