How to Start a Small Business in Malaysia As a Foreigner
A vibrant and bustling commercial hub in the heart of Asia, foreigners will find starting a small business in Malaysia an irresistible allure because of the vast potential that the country holds. A robust and bustling commercial environment, Malaysia has established itself as a centre of trade, manufacturing, culture and cultivation, thanks to its very strategic location in Southeast Asia and proximity to many other thriving economies.
When it comes to how to start a small business in Malaysia as a foreigner, every entrepreneurial minded investor is going to want to know what they are in for and what they can come to expect. The advantages, the limitations, the legalities and the benefits that they stand to gain are all going to be a part of this very big question as to why they should consider starting a small business in Malaysia.
Starting a small business in Malaysia as a foreigner may be easy, and with the right assistance, it can be set up quickly in no time. Here are the other factors that you will want to consider when it comes to how to start a small business in Malaysia as a foreigner:
- The Viable Business Options – You need to first ask yourself what it is you are passionate about, and then do your due diligence and dive into researching the industry as thoroughly as possible. Is there a need and a demand in Malaysia for what your business has to offer? What is the big picture you are looking at? What skills, products and services can you offer that will make your small business stand out amongst all the rest? Take your time researching, even if it were to take days, months or weeks, because it is always better to know the industry inside and out before making a big commitment to setting up a company in Malaysia.
- Understanding the Country – For a foreigner, Malaysia is going to be unlike anything they have ever experienced before. Setting up a business alone is a challenge in itself, doing it in a foreign country is even more of a challenge. Before you set up a small business in Malaysia as a foreigner, take your time getting to know the country, the local customs and the people, travel the country and get a feel for what Malaysia is like, not just in the city but in as many places as you can manage.
- Knowing the Business Entity Options – The next thing you are going to want to find out about is what business entity options is going to be the most suitable for your business needs. In Malaysia, private limited companies registration which are known as Sendirian Berhad (Sdn Bhd) is the most common entity which is allowed for foreigners, and you need to find out if this option is going to be suitable for your business purposes.
- Get Familiar with the Local Laws and Policies – The taxation system and labor laws, local council, regulation and permits granted by the different government agencies and bodies are the next part of the process to discover. Does your business need special licensing and permits before it can run?
Due diligence is going to be the most important part of uncovering how to start a small business in Malaysia. The benefits and advantages of setting up a business here are the easiest part of the process, it is the other aspects that you need to make sure you cover before you make the decision.