Business owners incorporating in Malaysia can look forward to several benefits: a convenient and efficient registration process, access to a large consumer market, and Malaysia-specific tax incentives. Below we give special attention to the first of these benefits by going over the steps you need to take if you plan to register your business in Malaysia.

Step 1: Choose a Business Structure

The four most common structures are sole proprietorship, partnership, limited liability company (LLC), and public limited company. Of these four, the most popular is the private limited company, or “Sendirian Berhad” as it is known in Malay.

Step 2: Choose Your Business Name

Your business name must be unique and not already taken by another company. The Central Bank of Malaysia is responsible for registering business names. You can check to see if your preferred name is available on their website.

Step 3: Register Your Business

The next step is to register your business with the Companies Commission of Malaysia (SSM). This is a relatively straightforward process and can be done online. There are a few documents you’ll need to submit, including a completed application form, a copy of your business plan, and a copy of your business name registration. Make sure these documents are filled out correctly before submitting, as any errors could lead to delays. The registration process typically takes 1-2 days to complete.

To register, your business must have a physical address in Malaysia. This will be used for all official correspondence. You can choose to rent or purchase a physical space for your Malaysia address. If you do not intend to use your physical address beyond receiving official correspondence from the Malaysian government, you may consider using a virtual office service.

Step 4: Obtain a Business License

You can apply for a business license online or in person at your local licensing office. In addition to your business name, you will also need an address for your business as well as additional contact information.

Step 5: Open a Bank Account

You can open a business bank account at any of the major banks in Malaysia. You will need to provide your business registration documents to do so.

Step 6: Obtain a TIN

All businesses in Malaysia are required to have a tax identification number (TIN). This number is issued by the Inland Revenue Board and is necessary for filing taxes and applying for various licenses and permits.

Step 7: Obtain Necessary Licenses and Permits

Depending on the type of business you operate, you may need to obtain additional licenses and permits before you can begin doing business. Common licenses and permits include food and beverage licenses, building permits, and environmental permits. Medical licenses and licenses from the Malaysian Communications and Multimedia Commission (MCMC) are some of the other common licenses issued to businesses in Malaysia.

Step 8: Register for Taxes

All businesses in Malaysia are required to register and pay taxes. Taxes paid by businesses in Malaysia include corporate income tax, sales tax, and employer taxes. You will need to register with the Inland Revenue Board to comply with Malaysia’s tax requirements. The Inland Revenue Board will provide guidance on the specific taxes that your business is required to pay, as well as the forms and information that must be submitted.

Step 9: Registering with SOCSO and EPF

If you plan on hiring employees, you will need to register with the Social Security Organization (SOCSO). Employers in Malaysia are required to provide mandatory benefits such as health insurance and pension benefits. You will also need to register for the Employees Provident Fund (EPF), which is a mandatory savings plan for employees.

Step 10: Maintain Records

Businesses in Malaysia are required to maintain accurate and up-to-date records of their business transactions, including financial statements and tax returns. Failing to maintain accurate records can result in significant penalties and fines.

Final Thoughts

Incorporating a business in Malaysia is a straightforward process and can be completed in a relatively short amount of time. When taking an important legal undertaking like incorporation, we recommend consulting with a professional, such as an accountant or lawyer, to ensure that you are fully compliant with all regulations and requirements and to receive guidance on the specific requirements that apply to your business.

An investment memorandum, also known as a private placement memorandum (PPM), is a document that is used to provide information about a potential investment opportunity to potential investors. The investment memorandum is typically used by start-ups or early-stage companies that are seeking funding from private investors, such as venture capital firms or angel investors. It is an important tool for entrepreneurs, as it helps to communicate the value of the business and convince investors to provide funding. If you are an entrepreneur looking to create an investment memorandum, there are a few key considerations to keep in mind.

Define the purpose of the memorandum:

The first step in creating an investment memorandum is to define the purpose of the document. The purpose of the memorandum should be clearly stated in the introduction and should include information about the company, the product or service, and the funding that is being sought.

Provide an overview of the company:

The next section of the memorandum should provide an overview of the company, including its mission, vision, and values. You should also include information about the team, the business model, and the progress that the company has made to date. This section should give the reader a sense of the overall direction and goals of the company.

Describe the product or service:

The next section of the memorandum should describe the product or service that the company is offering. This should include a detailed description of the product or service, as well as information about the target market and the unique value proposition of the company. You should also include any relevant market research or data points that support the demand for the product or service.

Outline the funding request:

The next section of the memorandum should outline the funding request and the specific terms of the investment. This should include information about the amount of funding that is being sought, the valuation of the company, and the terms of the equity or debt that is being offered. You should also include any relevant financial projections or assumptions that support the funding request.

Describe the use of proceeds:

The next section of the memorandum should describe how the funds will be used. This should include a detailed breakdown of the planned expenses, as well as any milestones or benchmarks that will be achieved with the funding. This section should give the reader a sense of how the funds will be used to support the growth and development of the company.

Disclose any risks:

The next section of the memorandum should disclose any risks or uncertainties associated with the investment. This should include any legal, financial, or operational risks that the company is facing. It is important to be transparent and honest about the risks, as investors will want to understand the potential pitfalls of the investment.

Include relevant legal documents:

The final section of the memorandum should include any relevant legal documents, such as the articles of incorporation, bylaws, and any agreements or contracts that are relevant to the investment. It is important to include these documents to provide transparency and to ensure that the investment is legally sound.

Conclusion

An investment memorandum is a crucial tool for start-ups and early-stage companies that are seeking funding from private investors. By following the guidelines outlined above, you can create a compelling investment memorandum that effectively communicates the value of your business and inspires investors to take action. It is important to remember, however, that the investment memorandum is just one part of the funding process, and it is important to be prepared to answer questions and engage in a dialogue with potential investors. With a well-crafted investment memorandum and strong presentation skills, you can increase your chances of success and secure the funding that you need to grow and develop your business.

Malaysia is a rapidly growing economy that offers a favorable tax environment for businesses. With its stable political climate, well-developed infrastructure, and favorable policies for foreign investment, Malaysia has become a popular destination for multinational corporations and start-ups alike. While starting a business in Malaysia can be lucrative, it's also important for entrepreneurs to be mindful of their tax obligations and to take advantage of the tax relief opportunities available. In this article, we'll discuss the strategies businesses can employ to obtain tax relief in Malaysia.

1. Utilize Tax Incentives for Strategic Sectors
2. The Malaysian government offers a wide range of tax incentives to businesses operating in specific sectors. For example, businesses involved in manufacturing, biotechnology, and renewable energy may be eligible for tax exemptions, reductions, or allowances. To take advantage of these tax incentives, companies must meet certain criteria, such as investing a minimum amount in the country and committing to a certain number of years of operation. Before starting a business in Malaysia, it's essential to research the tax incentives available in your industry and ensure that you meet the eligibility criteria.
3. Opt for the Labuan International Business and Financial Centre
4. Labuan is a tax-free zone located in Malaysia that offers a variety of benefits to foreign businesses. Companies registered in Labuan are eligible for tax exemptions on their income, as well as a lower corporate tax rate. Additionally, businesses in Labuan can take advantage of a simplified tax regime, which includes a flat tax rate of 3% on net profits and no capital gains tax. To be eligible for these benefits, companies must be engaged in international business activities, such as trading or investment holding.
5. Take Advantage of Double Taxation Agreements
6. Malaysia has double taxation agreements (DTAs) with over 80 countries, which help to reduce the tax burden on businesses operating in both countries. The DTAs aim to prevent businesses from being taxed twice on the same income and provide for tax credits or reductions in the home country. To take advantage of DTAs, companies must first establish a presence in Malaysia and then register for tax in both countries. The DTAs also specify the types of income that are eligible for relief and the conditions under which relief can be claimed.
7. Make Use of Tax Deductible Expenses
8. Businesses in Malaysia can claim tax deductions on a wide range of expenses, including research and development, advertising and promotion, and employee training. To take advantage of these deductions, companies must keep accurate records of their expenses and ensure that they comply with the conditions set out by the Malaysian tax authorities. For example, expenses must be directly related to the company's business activities and must not be excessive.
9. Participate in the Malaysia My Second Home Program
10. The Malaysia My Second Home (MM2H) program allows foreign individuals to reside in Malaysia for an extended period. To participate in the program, individuals must meet certain financial criteria, such as having a fixed deposit in a Malaysian bank. Participating in the MM2H program can provide significant tax benefits, as individuals are eligible for tax exemptions on their foreign-sourced income. Additionally, MM2H participants can take advantage of Malaysia's favorable tax environment for retirees, which includes a lower tax rate on their income and exemptions on imported household goods.

In conclusion, Malaysia offers a favorable tax environment for businesses, with a wide range of tax incentives, lower tax rates, and double taxation agreements. To take advantage of these benefits, businesses must research the tax incentives available in their industry, establish a presence in the country, and keep accurate records of their expenses. Additionally, businesses can participate in tax-free zones, such as Labuan, or take advantage of tax deductible expenses. By employing these strategies,

Starting a business can be challenging and overwhelming, especially for those new to the world of entrepreneurship. One of the most common challenges that entrepreneurs face is navigating the complex and often a jargon-filled world of start-up terminology. In this article, we will provide a comprehensive glossary of common start-up terms that every entrepreneur should know.

Accelerator:

An accelerator is a program that provides start-ups with mentorship, resources, and networking opportunities to help them grow and scale their businesses. Accelerators are typically focused on a specific industry or sector, and they often offer funding in exchange for a small equity stake in the start-up.

Angel investor:

An angel investor is an individual who provides capital to start-ups in exchange for ownership equity. Angel investors are typically high-net-worth individuals who are looking to invest in early-stage companies and provide mentorship and guidance to the founders.

Bootstrapping:

Bootstrapping is the process of starting and growing a business with little or no outside funding. Bootstrapping can involve using personal savings, generating revenue from customers, or finding creative ways to finance the business.

Burn rate:

Burn rate is the rate at which a start-up is spending its available cash. Burn rate is an important metric for start-ups, as it can help them to manage their finances and make informed decisions about how to allocate their resources.

Capitalization table:

A capitalization table (or "cap table") is a spreadsheet that outlines the ownership structure of a company, including the types and amounts of equity that have been issued to founders, investors, and employees.

Convertible Note:

A convertible note is a type of debt instrument that can be converted into equity at a later date, typically when the company raises a round of funding. Convertible notes are often used by start-ups as a way to bridge the gap between seed funding and a Series A round.

Due diligence:

Due diligence is the process of thoroughly evaluating a potential investment or business opportunity. This can include reviewing financial statements, assessing the market potential of the business, and verifying the credibility of the founders and management team.

Equity:

Equity is ownership in a company. When an investor provides capital to a start-up in exchange for equity, they become a shareholder in the company.

Exit:

An exit is an event in which an investor or founder sells their stake in a company, typically through an acquisition or initial public offering (IPO).

Incubator:

An incubator is a program that provides start-ups with resources, mentorship, and workspace to help them get off the ground. Incubators are typically focused on a specific industry or sector, and they may offer funding in exchange for a small equity stake in the start-up.

Minimum viable product (MVP):

An MVP is a version of a product that has enough features to be viable for testing and validation with a small group of customers. MVPs are often used by start-ups to validate their product-market fit and gather feedback before launching a full product.

Pitch:

A pitch is a presentation that entrepreneurs use to pitch their business idea to investors or other potential partners. A pitch typically includes an overview of the business, a description of the product or service, and a plan for growth and profitability.

Pre-money valuation:

Pre-money valuation is the valuation of a start-up prior to raising a round of funding. Pre-money valuation is an important consideration for both entrepreneurs and investors, as it determines the amount of equity that is issued in exchange for capital.

Seed funding:

Seed funding is the first round of funding that a start-up receives. Seed funding is typically used to cover the costs of developing a prototype, conducting market research, and building a team. Seed funding can come from a variety of sources, including angel investors, venture capital firms, and crowdfunding campaigns.

Series A round:

A Series A round is the first round of institutional funding that a start-up receives. Series A rounds are typically larger than seed rounds and involve more formal terms and conditions, such as preferred stock and board seats.

Term sheet:

A term sheet is a document that outlines the terms and conditions of a potential investment. Term sheets typically include information about the amount of capital being invested, the valuation of the company, the rights and preferences of the investors, and the terms of the exit.

Venture capital (VC):

Venture capital is a type of funding that is provided to start-ups with the expectation of high returns on investment. Venture capital firms typically invest in companies that have the potential for rapid growth and a strong competitive advantage.

Conclusion:

Start-up terminology can be confusing and overwhelming, especially for those who are new to the world of entrepreneurship. By familiarizing yourself with the common terms outlined in this glossary, you can better understand the start-up ecosystem and make informed decisions about your own business.

The topic of funding for female founders has gained significant traction in recent years, as the issue of gender inequality in the workplace has come to the forefront of public consciousness. While women have made progress in terms of starting businesses and securing funding, there is still a long way to go. In this article, we will discuss the challenges female founders face in terms of accessing funding, and what can be done to address this issue.

Challenges faced by female founders

Securing funding can be a daunting task for any entrepreneur. However, female founders face unique challenges during this process separate from their male counterparts. Some examples of funding challenges unique to female entrepreneurs include:

• Unconscious bias on the part of investors
• Underrepresentation in the investment community
• Different expectations regarding qualifications
• Difficulty finding mentors or advisors
• Access to fewer resources

Unconscious biases and underrepresentation both lead to female founders being overlooked by investors. As a result, women often receive significantly less funding than men, even when they have similar qualifications and business ideas. The inability to receive adequate funding creates a vicious cycle as women who do not receive funding struggle to gain traction and build successful businesses, making it even harder for them to attract investment in the future.

The qualifications women need to meet when seeking funding also pose a unique barrier. Investors often place higher expectations on female entrepreneurs’ track records, i.e., the ability and extent to which they can demonstrate success or their connections in their specific industry. Meeting these expectations can be particularly challenging for women starting their first business. Women often will have not had the same opportunities as their male counterparts to build up their qualifications and experience.

These challenges can make it harder for women to succeed with startups and can contribute to the overall gender gap in terms of funding and success.

What can be done?

• Increase awareness and understanding regarding the challenges women face
• Increase representation of women in the investment community
• Promote initiatives and programs that help female founders secure funding
• Encourage individual investors to target women-led businesses when investing

The first step in addressing the challenges female founders face, is to increase awareness about these challenges. This can be done through education and training programs, media campaigns, and other channels. In order for effective action to be taken, people must first be aware of and understand the problem.

Overcoming the inequities faced by female founders requires women to be better represented in the field. The best way to do this is by directly increasing the number of women in the investment community. This can be done through initiatives that encourage more women to pursue careers in venture capital or other areas within the industry. Making women a part of investment committees and other decision-making bodies is another way to promote representation of women.

The challenges women face specific to financing and entrepreneurship can also be approached directly. There are numerous initiatives and programs specifically designed to help female founders secure funding, for example, accelerators and incubators that focus on supporting women-led businesses.

Individual investors can also help to address the issue by actively seeking out and investing in women-led businesses, either individually or as participants in funding groups. Investors can also act as advocates. Speaking out about the importance of supporting female founders, encouraging others to do the same, and working to promote diversity and inclusion within investment firms and other organizations are all actions a single person can undertake. Taking a proactive stance on these issues helps create a more encouraging environment for female founders.

Final Thoughts

In addition to the efforts describe above, it's important that the larger landscape of investment and entrepreneurship becomes more accessible for female founders. Initiatives such as mentorship programs, networking events, and other resources can help women to connect with each other and with potential investors and advisors. Providing women with the support and resources they need helps level the playing field and increases the chances of success for female-led startups.

The ability for female founders to secure funding is an important issue, and there is still a long way to go in terms of achieving gender equality for female entrepreneurs. However, by taking steps to address the challenges that women face and working towards creating a more inclusive environment, we ensure that we’re moving in the right direction.

If you're a female founder looking for financing, consider applying on the Jenfi homepage. At Jenfi, our financing offer depends on your revenue and is non-dilutive, meaning you keep all your business equity.