Open an Air-Conditioning Installation Business in Malaysia

Updated on Tuesday 15th January 2019

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Investors who open an air-conditioning business in Malaysia have access to a high-demand market as air conditioning is one of the main appliances found in homes throughout the country. The urbanization level in Malaysia, as well as the climate, have created a favorable business niche for investors interested in offering air conditioning services. Because these devices are usually found as standard facilities, especially in new houses, the field presents opportunities for companies that handle not only the installation but also the maintenance and repair.
Our team of company formation lawyers in Malaysia can assist investors who want to start an air conditioning business. We can help you choose the business structure, handle the incorporation procedure as well as with the actual company registration process. Moreover, we can provide ongoing assistance and legal advice for established businesses.

Costs for opening an air-conditioning installation business in Malaysia

Air conditioning businesses can provide various types of services related to this popular home appliance. While some choose to focus on maintenance and repair, others will provide the air conditioning installation services. This means that the Malaysian company that offers these services will generally only handle the installation of new units. This means that investors who open this type of business can be involved with constructors, so as to install the units in newly constructed residential and office buildings.
An advantage of opening an air conditioning business in Malaysia is the fact that both individual clients and corporate clients will request these types of services, as air conditioning use is widespread in all Malaysian cities. When starting a company that offers these types of services, investors can include the following start-up costs:
  • company formation costs: these will include the fees for drawing up the company formation documents, notary and legal fees as needed;
  • company registration costs: included here are the registration fees imposed by the Companies Commission in Malaysia; can also include the fees for additional permits;
  • the setup costs: these will include those costs associated with renting or purchasing an office space that will be used as the company’s registered office (mandatory for registration).
  • equipment costs: all of the expenses associated with purchasing the tools and equipment used for air conditioning installation; can also include the fleet of vehicles.
Additional costs will include those for employment as well as the promotion of the new business (local advertising, website, etc.).

Assistance from a team of lawyers in Malaysia for company formation

When starting an air conditioning installation business, our team of company formation lawyers in Malaysia can help you during the entire business registration phase.
The private limited liability company is the most popular business form and it is also suited to investors who wish to open an air conditioning installation business. It requires only one subscriber who must hold a share of 1 MYR. For this type of company, the maximum number of shareholders is 50 and the legal entity must have at least one director (who will reside in the country but not necessarily be a citizen). 
Air conditioning services companies will need to submit an annual return and the financial statements as well as observe the taxation principles, with the main taxes for companies including the corporate income tax, the goods and services tax as well as others.
The air conditioning installation business includes both small companies as well as large firms. The first can start by offering their services to homeowners as well as small commercial buildings and as they progress, continue by offering packages for large commercial clients as well.  The service response time, as well as the prices, can make a difference and small companies can find a large pool of clients.
The climate in Malaysia, as well as in other Asian countries, makes it mandatory for homes and commercial buildings in cities to use air conditioning, leading to an increasingly higher usage percentage as well as demand for installation and repair work. An air conditioning business in Malaysia offers opportunities in terms of a diverse market from commercial clients to homeowners, the clients who have just moved into a new office or home will be looking to install this essential appliance. 
For more information on how to start a business, please feel free to contact the experts at our law firm in Malaysia. Our team offers complete legal services, tailored to the needs of local and foreign investors.