What Are the Responsibilities of a New Business Owner?
Being a business owner is more than just directing operations and keeping up with paperwork. Upon startup, it involves making plans and strategizing new techniques to attract the target markets. Business owners are also responsible for the various legal procedures required to start and run the business. As the head of the company, company owners have to supervise every aspect of the business and sometimes even handle things themselves.
Maybe you are being invited to become a partner in a new business venture yet know nothing about what it takes to be one. This article provides an overview of the legal responsibilities of business owners in Malaysia. More specifically, we discuss here what business owners are expected to do when starting a new business in Malaysia.
As a business owner, it is your responsibility to see that your company is adhering to state and local regulations. To start, you need to register the business within 30 days from the commencement date. This process ensures that the state recognizes you as a legitimate business. You can register Sdn bhd (private limited company), sole trader, and partnership form of business with the Companies Commission of Malaysia (SSM). Additionally, they must also obtain appropriate licenses, permits, and letters of authorization from relevant authorities at the start of business.
The business owners also have the responsibility of obtaining renewing their business registration within 30 days from the expiration. Normally, the new registration is valid for a year. Changes in business, such as change of main address, nature of business, and owner information, must also be registered within 30 days from the date. When the change is regarding a partner or owner’s information, he must personally go to the SSM office or counter.
Furthermore, Under the Business Registration Act, the owner/s must display the Business Registration Certificate in their principal office or location. The certificate should be placed such that anyone can clearly and visibly see the document certifying their legitimacy. Under the same law, owners are required to display their company name on signboards outside every place of business. They must also display the company name, along with the registration certificate number, on the letterhead, invoice, bill, and other business documents.
Lastly, if the owner/s decides to terminate the business, a notice of such decision should be communicated with SSM within 30 days from the conclusion of operations. If the termination is due to the death of the owner or a partner, the Notice of Termination of Business (Form C) should be submitted within four months from the date of death. Failure to follow these above-mentioned rules is an offense against the law and is punishable with a fine or imprisonment, or both.
Professional Support to Business Owners in Malaysia
Starting and managing a business is not a walk in the park. If you’re only just starting a small business, the legal and planning business activities may become overwhelming. Fortunately, you have all the professional support you can get from the top corporate service provider in Malaysia. 3E Accounting Malaysia is your one-stop solution for all your business needs. From business registration to compliance with the regulations, we have professionals who can assist you every step of the way. Contact us today to know more about our corporate services!