// overview

1	What should you ask yourself before you start?
2	Steps towards incorporating a company in Malaysia
3	Basic company registration forms
4	Requirements of a Locally Incorporated Company
5	Government incentives
6	Securing your idea / invention

 

Am I ready for the challenge and ready to take the risk? Do some soul-searching and ask yourself whether you are absolutely sure that you are well suited to running a company. How much are you willing to stake and what are the potential risks you will face? Starting a business and nurturing it takes a lot of time and effort. Ask yourself these question: Will I be dedicated to this venture? How much of my time and myself can I commit? Can I manage the stress on myself and my family and friends at the start-up stage? How can I manage my time effectively? You could be looking at long hours that will test your character in many ways. Can you handle that? Does your venture motivate you enough to make you go for it? A good way to get started is to think about how you would organise yourself. What would your goals and targets towards set-up be? This could be your greatest source of motivation. List them down in order of priority and give yourself a timeframe for completion. Reward yourself for every bridge you've crossed. A successful entrepreneur is one who: is motivated and who is able to motivate those around him / her is able to manage time effectively. has the ability to leverage off strengths and overcome weaknesses. manages resources well. considers health as well as wealth. is flexible and able to adapt well to change. is willing to learn from others. There are lots of points to ponder before deciding to become an entrepreneur & you may need help in coming to that decision. Invest in some thinking time before you swing into the venture. Prepare yourself mentally. Prepare others around you for the set-up of this venture - the emotional stress will be lesser in the long run. Also see¡­ www.entrepreneurmag.com www.ft.com   Have I Evaluated My Idea? The right idea properly exploited and marketed can launch your enterprise successfully. But take the time to think your idea through and discuss it with people you can trust and count on? Ask yourself these questions:  Does it fills a niche in the market? Is the idea practical? What competition would you be up against and what edge would you have over your competitors? When you bounce your idea off a friend or relative or consultant, aim to get honest feedback NOT a "feel good" response! If flaws have become apparent, go back to the drawing board before taking the next step. By evaluating your idea, you get a better grasp of what you are aiming for. At the same time, people whom you trust can help you build the idea further and grow your company. See Evaluating Your Business Idea Other Considerations Think about how you're going to advertise or promote yourself and your product / service? Have you taken into consideration all the costs involved in establishing a business? What sort of a business structure are you going to put in place - sole proprietorship / partnership? Have you chosen the name of your company? Think about the purpose of the name and how it identifies with what you're doing. What about your corporate image? Think about a logo, colours, typeface etc.  The manner in which the image of your company is presented to the public via business cards and letterheads is important. The impression people make of your company is often based on your stationery ie. good, bad or indifferent. Exploit the potential of your company's image and make sure you convey a good impression.   Check this out for more info on starting a business Read: Management and Company Formation in Malaysia, Ch.1, Choice of Business, Ch.2 "How to Incorporate/Register New Companies, Ch.3 "Directors, Ch.4, Company Secretary. Ref: Guidelines, Name Search, Registration etc Choosing a Business Name

Steps towards incorporating a company in Malaysia Business Formats Before setting up your business, you should consider whether it is going to be a sole proprietorship or a partnership. There are advantages and limitations in both that you would have to consider. A sole proprietorship established by an individual. You choose to run the business on your own. A partnership by two or more (but not more than 20) persons; A company established by a local or foreign company that is registered under the Companies Act 1965. Company Structure Once you have decided on your business format you could choose to operate one of four types of companies are provided for under the Companies Act, 1965: i. Limited by shares - the personal liability of its members is limited to the    par value of their shares; ii. Limited by guarantee - members guarantee to meet liability up to a     specific amount if the company ceases operations; iii. Unlimited company - no limit to the members' liability; and iv. Company limited both by guarantee and shares. How to register your Company? Apply for the Name Obtain a Declaration  -- of Directors, Subscribers and Secretary(ies) Complete and lodge the Incorporation Documents Visit:  www.ssm.gov.my Steps To Incorporate A Company The key players in an application to incorporate a company are the entrepreneur and the Company Secretary.  The following will help you navigate through the process.     1. Application for a name search to the Registrar of Companies (ROC) 2. Name Accepted     3. Lodge the following documents with the ROC together with relevant fees     within three months from the date of approval: Memorandum of Association Articles of Association Statutory Declaration of Compliance, Statutory Declaration by a person before appointment as a director, or by a promoter before incorporation of a company.

Basic company registration forms Following are some of the basic registration forms for incorporating a company in Malaysia. Whilst your Company Secretary would handle its submission, you would have to be aware of its details and your obligations. Form 9 - Certificate of Incorporation of Private Company Form 24 - Return of Allotment of Shares Form 44 - Notice of Situation of registered Office and Office Hours and particulars  of Change Form 49 - Returns giving particulars in register of directors, managers and secretaries and changes of particulars

Requirements of a Locally Incorporated Company A locally incorporated company should comply with some standard requirements. Make sure your company: Has a registered office in Malaysia, where all books and documents required under the provisions of the Act are kept. Does not hold shares in its holding company.  Has at least two directors who reside in Malaysia. The director does not have to be a shareholder. Your Company Secretary should be resident in Malaysia. Your Company Auditor should also be resident and operating in Malaysia.

 

Government incentives The Government offers a number of incentives for companies involved in high technology, information and communication technology (ICT) and for the Multimedia Super Corridor (MSC Malaysia). Incentives for High Technology companies These are defined as companies that are involved in promoting activities or products in areas of new or emerging technologies. They are eligible for: Pioneer Status with full tax exemption for a period of 5 years and Investment tax allowance of 60% on qualifying capital expenditure incurred within a 5-year period.   Incentives for ICT Incentive for software development - Companies that develop both original and/or undertake to modify existing software are eligible to apply for Pioneer Status. Incentives for the use of Information Technology (IT) - Computers and IT assets are given an initial allowance of 20% and an annual allowance of 40%. Other incentives include single deduction on operating expenditure, purchase of new computers and contributions in cash or kind for ICT projects at community level. Incentives for MSC Malaysia Companies with MSC Malaysia Status are allowed to operate tax-free for 10 years or enjoy a 100% investment tax allowance, apart from other benefits and incentives backed  by the Malaysian Government's Bill of Guarantees. More information at:  www.mida.gov.my Grants

Securing your idea / invention An idea or invention must be protected, especially if it is original and has great potential. If it were not secured, it would become public domain and can be used by anybody who sees its potential. There are 3 ways in which ideas and products can be protected, namely, through patents, copyrights and trademarks. Patents - There are Patent Lawyers who can help you patent an invention. Patents, like copyrights, will expire. Copyrights - A copyright gives you the rights to expression or form. A copyright is only effective when the word "copyright" is used together with the year and name of the copyright owner. Trademarks - Unlike Patents and Copyrights, trademarks do not expire, especially if you continue to keep them in the public eye. Trademarks like patents, should be registered in every country that you wish to use it in. For more information, visit: www.sirim.my/ip