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With the 3rd largest economy in South East Asia, Malaysia sees foreign investment flock to it on a daily basis. Currently, their GDP stands at a value of $354.348 billion, which reflects on their Human Development Index of 0.802. Which in turn, determines it as a country with a very high standard of living. As such, Malaysia has a GDP per capita value of $10,941. All these factors taken into account reflect on the country’s unemployment statistics. At only 3.4%, the unemployment rate of the country is quite low.
In fact, due to its large physical area and highly developed cities, Malaysia is very receptive to new businesses. Moreover, despite not having English as an official language, it is still widely spoken. Thus, making communication easy for business purposes.
When it comes to registering a new business in Malaysia, you will need to be aware of the different legal structures. The registration for each structure is largely the same, however IN terms of fees and licenses, the differ. The five available legal structures in Malaysia are as follows:
However, this article will focus on the Partnership legal structure and all it entails for registration. A partnership business can be defined as a business that is owned by two or more individuals. As such, management and profit made is evenly split between the owning parties. Do note that in Malaysia, a partnership can only have up to 20 owners. Even as a foreign national, registration will not be a problem for you, once you obtain a permanent residence permit.
All registrations are done through the Companies Commission of Malaysia, or the SSM. The SSM is a statutory body that regulates all company and business-related happenings in Malaysia. Formed in 2002, the SSM does the combined duties of the Registrar of Companies and Registry of Business now. Ultimately, it can be stated that the SSM is the main enforcing body of the Companies Act of 2016.
As outlined by the companies act of 2016, these rules apply to partnerships in Malaysia:
Now that all the rules pertaining to registration have been covered, we may move on to the steps involved. Registration for a partnership in Malaysia can be done online or in person. If done online it must be done on the website for the SSM. And if done in person, it can be done at the closest SSM office. The steps to register your partnership company in Malaysia are simple and clear cut. They are outlined below.
Step 1- Gather what is required before starting
You will need to have certain documents and fee payments prepared before you start the process. They are as follows:
Step 2- Registering your business name
For this, you will need to fill the form titled [Form PNA.42]
You will need to list three names for the SSM to choose from, in the order of priority.
Once you gain approval, you may submit the form along with the form needed in the next step.
Step 3- Registering your business
Now, you will need to complete the business registration form, i.e. Form A. This will require the following details:
Once you’ve completed the form, all owners will have to sign it.
Now you may submit the completed form either online or in person.
Step 4- Receiving the certificate
Once the payment is made and all documents are vetted, you can receive your certificate within an hour.
This certificate is valid for a period of 1 year. And can be extended for up to 5 years.
Step 5- Grow your business
Now that your partnership has been officially registered, it is time for you to grow your business. There are several ways to grow your business:
By identifying who your target market is specifically, you can research their behaviors. As such, you can offer them a product truly catered to them. In turn, making your product more popular.
By practicing good customer service to new and existing customers, you will create loyalty. As such, your business will receive good reviews- meaning you will receive more customers.
Advertising well does not mean spending a lot of money. In fact, advertising can be low cost if you consider social media as well. By maintaining a good social media presence, you can interact with potential customers. Thus, leading them to your business.
As a new partnership, having a profit goal is essential. This goal does not have to be kept too high; a simple realistic goal should suffice.
Finally, after building your team of employees, as the owners you must ensure they are performing their best. A good business is sustained by its employees and by encouraging them to work hard for the business, you are also ensuring the longevity of your business.