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Beginner’s Guide on Starting a Software Development Business in Malaysia
Starting a software development business might have been an idea you’ve been toying with for some time. Now that you are ready to take the entrepreneurship plunge into the business world, the next question comes to mind. Why should you consider starting a business here in Malaysia? Well, that is what we are here to answer.
Software development is a fundamental aspect of computerisation and automation. If you believe in optimising the process and have the technical know-how, it could be a perfect business in Malaysia. Malaysia’s start-up business scene is thriving now more than ever. In the hopes of digitalising businesses, more enterprises need assistance to enhance their business processes. The situation is creating a plausible avenue for software development companies to provide necessary progress to start-ups. Since the Malaysian government is urging entrepreneurs of all kinds to get onto the digital economy bandwagon, software developers should also be ready for the influx of possible customers.
With Industry 4.0 being the buzzword among businesses, software development is imperative to business optimization and future success. Foreign software investors can start a private limited liability company where you can have total ownership. Furthermore, there are many grants and tax exemptions for software development businesses in Malaysia. As long as you have your business plan ready, you can strategize and foresee the future of your business.
With the right company incorporation services team in Malaysia like 3E Accounting, your business is ready to kick start its journey off on a strong footing. Let’s take a closer look at the preparation process and how you can prepare to get started.
What Is a Software Development Business
A software development business is a business that creates, develops, updates, and designs custom software applications for other businesses. Applications are created and designed based on the needs of the client to suit every individual’s specific requirements. This can include developing the framework and the tools that individuals or businesses need to help them solve a problem or achieve a specific outcome.
Malaysia is home to a Multimedia Super Corridor, an initiative that was launched by the fourth Prime Minister Mahathir Mohamad. He based it on his idea of turning the country into SouthEast Asia’s Silicon Valley. That vision spurred the intense growth of information technology in the country. In the initial years, most ICT giants were invited to base themselves in Cyberjaya. More than twenty years onwards, Malaysia now has plenty of software development companies.
With attractive tax incentives, you too can set up a software development business in Malaysia. With 3E Accounting working alongside you as your dedicated corporate service provider, there is nothing you need to worry about. We’ll help you take care of everything so that you can focus on what matters the most to you: Building your business and turning your vision into reality.
Malaysia’s Business Registration Process
Before your business can be up and running, you must first go through the Malaysia company registration process. Whether you’re a local or an international investor, you need to register your business legally in Malaysia. As a foreign investor, you will definitely benefit from our help with the company registration process. We know the process inside and out, and it will save you a lot of time and hassle running back and forth. Your goal is to start your business as soon as possible, and we can help you ensure the process goes smoothly.
The first step is to gather your documents and have your company registered with the Companies Commission of Malaysia or the SSM (Suruhanjaya Syarikat Malaysia). It is the regulating authority for all businesses in Malaysia. 3E Accounting can help you gather your documents and submit an application to the SSM. With us going over it with you, we can let you know if you’ve missed anything important.
You will need one local director and one local shareholder on your team for the business registration process. Depending on your business structure, you may also require a Company Secretary. Our team can help with this too.
The Licenses and Permits You Need
The software development business falls under the ICT (Information, Communication, and Technology) sector. To set up a software business in Malaysia, you will need to lodge an application with the Malaysia Communications and Multimedia Commission (MCMC). Per the Communications and Multimedia Act 1998 (CMA), licences that are issued under the CMA are both service and technology-neutral. Some of the licenses you might have to apply for under the CMA include:
- Network Facilities Provider license
- Network Provider License
- Application Service Provider License
- Content Application Service Provider License
If you’re unsure about licenses your business needs, 3E Accounting can assist. Our in-depth and thorough consultation and guidance will leave you feeling confident you’ve started a business that is on the path to success.
For more information about starting a software development business in Malaysia, and for our other services, contact 3E Accounting today.