10 Common Legal Issues Faced by Malaysian Businesses and How to Solve Them in a Majestic Way


Starting a business in Malaysia can be a daunting task, with numerous legal requirements and regulations to adhere to. Many businesses often face legal issues, which can lead to costly lawsuits, loss of profits, and even closure of the company. In this article, we will highlight the ten most common legal issues faced by Malaysian businesses and provide solutions to overcome them in a majestic way.

Incorporating a Company in Malaysia: A Must-Do

One of the primary legal requirements for starting a business in Malaysia is the incorporation of the company. Incorporating a company in Malaysia can be a complex process, but it is a must-do for any business that intends to operate legally. Failure to comply with the incorporation process can result in hefty fines, legal action, and even imprisonment.

“Wow, incorporating a company in Malaysia sounds like a complicated process, but it is a must-do for any business that intends to operate legally.”

Obtaining Licenses and Permits

Depending on the nature of your business, you may be required to obtain various licenses and permits from the relevant authorities. Failure to obtain the necessary licenses and permits can result in the closure of your business and legal action.

Registering for GST

Goods and Services Tax (GST) registration is mandatory for businesses with an annual turnover of over RM500,000. Failure to register for GST or to comply with GST regulations can result in penalties, fines, and even imprisonment.

Employment Laws

Employment laws in Malaysia can be complex and are regularly updated. It is essential to comply with all employment laws to avoid legal issues, such as wrongful dismissal claims, unpaid salaries, and unpaid overtime.

Intellectual Property Rights

Intellectual property rights, such as patents, trademarks, and copyrights, are crucial for protecting your business’s intellectual assets. Failure to register for intellectual property rights can result in other businesses using your ideas and innovations without your permission.

Debt Recovery

Debt recovery can be a challenging process in Malaysia, with lengthy legal procedures and the need to comply with the relevant laws and regulations. Seeking professional assistance from a corporate service provider can help speed up the debt recovery process and avoid legal issues.

Contract Disputes

Contract disputes can be costly and time-consuming, especially when parties fail to agree on the terms of the contract. Having a solid contract that complies with all legal requirements is essential for avoiding contract disputes.


Cybersecurity is becoming an increasingly significant concern for businesses in Malaysia, with the rise of cyber threats and data breaches. Complying with cybersecurity regulations and implementing robust cybersecurity measures can help prevent legal issues related to data breaches.

Workplace Safety and Health

Workplace safety and health regulations are in place to protect employees and employers from workplace accidents and injuries. Complying with these regulations can help avoid legal issues related to workplace accidents and injuries.

SDN BHD Registration

SDN BHD registration is mandatory for businesses that intend to operate as a private limited company. Failure to comply with the SDN BHD registration process can result in hefty fines, legal action, and even imprisonment.

“Hmm, it’s evident that complying with legal requirements is crucial for any business in Malaysia to avoid costly legal issues.”

Seek Professional Assistance from 3E Accounting Malaysia

Legal issues are common among businesses in Malaysia, and failure to comply with legal requirements can result in costly lawsuits and closure of the company. Seeking professional assistance from a corporate service provider, such as 3E Accounting Malaysia, can help businesses comply with legal requirements, avoid legal issues, and focus on their core business operations.