Starting a business may be a scary task- especially if you were to do it for the first time. There are several things to take into account- business type, location, customer base, startup capital and so on. However, all these factors are merely steps to overtake once you realize the potential your business has in the current market.
Malaysia is an entrepreneur’s dream when it comes to starting up a business. With its hugely diverse population, it is relatively simple for everyone to have a suitable customer base. In order to start your business, it is every successful entrepreneur’s first tip to create a business plan. Fortunately, here at S&F Consulting, we’ve come up with the following guideline for you to use as a checklist in order for you to have a good idea of what the process will be like for you. If you have any further enquiries don’t hesitate to contact us at S & F Consulting- the best part is that advise is completely free of charge.
Steps to starting up a business in Malaysia
Drafting your business plan
The first step to any successful business is to create a plan. Think of these factors as you design your business:
- The market for your product- what is your target demographic? How powerful are your competitors?
- What is the sale price of your product? How much of a startup capital will you require?
- What is your business timeline? Do you have goals to meet in terms of profit made within a time frame?
Selecting your business body
Next, choose what form your business will follow, in Malaysia, according to the Companies Commission (SSM), each business type has its own set of rules. They are as follows:
- A limited liability company (Sdn Bhd)
- A sole proprietorship
- A partnership
Considering your budget
Now you need to consider your budget when it comes to starting your business. As Malaysian law requires only RM2 as a startup capital, it is up to you to as to how much you choose to invest into your business. If you lack large funds at this point you may even choose to take on a bank loan. You might also want to create a prospective timeline of profits and business goals.
Reservation of your business name
After the above steps have been taken, you can now move on to creating and reserving your business name. It is best to think carefully at this point, as you need to decide on a name that truly reflects your business’s goals as well as one that is unique and one that will attract your customer base.
Registration of business address
The next step is to choose an address and to register said address with the SSM. Like the name of your business, its physical space is also one that is essential when attracting your customer base. For example, setting up a bookstore and coffee lounge along a loud and busy road would keep away many customers as opposed to having one in a quieter street.
Registration of business license
You may now proceed to the SSM to officially register your business, this process will require a registration fee to be made as well as the submission of some documents. (I.e. your business details, your details, filing proof for licenses, business summary, business address etc.)
At this point it is best to set up a business bank account
Creating your website (optional but highly recommended)
At this point you may choose to host a company website, while this is at your discretion, it is highly recommended as this will be the cheapest and most effective way to communicate with your customers as well as to build your brand.
Advertising (post registration)
Hooray! Now that you have your business set up, you have to advertise it to your target demographic so that you may maximize profits. You may do this via physical advertisements or you may choose to do this online via social media channels. In most cases its best to do both at the beginning.
While the process may difficult, with our help, here at S & F Consulting, you’ll have your own business set up in Malaysia in no time at all. If you’re still undecided about this, simply contact us as we provide free advice!