Malaysian Founders
Foreign Founders
How Do I Start My Own Startup?
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Step 1: Refine Your Business Plan
How do I refine my business plan?
Your entrepreneurial journey commences with a fundamental inquiry: "What motivates you to start a business?" While seemingly straightforward, this question carries profound significance, shaping your intentions and driving forces. As you transition from idea to realization, it is essential to carefully assess your business concept's feasibility regarding time commitment, required investment, and potential returns. While following your passion is commendable, it is equally crucial to evaluate its profitability and competitive edge. For instance, if baking is your passion, conduct a comprehensive analysis of local bakeries to uncover avenues for differentiation. Once you have clarified your business's purpose, delve into the following queries:
1. What are your areas of expertise or passion?
2. Which aspects of the business do you find less appealing?
3. Who constitutes your target demographic?
4. How can your products or services stand out in the market?
Addressing these questions lays a solid foundation for crafting a robust business strategy.
1. What are your areas of expertise or passion?
2. Which aspects of the business do you find less appealing?
3. Who constitutes your target demographic?
4. How can your products or services stand out in the market?
Addressing these questions lays a solid foundation for crafting a robust business strategy.
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Step 2: Understand Your Competitors And The Market
How do I understand my competitors and the market?
While focusing solely on product development may be tempting, it is crucial to prioritize understanding your market and competitors. Prospective lenders, investors, and collaborators will seek clarity on your unique value proposition. In a saturated market, exploring innovative angles becomes imperative. For example, if you are providing car wash services, consider door-to-door convenience as a distinctive approach.
Conducting surveys, questionnaires, and interviews can provide valuable insights into your target audience's preferences and needs. By gathering these insights, you will be better equipped to tailor your business to meet customer demands.
Conducting surveys, questionnaires, and interviews can provide valuable insights into your target audience's preferences and needs. By gathering these insights, you will be better equipped to tailor your business to meet customer demands.
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Step 3: Conduct A SWOT Analysis
How do I conduct a SWOT analysis?
A SWOT analysis can help you make smarter decisions, plan better, and reach your goals faster. If you use it carefully and collaboratively, it can deliver new insights on where your business currently is and help you to develop exactly the right strategy for any situation.
By doing a SWOT analysis, you can:
1. Use your strengths to stand out from your competitors
2. Address your weaknesses before they hurt you
3. Find and seize new opportunities
4. Prepare for and avoid potential threats
For an example of a SWOT analysis, you may refer here:
https://www.semrush.com/blog/swot-analysis-examples/?kw=&cmp=AA_SRCH_DSA_Blog_EN&label=dsa_pagefeed&Network=g&Device=c&utm_content=683768476776&kwid=dsa-2264713437525&cmpid=18361936995&agpi
By doing a SWOT analysis, you can:
1. Use your strengths to stand out from your competitors
2. Address your weaknesses before they hurt you
3. Find and seize new opportunities
4. Prepare for and avoid potential threats
For an example of a SWOT analysis, you may refer here:
https://www.semrush.com/blog/swot-analysis-examples/?kw=&cmp=AA_SRCH_DSA_Blog_EN&label=dsa_pagefeed&Network=g&Device=c&utm_content=683768476776&kwid=dsa-2264713437525&cmpid=18361936995&agpi
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Step 4: Register Your Business
For eligibility of setting up a business in Malaysia, you may refer here:
https://www.ssm.com.my/Pages/Legal_Framework/GUIDELINES/4.-Guidelines-For-Incorporation-Of-A-Local-Company.pdf
https://www.ssm.com.my/Pages/Legal_Framework/GUIDELINES/4.-Guidelines-For-Incorporation-Of-A-Local-Company.pdf
Having a valid business license is essential for starting a business in Malaysia. It includes licenses, registrations, permits and approvals.
Business licenses can be categorized into 3 different logical groups, namely:
1. General licenses
2. Sector Industry Specific licenses
3. Activity Specific licenses
For more information on business license, refer here:
https://www.malaysia.gov.my/portal/content/30342 or contact your company secretary for further guidance.
Business licenses can be categorized into 3 different logical groups, namely:
1. General licenses
2. Sector Industry Specific licenses
3. Activity Specific licenses
For more information on business license, refer here:
https://www.malaysia.gov.my/portal/content/30342 or contact your company secretary for further guidance.
Steps when registering your business include:
How do I decide on my business type/legal structure?
There are several different types of business entities available in Malaysia. Every business entity has its own compliance requirements, tax structure etc. The following are the common forms of business structure in Malaysia:
1. Sole Proprietorship (By an individual)
2. Partnership (By two or more, but not more than 20);
3. Limited Liability Partnership (By two or more persons); or
4. Company - Private Limited Company (Sdn. Bhd.), Public Limited Company (Bhd), Foreign Company registered under Section 562 of Companies Act 2016.
It is mandatory for every company in Malaysia to appoint a Company Secretary within 30 days from the date of incorporation. Your company secretary will then guide you through the process of incorporating your startup.
For more information on the type of businesses in Malaysia, refer here:
https://www.ssm.com.my/Pages/Register_Business_Company_LLP/Business/Business-Document/Comparisons-of-business-entities-in-Msia.pdf
1. Sole Proprietorship (By an individual)
2. Partnership (By two or more, but not more than 20);
3. Limited Liability Partnership (By two or more persons); or
4. Company - Private Limited Company (Sdn. Bhd.), Public Limited Company (Bhd), Foreign Company registered under Section 562 of Companies Act 2016.
It is mandatory for every company in Malaysia to appoint a Company Secretary within 30 days from the date of incorporation. Your company secretary will then guide you through the process of incorporating your startup.
For more information on the type of businesses in Malaysia, refer here:
https://www.ssm.com.my/Pages/Register_Business_Company_LLP/Business/Business-Document/Comparisons-of-business-entities-in-Msia.pdf
How do I decide on my business name?
Every business needs a name. A good business is more than just a brand name – it is also part of your marketing strategy and brand identity. Run a name check after you have handpicked the business name:
1. Submit the prescribed form (PNA42 form) to SSM; and
2. You need to pay the prescribed fee(s) for each name applied.
Once your business name has been approved, you will receive a Notice of Registration that will show that your company has been approved by the SSM.
For more information, refer here:
https://www.ssm.com.my/Pages/Services/Registration-of-Business-(ROB)/Registration/Guidelines%20for%20Business%20Name%20Application.pdf
1. Submit the prescribed form (PNA42 form) to SSM; and
2. You need to pay the prescribed fee(s) for each name applied.
Once your business name has been approved, you will receive a Notice of Registration that will show that your company has been approved by the SSM.
For more information, refer here:
https://www.ssm.com.my/Pages/Services/Registration-of-Business-(ROB)/Registration/Guidelines%20for%20Business%20Name%20Application.pdf
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Step 5: Register A Bank Account
How do I register for a bank account?
Choosing a bank account differs based on your needs.
Before selecting a bank to open your business account, it's crucial to consider various factors to ensure it aligns with your requirements:
1. Monthly fees
2. Range of services and facilities provided
3. Bank reputation
4. Availability of online banking
5. Minimum account balance requirements
6. Currencies supported for transactions
Before selecting a bank to open your business account, it's crucial to consider various factors to ensure it aligns with your requirements:
1. Monthly fees
2. Range of services and facilities provided
3. Bank reputation
4. Availability of online banking
5. Minimum account balance requirements
6. Currencies supported for transactions
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Step 6: Register For Your IP
Intellectual property protection in Malaysia comprises of patents, trade marks, industrial designs, copyright, geographical indications and layout designs of integrated circuits.
For more information on IP, refer here:
https://www.mida.gov.my/wp-content/uploads/2020/07/Chapter-7-Intellectual-Property-Protection-1.pdf
For more information on IP, refer here:
https://www.mida.gov.my/wp-content/uploads/2020/07/Chapter-7-Intellectual-Property-Protection-1.pdf
Trademarks are important as it provides exclusive rights and legal evidence for a company. To register or for more information on trademarks, visit:
https://www.myipo.gov.my/en/trademark_registration/#toggle-id-4-closed
https://www.myipo.gov.my/en/trademark_registration/#toggle-id-4-closed
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Step 7: Seek Out Funding If Necessary
How do I seek out for funding?
There are multiple funding options, including (but not limited to):
1. Crowdfunding- Crowdfunding leverages the collective effort of friends, family, customers, and investors to raise capital, primarily through online platforms and social media networks. It taps into a wide pool of individuals to amplify reach and exposure for fundraising initiatives.
2. Bootstrapping- Bootstrapping is when you use your own personal savings to fund your business. This is often the most common funding option for early-stage startups as it doesn't require giving up equity or taking on debt.
3. Venture Capital- Venture capitalists are firms that invest money in startups in exchange for equity. They typically invest larger amounts of money than angel investors and usually only invest in businesses that have high growth potential.
4. Angel Investors- Angel investors are individuals who invest their own money in startups in exchange for equity. They typically invest smaller amounts of money than venture capitalists, but they can be a good source of funding for early-stage startups.
5. Government Grants- Some government organisations offer grants, a form of non-dilutive funding where the money doesn’t require you to give up equity. The eligibility requirements vary depending on the programme, but there are typically a number of different grant programmes readily available for startups.
6. Small business loans- Small business loans can be a good option for startups that need a relatively small amount of money to get off the ground. If you have a solid business plan and good credit, you may be able to get a small business loan from a bank or other financial institution. However, loans typically come with interest and may need to be repaid within a set timeframe.
7. Accelerators & Incubators- Incubators and accelerators are programmes that provide resources and mentorship to early-stage startups. Many of these programmes offer funding in exchange for equity, so it's important to do your research before committing to one.
Startups should evaluate their business in order to decide which funding option suits them best. To find out more about the different funding options, check out our Government Funding page or Programmes page at www.mystartup.gov.my
1. Crowdfunding- Crowdfunding leverages the collective effort of friends, family, customers, and investors to raise capital, primarily through online platforms and social media networks. It taps into a wide pool of individuals to amplify reach and exposure for fundraising initiatives.
2. Bootstrapping- Bootstrapping is when you use your own personal savings to fund your business. This is often the most common funding option for early-stage startups as it doesn't require giving up equity or taking on debt.
3. Venture Capital- Venture capitalists are firms that invest money in startups in exchange for equity. They typically invest larger amounts of money than angel investors and usually only invest in businesses that have high growth potential.
4. Angel Investors- Angel investors are individuals who invest their own money in startups in exchange for equity. They typically invest smaller amounts of money than venture capitalists, but they can be a good source of funding for early-stage startups.
5. Government Grants- Some government organisations offer grants, a form of non-dilutive funding where the money doesn’t require you to give up equity. The eligibility requirements vary depending on the programme, but there are typically a number of different grant programmes readily available for startups.
6. Small business loans- Small business loans can be a good option for startups that need a relatively small amount of money to get off the ground. If you have a solid business plan and good credit, you may be able to get a small business loan from a bank or other financial institution. However, loans typically come with interest and may need to be repaid within a set timeframe.
7. Accelerators & Incubators- Incubators and accelerators are programmes that provide resources and mentorship to early-stage startups. Many of these programmes offer funding in exchange for equity, so it's important to do your research before committing to one.
Startups should evaluate their business in order to decide which funding option suits them best. To find out more about the different funding options, check out our Government Funding page or Programmes page at www.mystartup.gov.my
The information provided in this startup guide is for general informational purposes only. While we strive to ensure the accuracy and completeness of the content, we make no representations or warranties of any kind, express or implied, about the reliability, suitability, or availability of the information contained herein.
Starting a startup involves inherent risks, and success is not guaranteed. The guidance provided in this guide should not be construed as professional advice, and we recommend seeking the assistance of qualified professionals for specific business or legal matters.
We disclaim any liability for any loss or damage, including without limitation, indirect or consequential loss or damage, arising from reliance upon any information contained in this guide. Your use of this guide is solely at your own risk.
Starting a startup involves inherent risks, and success is not guaranteed. The guidance provided in this guide should not be construed as professional advice, and we recommend seeking the assistance of qualified professionals for specific business or legal matters.
We disclaim any liability for any loss or damage, including without limitation, indirect or consequential loss or damage, arising from reliance upon any information contained in this guide. Your use of this guide is solely at your own risk.
