10 important steps for startup business in Malaysia in 2025

Questions to ask yourself:

The purpose of the vision and mission is to align and guide everyone, including yourself because sometimes we can make mistakes along the journey. (P/S: We always learn from mistakes)

A 3-5 year strategic boost-up plan has to be developed along with key performance indicators (KPI) to be achieved. In addition to using it for coordination purposes, you can use it as a tool to review and evaluate performance to keep your startup business in good shape.

Your mission should communicate your purpose and guide all your strategic decisions. Having a strong vision is critical for your long term goals, future specific goals, and aligning your team.

“A compelling vision defines your purpose; a mission brings it to life.”

Questions to ask yourself:

Before you register your company, most important thing you need a realistic business model and financial planning framework:

Business Model:

1. What are the product or services? Refer to this video -> No 1 Product Tip presented by Vishen Lakhiani from Mindvalley, to understand your market better before deciding the direction of your business plan.
2. What are the type of income/revenue based on your business model? Recurring or one-off?
3. Can you expand your startup company nationwide, regionally and globally?

Financial Planning:

1. How much initial capital to start the business? Cash flow is a vital factor in financial planning
2. Estimate startup capital and monthly costs (Calculating monthly burn rate is important for financial planning)
3. Evaluate financial goals, risk tolerance, and net worth
4. Set aside funds for unexpected expenses
5. Set your personal financial goals and net worth target

You do not need a professional accountant or financial planner at this stage. Basic understanding about numbers is sufficient to kickstart your business towards successful market validation.

Think twice in financial planning – Risks you should avoid in multiple financial situation:

Choose a structure that fits your needs:

1. Sole proprietorship – for simple, one-person operations
2. Partnership – if you’re starting with a co-founder
3. Private limited company (Sdn Bhd) – most popular for SMEs
4. Limited Liability Partnership (LLP) – growing demand by startups

A business structure affects your liability, tax obligations, and ability to raise funding. It’s also crucial for managing your business operations.

Always start with an affordable approach while still aiming to protect your interests. You may start with LLP and move into Sdn Bhd when the time is right. Register your business with the Companies Commission of Malaysia (SSM). Here’s how:

1. Name search & reservation
2. Choose entity type (e.g., Sdn Bhd)
3. Submit documentation via SSM Ezbiz

Questions to ask yourself:

You can’t scale alone. Assemble a strong team that supports your vision:

1. Determine roles and responsibilities clearly
2. Hire based on cultural fit and technical ability
3. Investing in outsource where necessary (e.g., payroll, tax)
4. Establish strategy in internal SOPs for financial controls, manage business operations and customer services.

Business encompasses the areas of accounting, human resources, operations, marketing, business development, etc. Start establish your team to achieve business objectives.

Choose the right team member and be prepared to ensure the team is aligned to your direction, with clear KPIs and team performance reviews.

Questions to ask yourself:

Outsourcing is an option for Malaysian startups that spending effectively to boost their business. In the early stages, there are few areas in which outsourcing can be considered for smooth operation.

Financial accounting is an area that some business owners ignore. It plays an important role in reflecting the performance of your business through financial statements, showing the result if your business strategy works, investments are generating income, creating more assets, having enough savings for monthly burn rate and more.

Cloud accounting services are a forthcoming trend in Malaysia, helping companies obtain accurate and transparent financial information to make better decisions to grow their business.

Questions to ask yourself:

Let us explain this, cloud software technology can be used by startups and growing businesses to operate efficiently with spending affordable investments. Other than understanding the features of cloud software, you should investigate the potential integration of particular cloud softwareto streamline your startup business easier and communicate internally.

For example, you can have both project management tools and communication tools to integrate with each other for free in your startup business!

Another example is the use of Xero cloud accounting software for your startup business in Malaysia. Can you imagine that you can access your Xero cloud accounting software anytime, anywhere using any device? See here for more information on how cloud accounting software can help your startup business in Malaysia?

Questions to ask yourself:

E-Invoicing Malaysia

From 1st July 2026 onwards, all the business above RM 150,000 annual revenue need to comply with E-Invoicing. Therefore, always take implementation of E-Invoicing Malaysia into your consideration of company strategy because it will affect your business operations and directions.

Set aside a specific time-frame to implement e-invoicing with your outsourced or in-house accountant before you are reaching RM 150,000 annual revenue.

Check out this blog to understand more.

Malaysia Annual Budget

Knowing Malaysia’s annual budget will help you develop your business roadmap and take advantage of the opportunities, tax incentives and financial incentives or grants offered in Malaysia. It could lead your investments in assets to be aligned with annual budget to fully utilize the benefits.

Tax Planning for Income Tax Malaysia

For Company Income Tax under Year Assessment of 2023 and 2024, the Income Tax Structure will be as below:

1. 15% – On first RM 150,000
2. 17% – RM 150,001 to RM 600,000
3. 24% – RM 600,001 to subsequent balance

This income tax structure is only applicable to company with paid up capital not more than RM2.5 million and gross business income of not more than RM50 million.

Questions to ask yourself:

With your solid business sense, prepare and track metrics like:

1. Revenue growth
2. Customer acquisition costs
3. Operational efficiency

Implement cloud software and generate dashboards for financial planning, forecast income, and reassess your financial situation regularly. Consider cloud tools for analytics and cash flow tracking. For example, investing in a cloud accounting software like Xero would provide you clearer direction in your business financial planning.

Tips: 5 Effective Ways of Xero Improves Cash Flow Management

Questions to ask yourself:

Aiming to be the authority within your niche is one of the core competencies that can create WOW factors for your Malaysian customers. Show your strength and experience in this area to gain confidence and trust.

Do not forget to invest in providing outstanding customer service for building long-term relationships with your customers to achieve sustainable business growth.

Overall, small and medium business sustainability is one of the keys to long-term advancement in building the country’s economy because SMEs are occupying for 98.5% in Malaysia. Finally, running a business in Malaysia is like doing business elsewhere. Promote your business as an authority in the chosen industry and successfully capture more users. If you pay attention to these 10 important steps in setting up your awesome ideas, you can enjoy a high level of sustained success and achieved your financial goals in Malaysia.

Final Thoughts

This startup guide aims to explains and simplify your entrepreneurial journey in 2025. From business registration and financial planning to scaling your operations, these steps provide a practical foundation for success.

Stay agile, stay compliant, and always align your operations with your vision.

Need help with cloud accounting setup or e-invoicing compliance? Contact CALTRiX to streamline your business today.

Good luck and all the best on your new adventure trip in 2025 as an entrepreneur!