Starting a Business in Malaysia: What You Need to Know

Starting a Business in Malaysia: What You Need to Know

Step 1: Know Your WHY

Before anything else, ask yourself:

• Why do I want to start a business?

• What are my unique skills?

• What’s my business idea?

• Do I have capital? How will I fund it?

• Have I done market research?

Step 2: Build Your Foundation

Business Plan

• Define your vision

• Identify target market & competitors

• Plan your strategy and operations

Market Research

• Study trends

• Analyze competitors

• Evaluate risks

Financial Planning

• Determine capital needs

• Choose funding options (personal, investors, grants)

Step 3: Choose a Business Structure

For Local Entrepreneurs:

• Sole Proprietorship

• Partnership / LLP

• Private Limited Company (Sdn. Bhd.)

For Foreign Entrepreneurs:

• Locally Incorporated Company

• Labuan Company

• Representative Office (with PR status if sole proprietorship)

Step 4: Business Registration Checklist

1. Name Your Business

   • Run a name search via SSM (RM30 per name)

2. Find a Premise

   • Consider location, budget, industry fit

3. Registered Office Address

4. Prepare Documents

   • Constitution, declarations, ID copies

5. Submit to SSM (within 3 months of name approval)

6. Pay Registration Fee

   • RM1,000 (typical for Sdn. Bhd.)

7. Receive Certificate of Registration (within 1 hour)

8. Open Corporate Bank Account

9. Register for Taxes (SST, Corporate Tax)

Post-Incorporation & Compliance

Annual Filing

• Audited financial statements

• Annual tax returns

Employer Responsibilities

• Register with:

  • EPF (retirement fund)

  • SOCSO (social security)

  • EIS (unemployment insurance)

• Comply with labor laws

Tax Compliance

• File corporate tax

• Register & report SST (if applicable)

• Handle withholding tax for foreign payments

Other Essentials

• Apply for relevant business licenses

• Appoint certified auditors

Government Grants You Should Know

Starting a Small or Home-Based Business?

Small Business

• E-commerce, fashion, services, affiliate marketing

• Local & foreign entrepreneurs can register as companies

Home-Based Business Ideas

• Online store

• Bakery

• Consulting / Freelancing

• Virtual Assistant

• Pet Care, Elderly Care, Tutor, Nail Salon, etc.

Still need to register:

• Business name

• Company incorporation

• Optional: Licenses (depending on activity)

Need Help Starting Up?

Thrive Business Asia in collaboration with 3E Accounting Malaysia can:

• Handle company registration

• Guide you through tax & licensing

• Offer startup-friendly packages

Contact Us to get started and unlock Malaysia’s business potential.

Summary

Malaysia = Opportunity
Whether you’re launching a tech startup or a home bakery, Malaysia offers:

• Low barriers to entry

• Government support

• Diverse business structures

• Strategic Southeast Asia location