How to register your business in Malaysia - Required information

The one-stop solution for you when you want to register a business in Malaysia is provided by the Companies Commission of Malaysia (SSM). The Companies Commission of Malaysia or Suruhanjaya Syarikat Malaysia in Malay (SSM in short) is a constitutional body created under the Act of Parliament to regulate corporate and business affairs in Malaysia. Created in 2002 under the Companies Commission of Malaysia Act 2001.

The SSM belongs to the parent department of Ministry of Domestic Trade, Co-Operatives and Consumerism. SSM primarily carries out the functions of the Registrar of Companies and Registry of Business with its headquarters at Menara SSM, KL Sentral, Kuala Lumpur. Not only is the Commission the sole authority to incorporate companies and control businesses, it offers the general public all information regarding companies and businesses in Malaysia.

how to register your business in Malaysia

The Sole Proprietorship, Partnership and Sendirian Berhad or Private Limited Liability Company are the most popular business entities chosen by potential entrepreneurs to operate in Malaysia. If your business is totally owned by a single person who uses his or her personal name according to his or her identity card or trade name, it will be classified as a sole proprietorship business.

In the case of partnership, the business can be owned by two or more individuals but cannot exceed twenty persons. Furthermore, in a partnership you cannot use the identity card name as a business name. Sendirian Berhad or Private Limited Liability Company is a company limited by shares. Therefore, the nominal value of the shares a person holds will define his or her personal liability in such a company. It must have a minimum of two subscribers to the shares of the company and a minimum of two directors by law.

You can register your sole proprietorship or partnership business using personal name or a trade name. If the business name is your personal name as mentioned in the identity card, then you do not need to apply for a business name. The trade name will be the name of the proposed business and you must attain prior approval from the Registrar of Business.

Next you have to complete the business registration form and provide the basic information as required. Remember, each and every business owner and partners must sign the completed form. Additionally, the owner or all partners must be present at the counter for registration. You will need to attach supplementary documents like a permit, license or supporting letter for the type of business as well as the approval or supporting letter from the appropriate agency if needed by the Registrar of Business.

According to Malaysia’s business law, owner or partners must be a Malaysian citizen or permanent resident of the country. Proprietor or partners must be aged 18 years and above. Application can only be submitted by the owner or partners of the business.

The registration fee for a sole proprietorship using a personal name as mentioned in the identity card is RM 30. For a sole proprietorship or partnership that uses a trade name, the registration fee is RM 60. For registration of branches, you will need to pay RM 5 for each branch. And for business information, the fee is stipulated at RM 10 only.

When you intend to register a company limited by shares in Malaysia, you must bear in mind that the business form must be up to the standards spelled out in the Companies Act 1965. Your company’s trading name must have the words “Sendirian Berhad” since you are applying for a private limited liability company.

The prerequisites of registering a company limited by shares state that: your company is obliged to have a minimum of two shareholders as specified in the Section 14 of the Companies Act. As per Section 122 of the Companies Act, you must appoint a minimum of two directors for your company. It is mandatory on your part to employ a company secretary and that person must be approved by the Companies Commission of Malaysia or SSM.

A member of a professional body can also be your company secretary if only the body is approved by the Minister of Domestic Trade Cooperative and Consumerism. The most important requirement for incorporating a private limited liability company under the Companies Act 2016 states that at least a single director and a promoter’s main place of residence must be in Malaysia and should generally live in the country.

The Incorporation process for a Sendirian Berhad (Sdn Bhd) commences with the application for name search. For the next procedure, you are required to submit the Incorporation Documents at the SSM not later than three months from the date of acceptance of your company’s name by the Commission. In case you fail to do so, you will have to file for a fresh application according to the process mentioned above.

When you apply for the incorporation of your Sdn Bhd, you must pay the registration fees according to the authorized share capital you intend to invest. Once you have completed the incorporation process properly and submitted the incorporation documents according to their requirements, the SSM will issue you a Certificate of Incorporation. Upon the completion of the incorporation process, it is essential for you to open a business bank account and register with the appropriate authorities in Malaysia.