Students are exempted from business registration fees from Jan 1, 2017
In a bid to encourage more young people especially students to join the workforce as entrepreneurs, the Malaysian government has announced an initiative of exemption of business registration fees, starting from Jan 1, 2017. The main reason why is to encourage more young people to become entrepreneurs while they are still studying. The student’s business plan will equip them with more soft skills and entrepreneurship, which will in turn make them a better employee.
According to the Prime Minister, Datuk Seri Najib Tun Razak, students from public and private institutions of higher learning who intend to venture in new business will be exempted from business registration fees with the Companies Commission of Malaysia (SSM) starting from Jan 1, this year. The Prime Minister said the exemption under the Registration of Businesses Act was aimed at encouraging more young entrepreneurs to take advantage of the RM10mil grant allocated by the SSM. The grant is planned to be reimbursed over the next ten years or RM 1 million per year.
The Malaysian government has rolled out the plan to boost the development of digital economy especially in the year 2017. In the new Budget, Malaysia will launch the world’s first Digital Free Zone where the agenda will empower the digital world in Malaysia and is expected to boost the digital economy sector to a greater height. The improved high-speed broadband is the other initiative being introduced to encourage more people to try out online business.
As such, the government hopes that young people could adopt the online business platform or venture into the world of e-commerce because this will help them to outreach more customers and market their business better. The business registration cost, either under a sole proprietorship (business name in their own name as per identity card or a trade name) or partnership using a trade name for a period of one year only. The cost for sole proprietorship registration using personal name costs RM30 while registering using trade name costs RM60 per annum. With the recently-announced initiatives, students are exempted from the business registration cost.
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