You have decided to set up a new business or expand your business in Malaysia.
However, face it. You are a human being and you can’t do everything in your business. It's either that you don’t have the time, experience or knowledge.
This is where a lawyer can come in. Beyond going to courts, a lawyer in fact is a great partner to your business. This is because there will be a lot of documentation process that will take place in order to ensure that your business activity can be carried on. There will be applications, some filings or submissions, etc.
Therefore, we provide this article for you to be able to comprehend with all of the importance of hiring a lawyer on your behalf to set up your business.
First and foremost, before we deal with the importance, it is crucial for you to know that by having a lawyer to assist you, you will receive a lot of benefits along the way. This will be discussed further below. So, let’s delve into it!
1. A lawyer can help to identify the rules and regulations applicable in your industry
Every type of business has their own rules and regulations to be complied with. Therefore, with all of the information that you have in relation to your business, a lawyer can help to identify what type and in furtherance to that, will help you to determine if you need to have a license, minimum paid up capital requirements, and also for Bumiputera requirement (if any).
Without hassle, your lawyer will help you by preparing all necessary documents before you start to set up your business. Meanwhile, you have to ensure that you have what your lawyer needs. Therefore, it will be easier for you and your lawyer to proceed with the remaining procedures.
2. A lawyer can help to ensure that your employee hiring is done correctly and proper procedures are followed if you need to terminate them
Malaysian labour laws are known and always be perceived as to favour the employee at all times. As an employer, it is important to ensure that not only employees’ rights should be preserved but to be aware that you should not breach any of the labour practices.
Some of the laws / statutes that we have for the employment laws and practices are Employment Act & Regulations, Occupational Safety and Health Act, Minimum Wages Order, Workman’s Compensation Act, Industrial Relations Act and others.
Therefore, you will have to seek advice from your lawyer on the compliance, drafting contracts, procedures, policies in line with our laws and practices. And we are actually talking about the future, and we hope that you will not encounter with any problems regarding this matter.
3. A lawyer can identify possible gaps that would open you to legal risk such as fines, penalty and even imprisonment
Next, as we have mentioned about the laws and practices, a lawyer is much knowledgeable not only in terms of documentation, requirements under the laws and regulations, but also any possible legal risk that might happen to you.
Therefore, by way of identifying the legal risk, a lawyer can help you to ensure that the risk should be reduced and limited.
4. A lawyer can help strategize your legal contracts so that things are done properly and legally documented
If it has been decided on what type of business entity, a lawyer will help you in defining your business term in every detail.
A lawyer will help you to establish formal legal documents that are needed to ensure that everything is legally documented and will ease everything in the future, be it your relationships with other organizations, and details about your partners, employees, customers, etc.
On top of that, a lawyer will not only help you in creating contracts but will also help you to protect your intellectual property. For example, your business name by registering under trademark, or maybe by patenting your business idea. This will avoid other business entities from copying your business and keep your business confidential.
5. A lawyer will advise you whenever you enter into an agreement, so you know what you are getting into
Moving on to the next point, once you have appointed your lawyer, other than assisting you from the very first stage of setting up your business, your lawyer will help you along the way.
Your lawyer can help in giving advices to you whenever you enter into an agreement with other party. In this way, you will be able to know the pros and cons of entering into an agreement, and help you to minimise the risk and what would benefit you to ensure that this agreement will meet the unique needs of your business.
6. A lawyer can identify if a party that intends to do business with you is legitimate
It is good to be aware and mindful that at all times, doing business with anyone can also lead you to problems. Therefore, a lawyer is there to identify that the said party is indeed legitimate and help you to ensure that it is safe to enter into a contractual relationship with them.
In usual circumstances, we will normally check a company by doing a company search i.e. Suruhanjaya Syarikat Malaysia (“SSM”) online search.
7. A lawyer can expand your business
Due to the vast network that a lawyer has, he can add value by identifying the right business that you may want to purchase or merge with.
It is usual that a business owner will retain their own lawyer and help to create partnership agreements. This way you can expand your business, and who would have thought that someday, your business is growing bigger and you can easily widening your relationship with other company across the Malaysia.
8. A lawyer can assist you to sell your business equity and exit it
Too old and intend to sell the business? A lawyer is capable to sell your business in two ways which are equity sell or an asset sale.
As a seller, and on behalf of you, a lawyer will know what are the contractual restrictions or procedures that need to be done before disposing your equity or shares in the said business. Thereafter, you will no longer be entitled to participate in the whole business’ affairs.
At this point, you may have already known that it is important to hire a lawyer, that can understand your business and is able to provide advice and assistance for setting up and expanding your business.
We hope that this article is insightful and will help you in making decision on whether to hire a lawyer. Remember, a good lawyer will ensure that you never have to go to Court and has the right experience to ensure that there will be no mistakes done at the very beginning of setting up or even when entering into contractual relationship with other entities.
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