Business Organisation in Malaysia.pptx

CHAPTER 4 – THE CLASSIFICATION OF BUSINESS ORGANIZATION IN MALAYSIAi. Introductionii. Types of businessiii.Departmental functioniv.Registration of new businessv. Impact of registering and not registering

businessvi.The responsibility of business owner

Introduction

A World Bank report has ranked Malaysia as the sixth friendliest country in the world to do business, beating developed nations such as South Korea, the United Kingdom and Australia.

Malaysia also made it easier for people to deal with construction permits by coming up with a one-stop shop. 

Types of Business

Laws Governing Formation

Numbers of Member

Departmental Functions

Every organization is made up of different department.  Each department contributes to the running of the business. The most common departments are: 

Production Marketing & Sales Finance Human resource Information Technology

1. Production The production department is responsible for converting inputs into outputs through the stages of production processes. The Production Manager is responsible for making sure that raw materials are provided and made into finished goods effectively.

2. Human resource DepartmentThe role of Human resource department is in charge of recruiting, training, and the dismissal of employees in an organization.

Departmental Functions

3. Marketing departmentThese are the main section of the market departments:Sales department Research & Department Promotion department Distribution department 

4. Finance DepartmentBook keeping procedures Preparing Final AccountsProviding management info Management of wagesRaising Finance 

Departmental Functions

Registration for New Business

Registration for New Business

1. Business may be registered using personal name or using a trade name.

a) The business name using personal name as stated in the identity card is not required to apply for business name.

Example: Ruslan bin Mohamed, Siow Ah Thai or, Ramasamy a/l Mutusamy

b) Trade Name is the name of the proposed business and must obtain prior approval from the Registrar of Business. Example: Kedai Dobi Mewah, Lucky Star Catering or, ABS Unggul Enterprise.

2. Complete the Business Registration Form (Form A) with the following information :

a) Business name

b) Commencement date of business

c) Principal place of business(The address of the branch of business (if any)

e) Information of owner and partners

f) Type of business carried out

g) Provide a copy of the Partnership Agreement (if any)

3. Every business owner and partner must sign the completed Form.

4. Person responsible must submit the application to counter or through online via SSM e-Lodgement services in the SSM’s website atwww.ssm.com.my.

5. Documents to be attached are as followsa) Photocopy of owner and/ or partner’s identity cardb) Permit, licence or Supporting letter for the type of business. E.G. : Nurseries (Department of Social Welfare), Kindergarten, Tuition Centres, Schools/College (Ministry/ Department of Education)c) Approval or Supporting Letter from relevant agency if required by the Registrar of Business.

Impacts

Not Registering

• Business owners will have a compound not exceeding RM50,000 may be imposed or imprisonment for a term not exceeding 2 years or both if convicted.

Registering

• Safeguarding your business name

• Receiving some legal liability protection

• Continuation of business

The Responsibility of Business Owner

1.  The principal strategist and planner

2.Comply with business licensing law(Legal contract,

Sales Agreement)

3.Form the marketing strategy

4.Getting the best human capital to run the business.

5.Responsibility to key stakeholders