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Beginner’s Guide on Starting a Private Transportation Business in Malaysia
Malaysia’s transportation sector is well-developed as users have access to world-class public transport. Nevertheless, private transportation has revolutionised the industry with its e-commerce viability. The success of companies such as Grab and MyCar is a testament to this. You too can join the transport revolution when you set up a private transportation services business in Malaysia.
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. Consider this before you begin the company registration process. Due diligence will save you from making poor business decisions in the future.
Some examples of due diligence include business aims, objectives and sustainability and the business model. You should also explore the intended location, target market and competition. Consider your financial plan and cash flow forecast. In Malaysia, entrepreneurs should also research the bumiputera, local or foreign equity ownership restrictions. Due diligence must also be done on your capital investment requirements. 3E Accounting can assist with all of this as part of our company incorporation services.
What Is the Private Transportation Business in Malaysia
The private transportation business is designated for personal or individual use. Unlike public transport, you are not going to encounter mass crowds because this is not going to be easily accessible to the public unless done through a private booking. As the owner of a private transportation business, your company will take these bookings from your clients and then arrange the correct mode of transportation required.
Unlike public transport, private transport allows the user to decide when and where they are going to travel. An example of such a successful private transportation business is Grab, the most in-demand mode of transport in Malaysia at the moment. However, private transport is not just limited to these categories. However, because it is private, this also means that the fees a customer pays will be significantly more than what they would pay if they relied on public transport.
In Malaysia, the private transportation business can encompass several categories. This includes some 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 Services: School bus, delivery services, e-hailing cabs, private hotel tours.
A company can specialise in any sort of private transport offering. This includes bicycles, motorcycles, scooters, recreational equipment, and even sailboats and private jets if you wanted.
The Business Registration Process
Once you have gathered all your documents with our help, the next step is to be recognised as a legal business entity in Malaysia. To achieve this, you must register your business with the SSM. The company registration process also requires that every company would need to have a minimum of two directors who must be at least 18 years or older and residing in Malaysia. These individuals must not have been declared bankrupt in the past.
As your corporate service provider in Malaysia, 3E Accounting can help you determine the best business structure to take on for the company incorporation process. Some examples of business entity options to choose from in Malaysia include the following:
- 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. You also need to register with the Inland Revenue Board of Malaysia. The business registration process sounds like a lot of work, but it is actually very straightforward.
Don’t feel too overwhelmed, because we are here to help. Our experts know the registration process like the back of their hands, and we can easily help you get your business up and running in no time. Now, there is one more thing to do once you register your business with SSM and the LHDN. You should invest in website design and development as well as an app. This will get your brand more noticeable and make it easier for customers to avail themselves of your company’s services. We live in a very mobile world today, and Grab is one example again of a company with a very successful app.
If you have been thinking about starting a private transportation business, then this guide to company registration in Malaysia is going to set you down the right path.
The Licenses and Permits You Need
Depending on the nature of your business, you need the necessary approvals to operate. Business licenses in Malaysia can be general or industry-specific. For a transportation business, you will need to get a car rental and vehicle leasing license from the Land Public Transport Commission (APAD).
Besides your APAD license, you will also need to ensure that all drivers in your company have a Vocational Driving License (VDL) or Commercial Driving Licence. You can find more information on the
Need A Hand? We’ve Got You
One of the many appeals of starting a business in Malaysia is the ease of the process. However, you do require professional assistance. 3E Accounting has the requisite industry expertise to ensure a smooth run from incorporation to website design and development. This is where we come in.
Your business is the most important thing to you and we understand that. That is why we are here to take care of all the nitty-gritty paperwork so you can focus on building your business. Starting a private transportation business has never been easier with us on your side. For more information about our company incorporation services, contact us today.