Open a Vehicle Maintenance and Repair Business in Malaysia

Updated on Wednesday 20th February 2019

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Car repair shops in Malaysia offer various types of services related to the maintenance of vehicles. They will offer solutions for manufacturing defects but also for general and scheduled maintenance as well as provide customers with the needed car parts for specific repair work. Most car users in Malaysia schedule regular maintenance services at these types of shops who offer general car repair services and investors who open this type of company can offer services to corporate and individual clients.

Our team of lawyers in Malaysia can help investors set up a business for maintenance and repair of motor vehicles. Our team will provide the needed incorporation services and the ongoing compliance assistance as needed by local and foreign investors in the country.

Steps for starting a motor vehicle maintenance and repair business in Malaysia 

When opening a company that offers maintenance and repair services for different types of cars and motor vehicles, it is important to define the scope of these services and hire the qualified staff to handle the repair work. Simple services include those that relate to oil and tire changes while ones that are more complex include engine maintenance and electrical services or repair work. For the latter, businesses will need to hire experienced and qualified electricians and other specialists.

One option when setting up a business for the maintenances and repair work of motor vehicles in Malaysia is to purchase an existing shop. This can be done through a company merger but not necessarily. When a company owner decides to sell his business, a new owner can purchase both the warehouse/building where the shop is located and the tools and equipment. For this purpose, our team of attorneys in Malaysia can help you conclude the needed agreements and make all of the legal arrangements for the transfer of ownership.

Auto repair and maintenance businesses that ate official representatives of vehicle manufacturers must obtain the relevant affiliation documents. In some cases, special permits and licenses may also be required.

Another option for investing in the motor vehicle repair and maintenance sector is to enter into a franchise. This means that an entrepreneur who intends to start this type of business in Malaysia will acquire the franchising rights from an international company and open the franchise in Kuala Lumpur or in another city. Investors should know that while there are significant business start-up costs in each case, the franchising fees could be significant and investors should carefully consider this option. Those entrepreneurs who have the capital for entering into a franchise will enjoy the recognition and the marketing advantages offered in this particular situation.

Steps for opening a company in Malaysia 

When deciding to open a company for the repair and maintenance of motor vehicles, investors need to observe the general steps for company formation in Malaysia as well as some that are specific to this business sector. Below, we present the main seven steps or decisions that investors need to make. For detailed information, entrepreneurs can always reach out to our team of lawyers in Malaysia.
  1. Choosing a type of company: this is a step that will determine the needed minimum share capital amount as well as the documents needed for incorporation; the private limited liability company is the most commonly used business form and it is also suited for motor vehicle repair and maintenance companies as the shareholders are only liable up to the invested amount.
  2. Choosing a company name: the new business will need to have an original business name and one that complies with the general regulations for company names; our lawyers can help investors perform a name check and name reservation.
  3. Preparing the company documents: the Articles of Association, together with other documents such as specimen signatures for the directors and any needed statements and identification documents are compiled to form the company’s registration file.
  4. Registering the company: once all of the documents are gathered, investors fill in the registration form and submit it to the Companies Commission of Malaysia or SSM.
  5. Deciding on a location: the location of the new business can be important and investors might want to look for a location that allows easy access to and from main roads and highways; while the company can also provide towing services, the headquarters should be based in a location that allows for fully equipping the shop for all types of repair work.
  6. Purchasing the equipment: specialized tools, a diagnostic machine, and car lifts are just some examples of the equipment generally found in a car repair shop; some items are only purchased according to the specific types of services provided.
  7. Hiring the staff: hiring qualified mechanics and electricians is important, as their expertise will determine the quality of the services offered to clients.

Opening a business for the maintenances and repair of motor vehicles is a straightforward process and our law firm in Malaysia can provide complete assistance to investors who wish to start this business. Contact us for more details on how we can assist you.