Riding High – Set Up a Private Transportation Services Business in Malaysia
Looking to set up a private transportation services business in Malaysia? Here’s a reference checklist from 3E Accounting.
One of the hallmarks of civilization is a transportation infrastructure and network that is well-maintained and carefully planned out. Malaysia’s transportation sector is well-developed as users have access to world-class public transport. Nevertheless, private transportation has revolutionized the industry with its e-commerce viability. The success of companies such as Grab and LalaMove is a testament to this. You too can join the transport revolution when you set up a private transportation services business in Malaysia.
A Right Turn to Success
Malaysia is considered one of the most business-friendly countries in the world. It is relatively easy to incorporate your business and get up and running in no time. However, it is always best to prepare and do your due diligence. In your business plan, determine issues of:
- Business aims, objectives and sustainability.
- Transportation business model.
- Location, target market and competition.
- Financial plan and cash flow forecast.
- Bumiputera, local or foreign equity ownership restrictions.
- Capital investment requirements.
A private transportation services business in Malaysia can include any of the following:
- Rental of Vehicles for Events: company trips, school trips, weddings, party bus, minibus charter.
- Corporate Services: executive ride shares, limo services, airport transfers.
- Miscellaneous: school bus, delivery services, e-hailing cabs, private hotel tours.
- Sole Proprietorship
- Partnership or Limited Liability Partnership (LLP)
- Private or Public Limited Company (Sdn. Bhd. Or Berhad)
- Companies limited by guarantee
The easiest to set up, with the least investment, is a sole proprietorship or an LLP. Your company will need a Malaysian business address, business insurance as well as a corporate bank account. It is also not advisable to delay registering with the Inland Revenue Board of Malaysia (LHDN).
It is highly recommended that you invest in website design and development as well as an app. This will get your brand noticed and make it easier for customers to avail themselves of your company’s services.
Depending on the nature of your business, you may need the necessary approvals to operate. Business license in Malaysia can be general or industry-specific. For a transportation business, you will need to get the car rental and vehicle leasing license from the Land Public Transport Commission (APAD).
You will also need to ensure that all drivers in your company have a Vocational Driving License (VDL) or Commercial Driving Licence. Check out the Malaysian Government portal MyGovernment as well as the Road Transport Department (JPJ) website for more information.
Another option is to consider joining one of the many e-hailing transportation services. While this does not require company incorporation, other processes need to be completed. These include valid driver’s license, Puspakom vehicle inspection, training, insurance and medical check-ups. You will also need to apply for an e-hailing PSV license.
Zooming to Success
It is quite possible to set up a private transportation services business in Malaysia on your own. However, some essential processes do require a professional touch. 3E Accounting has the requisite industry expertise to ensure a smooth run from incorporation to website design and development.
Contact 3E Accounting today for that essential first step towards successful business solutions.