Nota Keusahawanan Week 3 (Business Rules & Supports)

WEEK 3WEEK 3BUSINESS RULES &BUSINESS RULES &

SUPPORTSSUPPORTS

WEEK 3WEEK 3BUSINESS RULES &BUSINESS RULES &

SUPPORTSSUPPORTS

1.1. Business Formation In MalaysiaBusiness Formation In Malaysia2.2. Rule & RegulationRule & Regulation3.3. Business Supports & AssistancesBusiness Supports & Assistances

Lecture Content:Lecture Content:

1.1. Understand business entity govern to Understand business entity govern to Malaysian Law.Malaysian Law.

2.2. Understand rules and regulations need in Understand rules and regulations need in Malaysia.Malaysia.

3.3. Identify strength and weakness in business Identify strength and weakness in business entity selection.entity selection.

4.4. Be able to register business formation Be able to register business formation chosen.chosen.

5.5. Understand the business supports and Understand the business supports and assistances needed.assistances needed.

Learning Outcomes:Learning Outcomes:

Establishment of business Establishment of business entities in Malaysiaentities in Malaysia

Business in Malaysia can be registered Business in Malaysia can be registered within four Actswithin four Acts

Business Registration Act 1956 Business Registration Act 1956 (Amendment 1978) and procedures of (Amendment 1978) and procedures of business registration 1957. business registration 1957.

Companies Act 1965Companies Act 1965 Cooperation Act 1948Cooperation Act 1948 Parliment Act or State Ecatment ActParliment Act or State Ecatment Act

BUSINESS ENTITY IN BUSINESS ENTITY IN MALAYSIAMALAYSIA

I

Business Registration

Act

III

Cooperative Act 1948

II

Company Act 1965

IV

Parliamentary Act & State Government Enactment

Sole Proprietorship

Partnership

Limited Company by Guarantee

Unlimited Company

Limited Company by Share

Private Limited (Sdn. Bhd)

Public Company (Berhad)

Foreign Owned Company

Companies Commission of Companies Commission of Malaysia (SSM)Malaysia (SSM)

StateState AddressAddress

Head QuarterHead Quarter Tingkat 2, 10-19 Putra PlaceTingkat 2, 10-19 Putra Place

100 Jalan Putra 100 Jalan Putra

50622 Kuala Lumpur50622 Kuala Lumpur

MelakaMelaka Suruhanjaya Syarikat Malaysia (Negeri Suruhanjaya Syarikat Malaysia (Negeri Melaka)Melaka)

Aras Bawah Menara MITC, Kompleks MITCAras Bawah Menara MITC, Kompleks MITC

Jalan Konvensyen, 75450 Air Keroh, MelakaJalan Konvensyen, 75450 Air Keroh, Melaka

PerakPerak Tingkat 2C, Greentown MallTingkat 2C, Greentown Mall

Jalan HospitalJalan Hospital

30450 Ipoh, Perak30450 Ipoh, Perak

KedahKedah Tingkat 10, Menara SentosaTingkat 10, Menara Sentosa

Jalan Tuanku Ibrahim, 05621 Alor SetarJalan Tuanku Ibrahim, 05621 Alor Setar


KelantanKelantan Tingkat 2,3&4, Kota Sri MutiaraTingkat 2,3&4, Kota Sri Mutiara

Jalan Sultan Yahya Petra, 15150 Kota BharuJalan Sultan Yahya Petra, 15150 Kota Bharu

TerengganuTerengganu Tingkat 6-7, Menara Yayasan IslamTingkat 6-7, Menara Yayasan Islam

Jalan Sultan Omar, 20300 Kuala TerengganuJalan Sultan Omar, 20300 Kuala Terengganu

Pulau PinangPulau Pinang Tingkat 6-7, Bangunan KWSP, No 3009Tingkat 6-7, Bangunan KWSP, No 3009

Off Leboh Tenggiri 2, Bandar Seberang JayaOff Leboh Tenggiri 2, Bandar Seberang Jaya

13700 P.Pinang13700 P.Pinang

PahangPahang Lot 202-216, Tingkat 2, Block BLot 202-216, Tingkat 2, Block B

Kuantan Centre PointKuantan Centre Point

Jalan Haji Abdul Rahman, 25000 KuantanJalan Haji Abdul Rahman, 25000 Kuantan

JohorJohor Podium 4B & 5, Menara AnsarPodium 4B & 5, Menara Ansar

65, Jln Trus, 80000 Johor Bahru65, Jln Trus, 80000 Johor Bahru


PerlisPerlis Tingkat 8, Bangunan KWSPTingkat 8, Bangunan KWSP

Jalan Bukit Lagi, 01000 KangarJalan Bukit Lagi, 01000 Kangar

SelangorSelangor Tingkat 3 & 4, Plaza Alam SentralTingkat 3 & 4, Plaza Alam Sentral

Jalan Majlis, Seksyen 14, 40000 Shah AlamJalan Majlis, Seksyen 14, 40000 Shah Alam

Negeri SembilanNegeri Sembilan Tingkat 2, Wisma Fook LoongTingkat 2, Wisma Fook Loong

Jalan Dato’ Abdul RahmanJalan Dato’ Abdul Rahman

70000 Seremban70000 Seremban

SabahSabah Tingkat 4, Menara MAATingkat 4, Menara MAA

6, Lorong Api-Api6, Lorong Api-Api

88999 Kota Kinabalu88999 Kota Kinabalu

SarawakSarawak Tingkat 2 & 3, Wisma STATingkat 2 & 3, Wisma STA

26, Jalan Datuk Abang Abdul Rahim26, Jalan Datuk Abang Abdul Rahim

93450 Kuching93450 Kuching

1. Sole Proprietorship/ INTERPRISE1. Sole Proprietorship/ INTERPRISE

CharacteristicsCharacteristics AdvantagesAdvantages DisadvantagesDisadvantages1.1. Easy to Easy to

register.register.

2.2. Own by one Own by one person.person.

3.3. Simple business Simple business structure. structure. example: Tailor example: Tailor shops, Beauty shops, Beauty Salons, Salons, Restaurant, Restaurant, Mini markets Mini markets (Retail Sector)(Retail Sector)

1.1. Small set-up costSmall set-up cost

2.2. Easy to manageEasy to manage

3.3. Easy to form and Easy to form and dissolvedissolve

4.4. All profit will go to All profit will go to the ownerthe owner

5.5. Not subject too Not subject too much government much government rules & rules & regulations regulations (Financial (Financial statement doesn’t statement doesn’t required validity required validity by qualified by qualified auditor)auditor)

1.1. Limited source of Limited source of capitalcapital

2.2. Unlimited business Unlimited business liabilityliability

3.3. Business expansion Business expansion depend on owner depend on owner capabilitycapability

4.4. Life span depend Life span depend upon the age and upon the age and how efficiently how efficiently business business management by management by ownerowner

2. Partnership/ SDN BHD2. Partnership/ SDN BHD

DefinitionDefinition A person forms a partnership with one or A person forms a partnership with one or

more person to carry out a business with a more person to carry out a business with a view to making profits.view to making profits.

Partnership EstablishmentPartnership Establishment Based on Partnership Act 1961Based on Partnership Act 1961 Each partner consider the company Each partner consider the company

representative and acts on behalf of the representative and acts on behalf of the companycompany

Partnership formation can be verbal or Partnership formation can be verbal or written agreement. Partnership Act as written agreement. Partnership Act as reference (Verbal agreement) .reference (Verbal agreement) .

CharacteristicsCharacteristics AdvantagesAdvantages DisadvantagesDisadvantages1.1. 1< person <201< person <20

2.2. Professional < 50Professional < 50

3.3. Partners share the Partners share the capital, profits and capital, profits and losseslosses

4.4. According to According to section 6, section 6, Partnership Act Partnership Act 1061: they are 1061: they are collectively called collectively called a firma firm

1.1. Easier to secure Easier to secure financingfinancing

2.2. Business Business management management and risks, and risks, resources can resources can divided among divided among partnerspartners

3.3. Ideas, talents Ideas, talents and skills can and skills can be pooled be pooled togethertogether

1.1. Unlimited Unlimited business business liabilitiesliabilities

2.2. The life span The life span depend on the depend on the life span of the life span of the partnerspartners

3.3. Misconduct or Misconduct or unethical will unethical will happen if no happen if no ‘Letter of ‘Letter of Agreement’ is Agreement’ is being madebeing made

2. PartnershipPartnership

Registration Guide for Sole Registration Guide for Sole Proprietorship and Partnership Proprietorship and Partnership

BusinessBusiness

Business Establishment Business Establishment Notification Adjustment Business Notification Adjustment Business

InformationInformationBusiness Dissolve (Terminate)Business Dissolve (Terminate)

Application being rejected:Application being rejected:

The applicant does use capital letterThe applicant does use capital letter Application form is too dirty or untidyApplication form is too dirty or untidy Corrections are made using ‘liquid eraser’Corrections are made using ‘liquid eraser’ The business is already registered, but the The business is already registered, but the

owner not terminate existing business owner not terminate existing business before applying the new onebefore applying the new one

Verification of application form has been Verification of application form has been made by unauthorised personnelmade by unauthorised personnel

The applicant doesn’t attach a copy of The applicant doesn’t attach a copy of licenses or permit.licenses or permit.

Business Organization In MalaysiaBusiness Organization In Malaysia(Companies Act 1965)(Companies Act 1965)

CharacteristicsCharacteristics RequirementsRequirements

MembershiMembershipp

Must have at least 2 members – Malaysian Must have at least 2 members – Malaysian nationality, acts as company director and founder. nationality, acts as company director and founder.

The members of company will appoint the Board of The members of company will appoint the Board of Director.Director.

LiabilitiesLiabilities Limited to the total shares contributed.Limited to the total shares contributed.

Personal assets not affected.Personal assets not affected.

Right and Right and ResponsibiliResponsibilityty

It can acquire assets under its own name.It can acquire assets under its own name.

Take legal action and face legal action under its own Take legal action and face legal action under its own name.name.

Private Limited Company

Life SpanLife Span Not dependent upon the death or resignation of Not dependent upon the death or resignation of it members.it members.

Dissolved when its members no longer Dissolved when its members no longer interested.interested.

Business Organization In MalaysiaBusiness Organization In Malaysia(Companies Act 1965) - continue(Companies Act 1965) - continue


Terms & ConditionsTerms & Conditions Member not exceed 50 people.Member not exceed 50 people. Transfer ownership of members’ share with the approval Transfer ownership of members’ share with the approval

BOD.BOD. Not allowed to offer or sell any share or debenture to Not allowed to offer or sell any share or debenture to

public.public. Not allowed to offer public to deposit money within Not allowed to offer public to deposit money within

stipulated time frame.stipulated time frame. Use the word Use the word “Sdn. Bhd.”“Sdn. Bhd.” atau atau “Sendirian Berhad”“Sendirian Berhad” at at

the end of its name.the end of its name.



AdvantagesAdvantages DisadvantagesDisadvantages1.1. Funds easy acquire through Funds easy acquire through

exchange of share ownership exchange of share ownership or loan from financial or loan from financial institution.institution.

2.2. All shareholders are legally All shareholders are legally protected by law.protected by law.

3.3. Shareholders are not burden Shareholders are not burden with mgmt of business. with mgmt of business.

4.4. Liabilities limited to the capital Liabilities limited to the capital contribute to company.contribute to company.

5.5. Life span is not depend on age Life span is not depend on age or resignation its members.or resignation its members.

6.6. Greater potential for Greater potential for expansion.expansion.

7.7. Legally, it one business entity Legally, it one business entity by itself.by itself.

1.1. Subject to more rule & Subject to more rule & regulations.regulations.

2.2. Shares can’t traded Shares can’t traded through share market.through share market.

3.3. Must pay corporate tax.Must pay corporate tax.

4.4. Qualified Auditors must Qualified Auditors must audit yearly financial audit yearly financial stat & stat complete, stat & stat complete, updated.updated.

5.5. Financial affairs must Financial affairs must transparent to public.transparent to public.

6.6. Cost setting up is high.Cost setting up is high.



Members of ShareholdersMembers of Shareholders Board of DirectorsBoard of Directors SecretarySecretary AuditorsAuditors Registered OfficeRegistered Office Company SealCompany Seal Authorisation LetterAuthorisation Letter



Registration Fee (Based in Authorised capital)Registration Fee (Based in Authorised capital)

Authorised CapitalAuthorised Capital Fee (RM)Fee (RM)

Nominal share capital ≤RM100,000Nominal share capital ≤RM100,000 1,0001,000

> RM100,000 Nominal share capital ≤ > RM100,000 Nominal share capital ≤ RM500,000RM500,000

3,0003,000

> RM500,000 till ≤ RM1 juta> RM500,000 till ≤ RM1 juta 5,0005,000

>RM1 juta till ≤ RM5 juta>RM1 juta till ≤ RM5 juta 8,0008,000

>RM5 juta till ≤ RM 10 juta>RM5 juta till ≤ RM 10 juta 10,00010,000

> RM 10 juta till ≤ RM 25 juta> RM 10 juta till ≤ RM 25 juta 20,00020,000

> RM 25 juta till ≤ RM 50 juta> RM 25 juta till ≤ RM 50 juta 40,00040,000

> RM 50 juta till ≤ RM100 juta> RM 50 juta till ≤ RM100 juta 50,00050,000

> RM 100 juta > RM 100 juta 70,00070,000

Private Limited CompanyPrivate Limited Company - Registration Procedure- Registration Procedure

2. Procedures & Legal Aspects2. Procedures & Legal Aspects

Licences

Business

Wholesaling

Manufacturing

Food manufacture

Sales Tax

Excise

Local authorities

Sale in large quantities

Manufacture activities

>RM100,000 paid-up capital

Food processing - PBT

Imported & local products exempted tax

manufacture products subject to excise tax (car, soft drink, cigarette)

Procedures & Legal Aspects Procedures & Legal Aspects (continue)(continue)

Permit

Foreign Workers – Plantation sector, retail, construction need approval from KSM & meet rules Immigration Dept.

Transportation – Apply to Commercial Vehicles Board under MECD according to different types: Taxis, school & factory buses, lorry (A or C class)

Letter of Authority – The cert. of fitness (CF) issued by local authorities

Assembling of Machinery & EquipmentAssembling of Machinery & EquipmentFactory and Machinery Act 1967 Factory and Machinery Act 1967

(Amended 1974), provide workers’ safety, (Amended 1974), provide workers’ safety, health and welfare at the site installation health and welfare at the site installation of machinery and equipmentof machinery and equipment

Pollution ControlPollution ControlThe Quality Environmental Act for plant The Quality Environmental Act for plant

design, layout and installation of pollution design, layout and installation of pollution control.control.



Business RightsBusiness RightsTrademark ProtectionTrademark Protection

The Trademark Act protects from unhealthy The Trademark Act protects from unhealthy business practices (product imitation) business practices (product imitation)

Patent ProtectionPatent ProtectionThe Patent Act 1983, provides registration of The Patent Act 1983, provides registration of

design (maratus, articles, tools, materials and design (maratus, articles, tools, materials and composition. Application to Registrar of Patents composition. Application to Registrar of Patents made through agents registered with Office of made through agents registered with Office of Patent Registration, Ministry of Domestic Trade & Patent Registration, Ministry of Domestic Trade & Consumer Affairs. Consumer Affairs.

CopyrightCopyrightThe Copyright Act 1987, to protect businesses, The Copyright Act 1987, to protect businesses,

writers, composers and broadcasters in the area of writers, composers and broadcasters in the area of literature, music, art, sound recording and literature, music, art, sound recording and broadcast programs.broadcast programs.


Standards and Quality (SIRIM)Standards and Quality (SIRIM) Recognition to quality prod & services. Different Recognition to quality prod & services. Different

types of quality standards are given to business types of quality standards are given to business entities based on products, system, services and entities based on products, system, services and environment management.environment management.

Hire Purchase ActHire Purchase Act The Hire Purchase Act 1967 (Amended 978) – control The Hire Purchase Act 1967 (Amended 978) – control

the forms and contents of hire purchase agreement. the forms and contents of hire purchase agreement. Assets coveredAssets covered

VehiclesVehicles Radios,TV, cassette recorders or any combination of the Radios,TV, cassette recorders or any combination of the

itemsitems Refrigerators, freezers or combination of bothRefrigerators, freezers or combination of both Sewing machines or Air-Conditioners other than for industrial Sewing machines or Air-Conditioners other than for industrial

useuse Vacuum cleanersVacuum cleaners Gas, electric cookers and ovensGas, electric cookers and ovens

o Down payment (20%), balance finance companies on Down payment (20%), balance finance companies on installment basisinstallment basis


Workers’ Social NeedsWorkers’ Social NeedsEmployee Provident Fund Act 1961 (KWSP) Employee Provident Fund Act 1961 (KWSP)

& Workers Social and Safety Act 1991 & Workers Social and Safety Act 1991 (PERKESO).(PERKESO).

Infrastructure NeedsInfrastructure NeedsBasic facilities & infrastructure (TNB, Basic facilities & infrastructure (TNB,

Telekom, JBA)Telekom, JBA) Import & Export RegulationsImport & Export Regulations

Approved Permit (AP) from Ministry of Approved Permit (AP) from Ministry of International Trade and Industry (MITI) and International Trade and Industry (MITI) and Royal Custom & Excise etc.Royal Custom & Excise etc.

3. Business Supports In 3. Business Supports In MalaysiaMalaysia

Entrepreneur

Courses, Seminars & workshops Technical

Assistance

Marketing Assistance

Infrastructure Assistance

Information Assistance

Research & Development

Extension Services

Advisory Services

Financial Assistance

Business Supports (continue)Business Supports (continue)

Technical Assistant Technical Assistant To expose production methods and systematic To expose production methods and systematic

management. Agencies involved such as SIRIM, management. Agencies involved such as SIRIM, MARA,Multimedia Development Corporation S/B MARA,Multimedia Development Corporation S/B (MDeC), MARDI, RRIM, MPOB ,FRIM, Jab. (MDeC), MARDI, RRIM, MPOB ,FRIM, Jab. Pertanian and Jab Perkhidmatan Haiwan.Pertanian and Jab Perkhidmatan Haiwan.

Marketing AssistantMarketing Assistant Help entrepreneur distribute an market their Help entrepreneur distribute an market their

products locally or internationally. Agencies products locally or internationally. Agencies involved such as MITI, MATRADE, FAMA.involved such as MITI, MATRADE, FAMA.

Infrastructure AssistantInfrastructure Assistant Getting business premises. Agencies involved Getting business premises. Agencies involved

such as MARA, SEDC, SIRIM, UDA, KPLB, SME such as MARA, SEDC, SIRIM, UDA, KPLB, SME Bank dan MITIBank dan MITI

Business Supports (continue)Business Supports (continue) Information AssistanceInformation Assistance

Business opportunities, statistics, new research Business opportunities, statistics, new research findings, technology research etc. MITI, findings, technology research etc. MITI, MATRADE, MARDI, SIRIM, FRIM & IPTAMATRADE, MARDI, SIRIM, FRIM & IPTA

Research and DevelopmentResearch and Development Project feasibility studies, market research and Project feasibility studies, market research and

technology related studies. MARDI, SIRIM, IPT.technology related studies. MARDI, SIRIM, IPT. Financial AssistanceFinancial Assistance

Provide financing facilities to implement business Provide financing facilities to implement business ideas. Commercial banks, merchant banks, ideas. Commercial banks, merchant banks, licensed banks, related governments such as licensed banks, related governments such as MDec, SMIDEC (e–manufacturing ICT grants MDec, SMIDEC (e–manufacturing ICT grants scheme), SME bank.scheme), SME bank.

Business Supports (continue)Business Supports (continue) Advisory ServicesAdvisory Services

Managing business training and Managing business training and consultation. Tax deduction from HRDF, consultation. Tax deduction from HRDF, Ministry of Human Resources.Ministry of Human Resources.

Training, Seminars and WorkshopsTraining, Seminars and Workshops Consist of management training, efficiency, Consist of management training, efficiency,

skills, motivation etc. MITI, PUNB, MARA, skills, motivation etc. MITI, PUNB, MARA, MFA (PFM), SEDC & Financial Institutions.MFA (PFM), SEDC & Financial Institutions.

o Extension ServicesExtension Services MDec, MITI, SIRIM, MATRADE, MARDI, NPC MDec, MITI, SIRIM, MATRADE, MARDI, NPC

to ensure implementation of proposed to ensure implementation of proposed projects (follow-up services).projects (follow-up services).

TASK 1 (27/9/2012)TASK 1 (27/9/2012)

Design a letter head of your company Design a letter head of your company using MS Word / MS Publisher / Autocad / using MS Word / MS Publisher / Autocad / etc…logo, address, no tel, emel, tagline etc…logo, address, no tel, emel, tagline etc….etc….

Kreativiti & InovasiKreativiti & Inovasi

Cantik & Kemas Cantik & Kemas

Submit on next week (in class) 4 Submit on next week (in class) 4 OKTOBER 2012.OKTOBER 2012.

Nota Keusahawanan Week 3 (Business Rules & Supports)

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