Every business run by entrepreneurs in Malaysia must comply with the laws that have been set whether small business or online. Business entrepreneurs must be legally registered as business entities under the Business Registration Act 1956 and must be registered with the Companies Commission of Malaysia (SSM).
Registration under SSM is very important so that your business is protected and trusted by the general public. Flavaris shares the main reasons why you need to register your business with SSM.
Importance of SSM Registration
Comply with the Law
By taking steps to register with SSM, you have complied with the law under the Business Registration Act 1956 which requires business entrepreneurs to be registered with SSM. If the business entrepreneur violates this law they can be prosecuted in court. Among the actions that will be imposed is a fine of RM50 000 or imprisonment for 2 years.
Simplify Business
Among the importance of SSM registration is that it makes it easier for applicants to open a business bank account. Transactions under a business bank account are easier and safer because transactions on personal savings accounts have limits and are not suitable to be used for business purposes. Furthermore, SSM’s registration also facilitates its entrepreneurs to obtain bank loans for start-up capital purposes or to expand their business.
Build Business Confidence
If your business is registered with SSM, it indirectly provides proof that your business is legitimate and complies with the law. It will also give customers confidence and credibility towards the business you run. This confidence reflects the business so that your customers don’t feel hesitant.
Deepen Business Knowledge
After undergoing the registration process with SSM, business entrepreneurs acquire a variety of knowledge that can be used to move to the next level. This knowledge can be used by entrepreneurs who plan to upgrade their business to the Sdn Bhd level. With this knowledge, it facilitates entrepreneurs about the management and ins and outs of business in preparation for the next level.
In conclusion, registration with SSM is very important which will provide various benefits to the business and entrepreneurs. Registration with SSM is very easy and the process does not require a long time.
