Compliance Tips New Business Owners Need to Know

Compliance Tips New Business Owners Need to Know

Newly set up firms commonly encounter some difficulties which impede them from achieving their full capacity in the country. However, what they did not realise is that they can avoid most of the problems by abiding by the fixed rules and regulations.

Regulative Filings

Every registered firm in Johor Bahru needs to ensure that they have submitted all regulatory filings punctually (Also see Distinguish Financial Accounting and Management Accounting). Therefore, it is highly advisable to employ a company secretary or select among the accredited corporate service providers to make sure that you would not miss out on any filings.

The corporate service providers (Also see Duties of a Corporate Secretary under Malaysian laws) would guarantee that your business files annual returns punctually, as well as communicate with the Suruhanjaya Syarikat Malaysia (SSM) regarding any alternations in directors or shareholders.

Handling Books Of Accounts

Similar to other countries, all firms in Malaysia need to do preparation as well as filing of their financial statements when their financial year approaches to the end. To achieve this, as a business owner, you should possess a bookkeeping system to keep a record of every transaction of your business. This inevitably help the auditors to achieve their audit objectives easier and facilitate the audit process.

Also, bookkeeping demands firms to keep all pertinent supporting documents, for example, receipts, payroll, invoices, and documents for investment as they play a vital role when you prepare and file your financial statements. You may also use them to indicate the overall financial health and cash flow of your business, particularly when you want to apply for bank loans. Thus, you may consider employing a professional accounting firm in Johor Bahru to help manage and keep track of your bookkeeping system.

Taking The Initiative To Understand Issues Related To Taxes

Because of the favourable taxation system in Malaysia, many investors and entrepreneurs choose to incorporate companies here. In Malaysia, the standard cooperate tax rate is 24%, whereas for resident small and medium-sized enterprises, the rate is only 17% on the first RM600,000, and the balance is taxed at 24% (Also see What to expect from your tax agent?).  Besides, in Malaysia, capital gains are not taxed, other than the gains obtained from the sales of shares and the disposal of real property in real property companies.

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