Business Opportunities in Malaysia

The COVID-19 pandemic has inevitably endangered world trade, and Malaysia has not been able to escape the hit as well. Large Malaysian companies suffer huge losses and await uncertainty. At the same time, the global economy is in severe crisis, and business opportunities during the pandemic in Malaysia remain slim.

Nevertheless, while COVID-19 has completely stopped some businesses, certain business ideas managed to succeed and thrive during this difficult time. Here are the top five business opportunities in Malaysia during the pandemic.

1. Disinfectant And PPE Manufacturing

During the pandemic, the cleaning and disinfectant industry is at its peak. While this business idea can certainly do well in Malaysia, business owners need to keep in mind that many established sectors have already been involved in this particular field. Therefore, if a new entrepreneur intends to enter this market, they must arm themselves with better and more effective products to gain customers.

Cleaning services can bring additional income to this industry. If the company has potential or trained human resources, who are especially good at cleaning and disinfection services, it must deploy them for good business at this time. Business owners can utilise their skills to start a cleaning business. They can also carry out the marketing activities of the company’s disinfectant and PPE products at the same time.

2. E-Commerce

When most of the business giants collapsed, e-commerce seemed to be moving in a different direction. With the growing demand for common items from customers locked in their homes in Malaysia, e-commerce sites seem to be the only convenient and safe option to meet their everyday needs. E-commerce platforms offer a wide range of products, ranging from ordinary groceries to essential medications. Furthermore, this platform provides the best way to order and obtain products without physically getting out of the house.

During the COVID-19 crisis, e-commerce was one of the fastest-growing businesses in Malaysia. E-commerce not only did a good job on its own but also pulled many other industries out of the ditch, including the product supply chain, delivery business and agriculture. As a result, Malaysia’s e-commerce business was able to satisfy consumers’ demands and assist manufacturers, farmers, and other sectors during this economic downturn.

3. Online Tutorial Services

Online tutorial services can generate considerable income even in the dry business season because of COVID-19. Social networking sites like Facebook and YouTube are the main outlets for online tutorial services. These services consider various professional and academic skills development courses for Malaysian and students from all over the world.

Interested users can enroll in these online courses via paid subscription packages. The benefit of this type of business is that it does not require financial stability, large resources, or big office space. Business owners only need to prepare camera equipment, materials or smartphones, suitable corner space, and good-quality headphones.

Nonetheless, teaching online does require professional expertise and solid academic knowledge. If the entrepreneurs can meet this condition, then they can easily set up this business.

4. Online Consultancy

The lockdown due to COVID-19 can lead to restrictions on social freedom, but no matter what situation Malaysia is in, the need for knowledge and expertise always seems to be valuable. In the consulting business, when all physical offices were closed due to Covid-19, entrepreneurs can still equip themselves properly to offer online consulting services for their valued clients.

Moreover, business-to-business or person-to-person consulting in a variety of professional fields has increased significantly during the lockdown, thanks to copious online platforms, such as Zoom and Skype.

5. Live Customer Support

This field includes customer support and online customer care. Whether it is health support or any other security inquiry that requires laws and compliance, online customer support agencies are in high demand during the pandemic.

Like many other countries, Malaysia also has a national online customer service and help desk that can handle COVID-19 and patients’ information and other people looking for various information. Many of these online support centers responsibly connect patients with medical staff and people with the services they need. Some providers also offer emergency social services and customers on-demand counseling.

Getting Help From A Professional Business Registration Malaysia Services

While these business opportunities can indeed be lucrative, setting up a legally compliant business in Malaysia can be daunting, especially for first-timers. A professional business registration Malaysia services help business owners to register a company in Malaysia without the hassle and ensure the newly-established business adhere to the current regulations.

Private-Limited-Company-in-Malaysia

One of Malaysia’s most common business structures is a limited liability company or company limited by shares. Malaysia’s limited liability company may take two primary forms: the public limited company or Berhad and the private limited company or Sendirian Berhad.

Generally, a public limited company is selected to incorporate larger business operations, whereas medium-sized companies typically choose to register a private limited company. This article guides you through what you need to know about incorporating a private limited company in Malaysia.

Legal Requirements for Setting Up a Company Limited by Shares in Malaysia

The process of private limited company registration in Malaysia is done following the Companies Act’s regulations. Below are the basic requirements for incorporating a private limited company in the country:

  • The company’s trading name should include the terms Sendirian Berhad.
  • The company must have at least two shareholders (Section 14, Companies Act).
  • The company needs to appoint at least two directors (Section 122, Companies Act).
  • The company must appoint a corporate secretary who can be represented by a person that the Companies Commission of Malaysia certified. The company secretary may also be represented by a member of a professional organisation that the Minister of Domestic Trade Cooperative and Consumerism prescribed.

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    While Malaysia permits foreigners to become a shareholder, the director and corporate secretary must have a primary residence in the country, as per Section 196 of the Companies Act. The company’s director and shareholder can be the same individual, must be at least eighteen years old and not disqualified under the Companies Act 2016’s Section 298.

    When incorporating a private limited company, the business owners should prepare details on the following:

  • The company’ proposed name
  • The company’s types of business activities
  • The company’s registered office address
  • Declarations signed by the directors
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    Moreover, business owners need to prepare three kinds of payments for their company incorporation, including paid-up capital, registration fee and company secretarial fee. Fortunately, the minimum paid-up capital for incorporating a private limited company is only RM 1, and the SSM only charges RM 1010 for the registration fee. The corporate secretarial fee differs from one corporate secretarial agency to another.

    Main Benefits of Setting Up a Private Company Limited by Shares

    One key advantage of establishing a private limited company is the liability protection for the shareholders; shareholders will not be completely liable for the company’s debts. Moreover, this business structure employs an easy procedure for the transfer of shares.

    The company’s statutory documents should stipulate that the maximum numbers of members are fifty. Also, the bylaws should comprise limitations about the public’s participation in the company’s share.

    Post-Registration Requirements for a Company Limited by Shares

    After completing the registration, business owners need to purchase their Certificate of Incorporation and appoint a corporate secretary within thirty days from the date of incorporation.

    The company will also need to set up a corporate bank account for the Goods and Services Tax number registration. The following are other critical matters a private limited company needs to do after registration:

  • Register for social security at SOCSO or the Social Security Organisation.
  • Register for EPF or Employees Provident Fund within seven days of hiring the first staff.
  • Set up an Annual General Meeting or AGM. A private limited company can choose to either hold or not hold an AGM. Those that choose no to hold an AGM must circulate their financial reports and statements to their members within six months from their fiscal year-end before lodgement to the Registrar.
  • Lodgement of the annual return. As per Section 68 and Section 576 of the Companies Act 2016, the company needs to submit an annual return within thirty days from the anniversary of its incorporation date. The fee for lodging an annual return in SSM for a private company is RM 150. The Registrar may strike the company off of the registrar if it fails to lodge the annual return for three or more consecutive years.
  • Filing of tax returns. A private limited company must register with the LHDN or Inland Revenue Board of Malaysia once it commenced its operations. It has to register its income tax number and PAYE or pay-as-you-earn number through the board.
  • Getting Help from a Professional Company Registration Malaysia Services

    The process of company formation in Malaysia can be complicated and daunting, particularly for start-ups. A professional company registration Malaysia services can help streamline the incorporation process and ensure the new company adheres to relevant regulatory requirement.

    Company-Registration -in-Malaysia

    Malaysia offers various benefits to entrepreneurs and investors looking to set up a company in the country, including an attractive tax system and business-friendly policy. Moreover, its talented and experienced pool of multinational workers makes Malaysia one of the best places for any industry base investment.

    To legally run a business in Malaysia, business owners need to choose a business entity suitable for their business and register the company with the “Suruhanjaya Syarikat Malaysia” (SSM) or the Companies Commission of Malaysia. This article guides you through what you need to know about the requirements for company registration in the country of Malaysia.

    Registration Requirements For Local Companies

    Under the Companies Act of 2016, business owners can register two (2) types of local companies in Malaysia:

  • Unlimited
  • Limited by shares
  • Here are the registration requirements for these companies.

    A. Company Limited By Shares

    Companies with share capital can be registered as private or public. A private company is recognised through the words “Sendirian Berhad” (Sdn. Bhd.), while a public company is identified through the term Berhad or Bhd.

    Business owners intending to set up this type of company need to meet the following requirements:

  • Have at least one shareholder
  • Have at least one director
  • Appoint a corporate secretary who is either a person joining a professional organisation that the Minister of Domestic Trade Cooperative and Consumerism prescribes or a person authorised by the SSM
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    The company’s director and corporate secretary must have a place of residence in the country.

    The process of company incorporation includes the following:

    1. Conducting and applying a name search. There is a payment fee of RM 30 for every name applied.
    2. Lodging incorporation documents with the SSM within three months following the company name’s approval date. These documents include:
    3. The Constitution’s original copy (previously knowns as MOA)
    4. Form 48A, which include the statutory declaration by the promoter or director before appointment
    5. Form 6
    6. Additional documentation, including Form 13A’s original copy, one SSM letter’s copy approving the company name and one copy of every director’s and company secretary’s identity card

    Under Section 14 of the Companies Act 2016, a flat business registration fee Malaysia of RM 1000 is payable to SSM for every incorporation application of the company limited by share. Upon submission of duly completed incorporation documentation and registration requirement’s compliance, the SSM shall issue a registration notice.

    B. Unlimited Company

    Registration processes and required documents for incorporating unlimited companies in Malaysia are similar to that of the company limited by shares. The only difference between the two is that unlimited companies must state their members’ liability as unlimited in the Constitution, unlike the companies limited by shares.

    Registration Guidelines For Foreign Companies

    The Companies Act defined a foreign company as follows:

  • A corporation, company, association, society or other entity incorporated outside of the country
  • An unincorporated association, society or other entity, which per the regulation of its country of origin, can be sued or sue, or carry property under the secretary’s name or the name of other officers of the establishment rightfully appointed for that cause, and lack a principal place of operation or head office in the country
  • A foreign company can carry out business activities in Malaysia by registering its business through either of the following:
  • Incorporating a local company with the SSM
  • Registering the company with SSM
  • The registration procedures of a foreign company include: Application of name search, which involves Form 13A’s completion and submission to the SSM and a payment fee of RM 30. The name registered should be similar to the foreign company’s registered name in its home country
  • Lodgement of registration documentation within three months following the company name’s approval date.
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    The necessary documents for registering a foreign company in Malaysia include the following:

  • The incorporation certificate or foreign company registration certificate’s certified copy or CTC
  • A CTC of the company’s statute, charter or other means specifying its Constitution
  • Form 79
  • Form 80
  • Memorandum of Appointment or a power of attorney that authorises the individual living in the country to receive, on behalf of the foreign company, any notices given to the foreign company
  • Additional documentation, including Form 13A’s original copy and one SSM letter’s copy approving the foreign company’s name
  • Getting Help From A Professional Company Registration Service Provider in Malaysia

    The process to register a company in Malaysia can be daunting and complicated, especially for first-time entrepreneurs. A professional company incorporation agency can help to streamline the registration process and ensure the company complies with all statutory requirements.

    register a company online

    There are almost 4.7 billion active internet users worldwide today, which account for nearly sixty per cent of the global population. Of this figure, more than ninety per cent accessed the internet through mobile devices.

    Considering the numbers of internet users online, setting up an online store would give you various benefits, including business scalability, limitless freedom of access, low overhead with high margins, and the opportunity to access the global market. You can start an online e-commerce store in Malaysia with a low budget without renting a physical store.

    Start Your Online Business in Malaysia in Just 5 Simple Steps

    Step 1: Decide your Product and its Selling Nature.

    There are various types of online business available in Malaysia. Business owners need to identify an online business type that fits the products or services they offer. Here are some of the product and services categories:

  • Digital Products: Videos, e-books, audio files, games, etc.
  • Physical Products: Cosmetics, bags, phone accessories, etc.
  • Marketing Services: SEO, web designing, portfolio website, etc.
  • Others: Business owners who sell or resell other business products on a commission basis or sell items differently should mention the category accordingly.
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    Before setting up an online business, business owners should first identify the purpose of their business setup. Moreover, preparing a robust business plan would help them start their business on the right track and increase their success chances.

    Step 2: Register the company name and business with SSM

    Business owners need to register their company or business with the Suruhanjaya Syarikat Malaysia (SSM) to legally carry out business activities. Before registering, they need to first choose a business entity.

    The following are some types of business entities in Malaysia:

  • Sole proprietorship: This is the most inexpensive and simplest form of business entity. It is owned solely by one individual since his or her liability is unlimited. Business owners can register their business under their name for RM 30 every year or register it under a trade name for RM 60 every year. Only Malaysian citizens or permanent residents are allowed to register for a sole proprietorship.
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  • Partnership: This business entity is an extended version of a sole proprietorship with more than one owner. It consists of a joint entity holder with two or more people and a maximum of twenty members. Registration starts from RM 60 every year. Like a sole proprietorship, only Malaysian citizens or permanent residents can register for the partnership.
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  • Company: Company provides a separate entity for the business. Unlike sole proprietorship and partnership, it has a more complicated Malaysia company registration process. Bestar Consulting can help business owners register a company in Malaysia correctly while compliant with the current regulatory requirements.
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    Step 3: Build an Engaging Website

    Upon successful company registration Malaysia, the next step is to build an e-commerce website to make the business go live on multiple online platforms. Business owners can begin their venture by registering the corresponding domain name and email address and getting hosting.

    A domain name is the business main web address where customers can access it, such as companyname.my. After the business is successfully registered, business owners will receive a registration number or ID. They can use it to make their website more relevant, localised and credible.

    Creating an email address that ends with the domain name, such as support@yourdomain.my, helps build credibility and trust amongst the consumers.

    Step 4: Design the Website and Manage Content

    After hosting the domain name and email address, business owners can start designing their website with appropriate theme and navigation and upload content. The activation typically takes about one to two hours.

    Business owners should build a user-friendly website with simple but precise navigation to ensure the customers can easily navigate the website and would love to visit it repeatedly. Be sure to pay attention to the website design quality since it will affect its result in SERP or Search Engine Result Page. Business owners that do not have the expertise to design their website should outsource the work to professionals.

    Another factor business owners need to take note of is the website’s content and speed. Be sure the website contents are unique, offer value and not spammy. Use keywords appropriately across the content to rank well on Google. The site should also load quickly for the best user experience. Optimising the site for SEO regularly would help the website rank better on the search engine.

    Step 5: Start Promoting

    Upon successful business registration and website creation, business owners will get an e-commerce license in Malaysia. The license will help them promote and advertise their business via regular postings, social media marketing, paid advertisement, etc.