Setting Up a Sole Trader in Malaysia
Updated on Tuesday 24th January 2023
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Setting us a sole trader in Malaysia requires only a few simple steps for registration. This is why this business form is a popular one for young entrepreneurs or for those who have just decided to start their own business and become self-employed.
At our law firm in Malaysia, we can provide adequate legal advice regarding the liabilities that arise when deciding to open this type of business.
The sole proprietorship is the first option for those who want to start a small business. This business is run by the founder himself and there is no distinction between the company and the individual. This means that the sole proprietor is liable for all of his assets.
The sole trader is the simplest business form in Malaysia and also the easiest to set up. Tax obligations also arise for these self-employed individuals who derive income from the country and spend more than a certain amount of days in Malaysia during each tax year.
One of the experts at our law firm in Malaysia can give you specific details about taxation for sole proprietors and information about the double tax treaties and how or if they apply if you are a foreign investor in the country.
Citizens who want to apply for residency in Malaysia can discover the services offered by our lawyers specialised in immigration issues. Thus, they will assure the clients that all the necessary documents are prepared properly. Also, they will be in permanent communication with our lawyers to know at what stage the respective process is. What is good to know is the fact that residency can be obtained for an indefinite period, meaning that you no longer need to apply for permanent residency after the temporary one.
The sole trader is an advantageous business form for certain investors. It is usually the first step for those who want to provide consulting services, small traders, and entrepreneurs. This business form needs to be registered with the Companies Commission. The registration needs to take place within 30 days following the commencement of the business.
Alternatively, investors who are just starting a new business and have a limited budget can form a partnership with another investor with whom they share the same business goals. This business type is different from the sole proprietorship although it allows for a different degree of investment opportunities. One of our lawyers in Malaysia can tell you more about how to transform one business form into another.
You can find out more about other types of legal entities in Malaysia from our experts. If you are in need of legal advice on how to invest or open a company in the country please do not hesitate to contact our lawyers in Malaysia.
At our law firm in Malaysia, we can provide adequate legal advice regarding the liabilities that arise when deciding to open this type of business.
Reasons to open a sole proprietorship in Malaysia
The sole proprietorship is the first option for those who want to start a small business. This business is run by the founder himself and there is no distinction between the company and the individual. This means that the sole proprietor is liable for all of his assets.
The sole trader is the simplest business form in Malaysia and also the easiest to set up. Tax obligations also arise for these self-employed individuals who derive income from the country and spend more than a certain amount of days in Malaysia during each tax year.
One of the experts at our law firm in Malaysia can give you specific details about taxation for sole proprietors and information about the double tax treaties and how or if they apply if you are a foreign investor in the country.
Citizens who want to apply for residency in Malaysia can discover the services offered by our lawyers specialised in immigration issues. Thus, they will assure the clients that all the necessary documents are prepared properly. Also, they will be in permanent communication with our lawyers to know at what stage the respective process is. What is good to know is the fact that residency can be obtained for an indefinite period, meaning that you no longer need to apply for permanent residency after the temporary one.
Running a sole trader in Malaysia
The sole trader is an advantageous business form for certain investors. It is usually the first step for those who want to provide consulting services, small traders, and entrepreneurs. This business form needs to be registered with the Companies Commission. The registration needs to take place within 30 days following the commencement of the business.
Alternatively, investors who are just starting a new business and have a limited budget can form a partnership with another investor with whom they share the same business goals. This business type is different from the sole proprietorship although it allows for a different degree of investment opportunities. One of our lawyers in Malaysia can tell you more about how to transform one business form into another.
You can find out more about other types of legal entities in Malaysia from our experts. If you are in need of legal advice on how to invest or open a company in the country please do not hesitate to contact our lawyers in Malaysia.