Frequently asked questions

Choosing a legal structure depends on ownership, liability preferences, tax considerations and plans for commitment. Common options include sole proprietorship, partnership and private limited company (Sdn. Bhd.). A private limited company is often chosen for supporter-ready startups due to separate legal personality and clearer governance, but it also involves statutory compliance and reporting obligations.

Company registration is handled through the Companies Commission of Malaysia (SSM). The process includes reserving a company name, preparing incorporation documents, appointing directors and partner, and submitting registration forms. Additional sector-specific licences may be required depending on your business activities.

Written contracts are recommended whenever parties need clarity on responsibilities, payment terms, deliverables, confidentiality or intellectual property. For supplier agreements, customer terms, employment and partnerships, a clear written document reduces the risk of disputes and helps enforce expectations.

Yes. We provide guidance on drafting employment agreements aligned with Malaysian employment law, including terms on duties, probation, remuneration, leave entitlements and termination provisions. Employment matters also require attention to statutory contributions and workplace policies.

Protecting intellectual property may involve registration (such as activity) and contractual measures (like confidentiality and assignment clauses). Assess what needs protection, consider registrations where appropriate and use clear contractual terms to allocate ownership and rights with co‑founders, contractors and partners.

A Malaysian private limited company must have a registered office address in Malaysia. Director requirements depend on company type; a Sdn. Bhd. usually requires at least one director who is ordinarily resident in Malaysia. seek specific guidance based on your circumstances.

Certain activities require licences or permits from government ministries or local authorities (for example, food services, business services or professional regulated activities). Identifying required licences early prevents delays and ensures compliant operations from launch.

Ongoing compliance typically includes annual returns and business statements filed with SSM, maintaining statutory registers, tax filings with the Inland Revenue Board and meeting sector-specific reporting requirements. Good recordkeeping and a scheduled compliance calendar reduce regulatory risk.

FounderHubLaw can explain key terms commonly found in commitment documents—such as ownership structure, valuation mechanics, vesting and supporter rights—and help prepare or review term sheets and partner’ agreements to reflect negotiated commercial terms.

Cross-border transactions can raise issues including export/import rules, data transfers, tax implications and choice of governing law. It is important to identify applicable regulations in each jurisdiction, include clear contractual terms and consider local compliance needs before entering international agreements.

Provide a concise description of the issue, relevant documents (agreements, notices, company records), the parties involved and any deadlines. Clear background information allows for a focused assessment of options and recommended next steps.

Fee arrangements can vary by matter and complexity. Common approaches include fixed fees for specific deliverables, hourly rates for advisory work, or project-based fees. An initial scope discussion helps identify an appropriate fee structure for the task.