Malaysia, located in Southeast Asia, offers various opportunities for the individual who wants to start their own venture. It has one of the wealthiest cultural diversity with people of Malay, Indian, Chinese and European origin call it their home. So, the country offers a heterogeneous and skilled workforce with very developed infrastructure. It is also a member state of ASIEN, which gives the country access to a vast region. Malaysia is also technologically advance and home to many famous tech startups. Although there are endless opportunities in Malaysia for doing business, still there are many challenges. There are plenty of obstacles you should know about before launching any business in Malaysia.
First thing first, one must go through some strict rules and procedure in order to obtain a business license in Malaysia, the same goes for company registration in Malaysia. To get these legal documents you will have to pay some fees. There are some even more subtle and severe issues one expected to face while starting a business in Malaysia:
Img source: malaysiatravel.info
Contents
Initiating the Business
Apart from obtaining a business license in Malaysia and company registration, the company will have a hard time even in starting a business in Malaysia. Three steps must be completed within the given time frame which is less than a week. After taking the required form (13A) an application must be submitted to Companies Commission of Malaysia for the company registration process and to make sure that the proposed name for the business is available. All these things have to completed before commencing the process of company incorporation. One of the most hazardous parts of doing business in Malaysia is that getting construction permits in a secure location for the company. It usually takes approximately hundred forty days for a company in completing all the thirty-seven steps to secure the registration.
Rejection by Immigration
Malaysia has a rigorous immigration policy. One of the common things that foreign investors encounter is the rejection by Immigration. If one wants to do business in Malaysia, he or she must make sure that he will not be denied access into the country. It is known to be called a barrier to entering the market.
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Property Registration
In order to get the property registration done, a lawyer needs to be appointed to do all the necessary things which include finding and buying the property. After that, all the legal procedures have to be properly completed as per the law. As for the conciliation and assessment “The Memorandum of Transfer” need to be sent to the Stamp Office and all the government-imposed fees must be paid within the due time.
Managing the Supply of Electricity and Credit
Yet another difficult task is ensuring the free flow of electricity as there are some harsh conditions which must be completed. First of all, an application has to be submitted to TNB. The authority will run the number of fields visit to access everything. Another challenge in Malaysia is that it’s usually difficult to manage credit for the business. Managing credit for the business is really important because for every business cash flow is really is very vital to run things smoothly. Even the foreigners as facing trouble in the opening bank account as the authority has changed the law.
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Cultural Diversity
Malaysia is a culturally diverse country. It’s home to the people of different ethnicity and culture. People of Malay, Indian, Chinese and European origin live in Malaysia. Companies need to research possible cultural reception of their products by the different group and culture. Companies also need to study how culture influences the people’s mind in teams of their buying habit.
All in all, it’s very much clear that, although Malaysia offers a lot of opportunities for potentials business growth at the same time there are some challenges which need proper decision making and expert advice in order to minimize any chance of failure. It’s highly recommended that one should consult with professional consultancy firm like sfconsulting.com.my for a business license in Malaysia.
