By AKPK
Becoming an entrepreneur requires high )]enthusiasm to start a business, and later develop and expand business with optimism. Many are fascinated with the idea of owning a business and becoming their own boss.
However, entrepreneurs should really study how best they should start and run their business, especially during challenging times, to ensure business continuity. If you are a small business owner, have you ever wondered about the following questions?
“Why do other businesses receive certain aids but not me? How do I expand my business, then?”
“Why do customers show no confidence in my products and services?”
“How do I assure my family that this business can be passed down to the next generation?”
The above questions may very well be playing in your mind if your business is not registered. If you have not registered your business yet, now is the best time to register your business and establish it as a legitimate entity beginning 2023.
As a registered business, you will have better opportunities and advantages to drive your business forward. According to the Companies Commission of Malaysia (Suruhanjaya Syarikat Malaysia, SSM), there are still business owners who didn’t register their businesses due to reasons such as the business being too small, not being aware of the requirement to register their businesses and the location of SSM being too far from their respective locations.
Regardless of these factors, under the Registration of Businesses Act 1956 and Companies Act 2016, all businesses are required to be registered, be it full-time or part-time. Any business generating profit needs to be registered with SSM. As an entrepreneur or business owner who desires for your business to flourish and be long-lasting, you need to ensure that your business is legitimate in the eyes of the law and subsequently made known to the public. Your business stands to receive various benefits if it is registered.
Among the benefits a registered business can enjoy:
- Business Will Generate More Public Confidence
Every business will involve some form of capital, either through borrowing from financial institutions, investors or other sources. Registration of a business and its legal acknowledgement will facilitate the approval of loans and garner investors’ confidence to invest in the business. Apart from investors’ confidence, consumers will be assured that their rights are always protected when dealing with a registered company. Business owners who register their businesses portray credibility and commitment to what they are doing. At the same time, the public will have more confidence in carrying out business transactions with them.
- Ease of Getting Assistance through Various Channels
Registration of your business will help the government identify your existence in order to channel appropriate aid or assistance, either financial or training needs, as happened in the country during the pandemic throughout the Movement Control Order (MCO). A registered business is qualified to receive and enjoy various financing and training incentives provided by government agencies such as Bank Negara Malaysia (BNM), Bank Rakyat, TEKUN, CGC, SME Corp., PUNB and others. Entrepreneurs may use all these assistance to increase and expand their existing businesses or begin new ventures.
- Operate Your Business Legally
Once a business is recognised as a legitimate entity, business owners can operate their businesses legally without running the risk of being fined RM50,000 or being imprisoned for two (2) years. The owners can apply for a premise licence and permit, including insurance, for their businesses without hindrances. With the registered SSM certificate, the business owners can easily apply for a bank current account for business transaction purposes, thus facilitating the application of further financing from banks. Business owners can operate their businesses without any doubts and the company will appear more professional as it runs as a legitimate business. A registered business will make it easier for government agencies and customers to search for more accurate and updated company information.
- Business Can Be Inherited
A registered business will be able to pass down the product branding or retained business profits accumulated over time to the next generation. This is because all the assets or properties will be assigned to the owner once the business is registered. The company brand is an important asset to be protected. If the company brand is not registered, it can be used, misappropriated or copied by another individual or company. It will also complicate the inheritance procedure for a third party. Among the business types that can be registered are sole proprietorships, partnerships, companies or limited liability partnerships.
Other than registering with SSM, business owners in Sabah and Sarawak may also register their businesses with the local council authority (Pihak Berkuasa Tempatan, PBT). Start your business the right way by registering your business as a legitimate entity. Stop giving excuses and start taking action. The business you build should not only be for the present time, rather, it should also be the driving force for the next generation of entrepreneurs. At the very least, claim your exclusive rights to the business name before it is too late!
For further reference and tips, business owners or entrepreneurs can refer to the following links:
A brief video about business registration: https://www.youtube.com/watch?v=Qo-pRixbGXs.
Business owners who are yet to register their businesses or planning to do so can fill up the survey form at: https://power.akpk.org.my/RnP/Home/PublicSurvey/91?fbclid=IwAR0ICS_Vzx1U5bjUtj9Q75MD7bjZMXOEUDX43RdreOGObryfniBHf1VbemM
Agensi Kaunseling dan Pengurusan Kredit (AKPK) serves as the one-stop platform for both individuals and MSMEs seeking debt restructuring services, as well as financial education and advisory services. AKPK offers specialised solutions to help micro, small and medium enterprises (MSMEs) manage their debt and promote sound financial management practices.
