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Setting up a new business in George Town, Malaysia, involves an intricate process with several legal requirements to fulfill. These regulations are designed to assist in maintaining appropriate conduct and sufficient transparency with stakeholders. Some necessary steps include naming the business, registering with the Companies Commission of Malaysia (SSM), obtaining relevant licenses and permits, and adhering to tax regulations. Non-compliance with these legal procedures may result in penal consequences.
Launching a business entity entails intricate legal navigation, making it beneficial to hire a lawyer. A lawyer can guide you through the registration process, negotiate contracts, ensure your compliance with local and national laws, defend against potential lawsuits, protect your interests, and clarify tax requirements. In case of foreign ownership, understanding foreign investment law is crucial, where legal assistance becomes even more valuable.
The Malaysian law comprises various components impacting new business formation, including The Companies Act 2016 (defines procedures for businesses), The Goods and Services Tax Act 2014 (outlines tax obligations), and local city ordinances (permits and licenses). If involving foreign elements, Foreign Investment Committee guidelines are also relevant.
The suitable legal structure depends on individual business dynamics and may range from Sole Proprietorship, Partnership to Private Limited Company. A lawyer can provide guidance given your specific business circumstances.
A director must comply with the Companies Act 2016 involving fiduciary duties, proper account maintenance, annual return submissions, and acting in the company's best interests.
You can protect intellectual property by registering through the Intellectual Property Corporation of Malaysia (MyIPO). You should also create confidentiality agreements, trademark your logo, patent your products, and copyright your original works.
Yes, according to the Companies Act of 2016, foreigners can own 100% of the company shares in most sectors, unless regulations specify otherwise.
Businesses are required to pay corporate tax, sales and services tax, and possibly, import and export duties depending on the nature of the business. All businesses should be registered with the Inland Revenue Board of Malaysia (LHDN).
The following governmental bodies can provide additional information: The Companies Commission of Malaysia (SSM), The Inland Revenue Board of Malaysia (LHDN), The Malaysian Investment Development Authority (MIDA), and The Intellectual Property Corporation of Malaysia (MyIPO).
If you require legal aid in new business formation, consult with a corporate lawyer familiar with Malaysian law. Legal aid can also be sought from law firms specialising in corporate and commercial law. Proactively plan and adhere to the regulations to avoid future legal intricacies and to ensure smooth conduct of your business operations.
