A Simple Guide to Starting a Business in Malaysia

March 7, 2025 By Shabab Al Sharif

Malaysia is a thriving business hub in Southeast Asia, offering numerous opportunities for entrepreneurs. The government provides various incentives, making it an attractive destination for new businesses. If you’re planning to start a business in Malaysia, follow this step-by-step guide for a successful startup.


Step 1: Choose the Right Business Idea

✅ Conduct market research to identify high-demand businesses.
✅ Popular businesses: Restaurants, Construction, Trading, E-commerce, Tourism, IT Services.
✅ Plan your business based on your skills and expertise.


Step 2: Register Your Business

✅ Malaysia has three main business structures:
1️⃣ Sole Proprietorship – Small personal businesses.
2️⃣ Partnership – Business with two or more partners.
3️⃣ Sdn. Bhd. (Private Limited Company) – Best for large-scale businesses.

✅ Register your business with SSM (Companies Commission of Malaysia).
✅ Obtain necessary business licenses (MBSJ, DBKL, Halal certification, etc.).


Step 3: Open a Business Bank Account & Tax Registration

✅ Set up a corporate bank account.
✅ Register with LHDN (Tax Authority) for business taxation.
✅ Manage GST & SST (Sales & Service Tax).


Step 4: Choose a Business Location & Setup

✅ Rent an office or retail space in a prime location.
✅ For online businesses, create a website & social media presence.
✅ Purchase the necessary inventory and business equipment.


Step 5: Marketing & Customer Growth Strategies

Digital Marketing: Use Facebook, YouTube, Instagram & Google Ads.
Networking: Join business associations and industry events.
Provide quality products & customer service to retain loyal clients.


Step 6: Visa & Work Permits (For Foreign Entrepreneurs)

✅ Foreigners can apply for MTEP (Malaysia Tech Entrepreneur Program) or DP10 Employment Pass.
Apply for an Expatriate Quota to hire foreign employees.


Step 7: Business Expansion & Success Tips

Focus on customer satisfaction.
Plan financial investments wisely.
Adopt new technologies & modern marketing strategies.
Monitor financial reports regularly.