Running your own business (Also see Useful Accounting Practices for Small Businesses) sounds tempting for most people as they think that this means freedom. However, they often neglect the fact that they need to put in a lot of effort and time in it. In this article, we will focus on the steps (Also see Steps to Take for Startups) that you should take if you want to run your own business (Also see How to Choose the Perfect Accountant for Your Business).
Firstly, you need to decide on the type of business that you want to establish. In Malaysia, there are several different business entities that you may choose from, and they have specific tax structure and compliance requirements that you need to follow. Hence, selecting the type of business entity is very important. If you have no idea about the correct way of doing this, you may seek help from a secretarial firm Johor Bahru and get the company incorporation services.
Local businesspersons may choose to register their company as a company, limited liability partnership (LLP), general partnership or sole proprietorship. For foreign businesspersons, they may establish their company as a foreign-owned company, representative office, private limited company, Labuan company or locally incorporated company. Foreign investors with permanent resident status in Malaysia may set up a partnership or sole proprietorship.
The next step is to give a name to your business (Also see Tricks From Millionaire Business Owners). A good business name would play a role as an identity of a brand, and it can be one of your marketing strategies. After deciding on the business name, you need to run a name check by filling in the Form 13A – Request For Availability Of Name and submit the form to SSM. You need to pay RM30.00 for each business name that you apply. Then, you should register the business name with SSM so that you are approved to form a company in Malaysia.
After that, you need to choose a good location for your company as a strategic place can be part of your marketing strategy, and the next thing you need to do is to register the office address. Having a local office address which is legally registered is mandatory in Malaysia.
Preparation of incorporation documents includes the approval letter from SSM regarding the business name, a statutory declaration by a person before appointment as a director, or by a promoter before the incorporation of the corporation, a copy of identity card of the company secretary and all the directors, memorandum and articles of association (M&A), as well as the declaration of compliance.
You may incorporate your company after getting these documents prepared. After getting the approval for the company’s name from SSM, you have to submit all incorporation documents in three months from the date you got the approval. If you fail to do so, you need to request a name search again.
All the applications for company incorporation have to be submitted with a fee. For companies which are limited by shares, the fee is RM1000, and for those that are limited by guarantee, the fee will be RM3000. After paying for the registration fee, you will obtain the registration certificate of your company in an hour.