Definition Of Sme In Malaysia Lhdn

A business is considered as sme if it meets one of the two eligibility criteria.

Definition of sme in malaysia lhdn. A sme is defined as a company resident in malaysia which has a paid up capital of ordinary shares of rm2 5 million or less at the beginning of the basis period of a ya provided. Detailed definition of the category namely micro small and medium is as follows. Fsa ifsa dfia. The definition of an sme is based on the national sme s definition as follows.

1 1 presently there is no common definition of small and medium enterprises smes in malaysia. 2 definition by lhdn lembaga hasil dalam negeri malaysia tax authority sme is defined as a company resident in malaysia which has a paid up capital of rm2 5 million or less and is not related to any company with paid up capital of more than rm2 5 million annual sales turnover not more than rm5 million. New sme definition a business can qualify as an sme if it meets either one of the two specified criteria namely sales turnover or full time employees whichever is lower. Sme corporation malaysia sme corp.

Annual sales or the number of full time employees whichever is lower. It acts as the central point of reference for research. The circular on new definition of smes the circular is to inform financial institutions to use the revised definition for smes effective 1 january 2014 for statistical purposes eligibility criteria of smes for government assistance and exclusions. In addition present definitions focus mainly on smes in the manufacturing sector.

Sales turnover not exceeding rm50 million or full time employees not exceeding 200 workers. Malaysia is a central coordinating agency that formulates overall policies and strategies for smes and coordinates the implementation of sme development programmes across all related ministries and agencies. Different agencies define smes based on their own criteria usually benchmarking against annual sales turnover number of full time employees or shareholders funds.