7 steps you should know before starting your business in Malaysia

Do you want to start a business in foreign country? Or in Malaysia? Who doesn’t if there are enough opportunities? But doing business in foreign countries is not easy. Maybe you will agree with the facts, to make your “business success” you need to apply various types of strategies and maintain basic business rules and regulation. To make you understand the business rules, law and policy.

Now, I am going to describe 7 crucial steps in this article for starting business in Malaysia

1.Look for local Advisor

Sometimes it is impossible to get things done by oneself. Sometimes it might be challenging for you as a person to complete or submit the business document. Therefore, you need to look for local advisors or agents who have a vast knowledge of business procedures in Malaysia. The might help you out doing specific business tasks. Sometimes foreigners want to establish a business in Malaysia, but they don’t know the procedure of getting a business license of Malaysia.

2.Determine marketing

Marketing is one of the crucial factors for growing your business. You need to implement right marketing strategy to grow your business. However, if you are a small business owner and do not have enough marketing budget, then you can start doing the marketing yourself. There are plenty of marketing strategy small business owners can adapt.

• Get a website: many people use the internet for a common purpose. Building a site of your business is one of the strategies to let people know about your services. 
• Write a Blog:  writing blog is another strategy that increases the awareness of your brand. This strategy helps to improve the website ranking on the search engine, making it reach to more people.  

Facebook Advertising: Facebook is leading among all social media with more than 1 billion active users. So, advertising on social media is great opportunities to let people know about your business services. It doesn’t take a lot of money to advertise on social media which is a good opportunity for small size business.

3.Open Bank Account

Opening a bank account in Malaysia is necessary if you are willing to start a business in Malaysia. While doing business in Malaysia, you need to transact local currencies for your business purpose. You should always remember Malaysian anti-money laundering committee checks the details and know the customer requirements before approving any new bank account. Once your bank account is approved, you can pay the necessary government fees for getting the Malaysian business license

4.Things You Need to Know

Based on the work permit application and paid-up capital, there are mainly three main types of company a foreigner can set up in Malaysia.

•    100 percent foreign owned company

•    A joint venture company with Malaysian business partner

•    Private Limited Liability Company (by shares)

5.The requirement of Malaysian Government Incorporate a Foreign Owned Company

According to the rules of Malaysian governments, a foreign-owned company needs a minimum of RM500000 for starting a consultancy and advisory business. For starting import, export or restaurant business, a foreign-owned company needs RM 1 Million. Moreover, your business concepts should be unique, and it should be beneficial for Malaysian employment and economy.

6.Requirements for starting any Joint Venture with a Malaysian Business Partner

For these types of joint venture companies, foreign directors need to maintain a minimum of 50% control over the business. Malaysian local investors or trading partners should own the other 50%. You need a minimum authorized capital of amount RM500. Moreover, you also need paid up cash of RM 350000.

7.Requirements for incorporating any Private Company Limited by shares

No citizen of Malaysia is allowed to establish a private company in stocks. Malaysian governments only allow foreigners for building a private company Ltd by shares. Under the Companies Act of 1965, this type of company must have a minimum of two shareholders and two directors. The capital structure will be at the discretion of directors to create personal owned or jointly owned company.

Conclusion

Here in this article, I have described some basic rules and regulation for starting a business in Malaysia. This article will also help you understand the things you need to do for licensing our company in Malaysia   Current GDP of Malaysia is $24,520.784 per capita, which makes it this country favorable for starting a business. Malaysian GDP rate currently ranked three among all south Asian county. The Malaysian economy growth is 6.5 to 7 % per year; the economy is also unaffected by the global economic recession.