Malaysia is a great destination to invest among southeast Asian nations. The vibrant economy of Malaysia has attracted many foreign and local entrepreneurs. Many people who are looking for ideas to set up a small business in Malaysia, often seems to get confused about several aspects. For instance, what type of business they should begin with? or, how is the demand of a particular business in Malaysia etc. To deal with those queries, this article schemed out some of the popular and profitable small business ideas in Malaysia.
List of small business ideas in Malaysia
Here is a list of preferred small business ideas that you can easily start in Malaysia.
- Restaurant business
- Child care
- Laundry
- Coffee shop
- Travel Agency
- Tourism
- Fashion company
- Foods and Snacks corner
- Micro-finance services
- Petroleum business
- Internet business
- Professional services
- Smartphone and PC repair
- Real estate materials retailers
Restaurant business
We know that Malaysia being tourist country many foreign tourists visit every year. Tourist visit to enjoy vacation and ask after setup business and/ or business meeting. Restaurant is the best business in Malaysia if you may start smartly. Our suggestion is select location where restaurant will be taking place. Business location should be inside or near crowd area, beside school, market, shopping mall, Condo & office area. To reminder, you have to take permission of business license from SSM and Halal. You may hire multiple language knowledgeable staffs to serve customers.
Child care
It is noticeable that taking care of child is responsible whether father or mother but most of the family both of them are service holder. Who will take care of child? To keep that in mind, child care turned out to be a good business in Malaysia. When considering business ideas at a limited spectrum, this is relatively a clever concept that can inspire the small business investors to begin with in Malaysia.
Laundry
Another business that can be run in a brief scale in Malaysia is the Laundry business. So far it seems to be a successful in this nation and has good demands. You may setup business near residence area where demand for laundry is the most.
Coffee shop
Coffee shop is another good business in Malaysia. You may open small shop near crowd area, commercial area and shopping mall.
Travel Agency
Since Malaysia is a business center, many individuals visit for business purposes. This adds up to opportunities to open doors for travel organizations. And organizations that offer services for travelers indirect or directly. Along these lines, in the event that you are hoping to start a business in Malaysia. it brings idea to begin with travel agency. It requires low capital, it’s anything but difficult to begin, and the profits are immense. This is a common small business idea in Malaysia.
Tourism
Malaysia plays host to a few a huge number of guests consistently. This leaves tremendous benefits make by investors in the nation’s tourism division. If the investor has prepared a big budget for opening a tourism business, they may build resorts or hotel. And offer their services to the tourist to invest again. Independent companies can likewise tap from the segment by offering products, services. And administrations that will help tourist as well. Along these lines, regardless of whether your financial plan is enormous or little. It can simply bring profit in Malaysia’s tourism division. It’s another small business idea that you can start and generate revenue.
Fashion company
Malaysians, similar to each other individuals, loves fashion. They indicate awesome and it helps them express what their personality is. In spite of the fact there are many form outlets spread everywhere throughout the nation. There is enough space for new investors to make profit Malaysia. If by any chance investors pay interest in opening a fashion retail store, it is the best to sell local design. As so, it is advisable to do a research if you are not a native of Malaysia.
Foods and Snacks corner
Considering small business ideas in Malaysia, Food and snacks sell off pretty good in this country. This means that there are enormous open doors for organizations. It is open who show interest in selling fast foods or snacks such as yogurt, ice cream or cakes. Beginning a nourishment business is simple and requires minimal capital. In this way, you will earn profit from this business whether local or foreigner.
Check out the list of major food companies in Malaysia.
Micro-finance services
New organizations, particularly private companies are springing up day by day in Malaysia. Furthermore, to continue operating in the long run, these organizations need financing. That aid can get from micro-finance banks or finance institutes. Along these lines, micro-finance business is definitely a good opportunity for businesses. If you have the capital needed to open these types of services, you may start operating this business. Anyway, collect an experience in banking and finance before starting the business.
Petroleum business
Daily usage items produced from oil and gas sells out well in Malaysia. Also, setting up this business does not need you to be a millionaire. In fact, it only requires a few thousand dollars to begin this business. With a couple of thousand dollars, you can be a retailer for different oil and gas items. Retailer for example, kerosene and natural gas. What’s more is that, if you have a big capital, you may set up a filling gas station that will give you a huge revenue.
Internet business
Many people are getting peace to accessible in online business now a day. Most of students of undergrads and graduates are doing different online businesses. For example, of business are web architecture, independent writer and professional blogging.
Check out how do start an online business in Malaysia?
Professional services
Many new independent ventures developing every single day. All organizations need the expertise bookkeepers, Engineers etc. to handle jobs. Whereas household demands are for workers such as painter, carpenter, woodworkers, plumbers etc. Expertise guy can set up this business service and start earning profits. As a founder of company at a small scale, you may start it if you are skilled with building tools and household utensils.
Smart phone and PC repair
Almost everyone in this entire world contains a smart phone and a computer. This shows that the opportunity for business in fixing devices is huge. Individuals would prefer to repair their devices rather than discard after damaged. If you have a talent or experience for fixing gadgets, here’s a brilliant open door for you to make profit. Therefore, this can easily be a good small business idea in Malaysia.
Real estate materials retailers
Another great small business can be all round real estate sector. Real estate business itself may ask for a huge capital, but retailing raw materials for such sector is way more convenient to start with. Moreover, the business turnout supposes to be impressive in this country, where infrastructure developments are highly prioritized. Such retail business usually evolves around construction raw materials ranging from bricks, sands, rods, woods steel etc. to heavier machineries and building safety tools and utilities.
Other types of businesses in Malaysia
- Electricians and refrigerator engineers supply.
- Open super shop near busy place or inside of mall area.
- Open fitness training center.
- Gym and bar business.
- Fruit and coffee shop.
- Gents and lady’s parlor.
- Property rent and sale agent.
- Pet foods business.
- Intercontinental food trades.
- Printing, card, signboard & chop business.
Proprietorship & Sdn Bhd Business Registration Malaysia
There are two types of businesses can register as law 1) Proprietorship 2) Sdn Bhd (Limited Liability). Local businessmen like to register proprietorship as easier and liability free. On the other hand, Sdn Bhd business is wide open for local and foreigners. One person is all-in proprietorship business where no liability and freedom of business and business tax is same as Sdn Bhd. No shares of the company are allocated in proprietorship companies whereas shares are purchased from Sdn Bhd as director and shareholder. Multiple (maximum 50) shareholders can buy shares of the company and perform duties as shareholders and directors by law. Tax & annual return must submit by time of Sdn Bhd companies same as proprietorship businesses.
Steps of business registration
- Name search
- Appoint company secretary by law
- Documents preparation
- Submit documents to SSM
- Receive business registration copies
- Make tenancy agreement
- Eligible to open bank account
- Apply for signboard and premise license
- Apply for other licenses, if need, like export, import, WRT
- Apply for employment visa by ESD registration
Name search
To register a business name search is first step as name is identity of every businesses. Ask Company Secretary to find name as propose names if available. Each name search is costly, RM 50 and as similar name is rejected always so be careful. Share directors’ detail, business activities and propose name to reserve name through SSM. Business registration will startup after approval of business name by SSM.
Appoint company secretary by law
To appoint company secretary in every country is not mandatory but it is must in Malaysia for Sdn Bhd businesses whereas proprietorship business is exempted. Company secretary is responsible to prepare documents of new business registration in Malaysia. A form is given to fill up and sign by the director (s) where basic information is asked for like name of directors, address, contact number, email, business nature etc.
Documents preparation & submission
Secretary will submit all draft copies to SSM by online after making payment of RM 1200 (approximately including name reservation). Maximum three nature of businesses can be added in one registered business as policy of SSM. Secretary will receive notification is anything need to change otherwise straight submission copies will be registered.
Receive business registration copies
Now business incorporation is completed, and incorporation, directors’ detail and articles are ready to collect. Buy copies from Mydata SSM if need further forms in business purpose as all other forms are payable.
Tenancy agreement
Virtual address is used for most of the businesses initially who does not have physical office. Now, it is the time to start business so, tenancy agreement is must to be prepare with stumping. Sometimes, partial rent (sublease) is accepted by bank but not fare.
Open bank account
Bank account opening as Malaysian is not an issue in local and foreign banks. But, opening account is issue as foreigner as bank ask for work permit and/ or residence copy. Do not worry as foreigner, visit office of S & F Consulting Firm Asia Sdn Bhd and consult with expert. Account will be opened for sure (100%) without work permit in foreign banks, HSBC, OCBC, UOB and Standard Chartered Bank.
Signboard, premise, export, import, WRT license
DBKL and MBPJ provides signboard and premise license to put signboard of the business. It is an offence if business is startup with licenses and penalty if delay of renewal. To apply of export and import license must prepare documents as 1). Invoice 2). Business sample 3). Product detail information 4). Port selection. In terms of WRT application contact expert as procedure is bit complicated and time consume. Export import and WRT license application takes around 3-4 months each.
ESD registration
To apply of work and residence permit as businessmen must register the business through ESD. Follow instructions of application and arrange supporting 9-10 number of papers. Contact S & F team to guide your registration of business and apply for work permit.
Business registration in Malaysia is easier as anyone can open by maximum 5 working days. Bank account open is easier too and manpower hiring is hassle free. Being Malaysia is business hub of Asia, suitable environment of business to do and easier than Singapore. Roads, electricity, lands, ports, administration are excellent for business.
FAQ –
Can foreigner open a small business in Malaysia?
Yes! foreigners are allowed to start both small and large size venture in Malaysia.
How can a foreigner start a small business in Malaysia?
As foreigner you should follow the Steps below to register a company in Malaysia:
- Company name approval.
- Registering the business governed by SSM.
- Hiring company secretary.
- Collect business license, signboard license, WRT license, and Halal license.
- Arrange premises agreements.
- SOCSO and EPF.
- Export/ import license (if required)
- ESD registration and visa application.
Who is the responsible government body to register a company in Malaysia?
Malaysia Company Commission is better known as Suruhanjaya Syarikat Malaysia (SSM) is the responsible government body to register a company in Malaysia.
What are some most successful businesses?
Malaysian most profitable small businesses are:
- Tourism business
- Catering Services
- IT Business
- Business Consulting
- Cleaning Services
What business is best to start in Malaysia?
There are lots of good business in Malaysia where you can invest. Some of the popular business are: restaurant business, real-estate business, coffee shop, manufacturing industry etc.
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How to start a low budget business in Malaysia 2020
Follow these easy steps for starting a Malaysian business.
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For entrepreneur’s in Malaysia:
How to become a successful entrepreneur in Malaysia?
How to start a business in Malaysia by online?
Why Set Up Your Business in Malaysia?
Topics you might find useful for registering a business:
Details about process of registering a company in Malaysia by SSM
Rules for company formation in Malaysia
All of business licenses in Malaysia – WRT, Import, Sign Board, GST, SOCSO