How Can You Register a Business in Malaysia?

Registering your business is the first and foremost duty of an entrepreneur. Read this article to know
the details of registering a business in Malaysia.

In Malaysia, there are 3 broad categories of businesses:

1. Sole Proprietorship: This type of business requires a single registered owner. This is ideal for small businesses.
2. Partnership:This type of business is owned by two or more registered owners/partners.

You can register these two business types under the Business Registration Act
of 1956 (ROBA 1956).

3. Sendirian Berhad/Private Limited Company:
   This type of business requires a shareholder along with a director who should not be a bankrupt. This is ideal for medium to large businesses like education, banking, oil & gas, and tourism. All the business needs must be registered legally with the Companies Commission of Malaysia (SSM), which is a statutory body that regulates businesses in Malaysia. You can get the Business Registration Certificate within 1 day.

Registration Process

Irrespective of your business type, these are the steps you need to follow to register your business:

• You can register your business either in your name or a trade name.

• Fill up the Business Registration Form (Form A) with the mandatory details including the Business name, start date of the business, place of business, branch address, information of owner/partners,and business type.

• 
  Both the owner and the partners must sign the form and they should be present at the time of registration.

Documents Required

• Business Name Approval Form

• BusinessRegistration Form

• Approval Letter from the relevant agency by the Registrar of Business.

Eligibility Criteria

• You must be a Malaysian citizen or a Permanent Resident.

• The age requirement is 18 years and above.

Registration Fees

You need to pay the following fees at the time of registration:

• Sole proprietorship using a personal name - RM30.

• Sole proprietorship/partnership using a trade name - RM60.

• Registration fee for each branch - RM5.

• Print-out of Business Information - RM10.60.

General Guidelines

Keep in mind the following guidelines to operate your business better:

• The registration of a new business must be done within 1 month (30 days) from the commencement date. Remember that if you fail to register your business, you are actually committing an offence under the ROBA 1956. If you are found guilty, you have to pay a fine of RM50,000 or face imprisonment for 2 years or both.

• A registered business should never break any laws or be used for any unlawful activities.

• Though your business is registered with SSM, yet you are responsible toobtain business licence, business permit or approval letters from other relevant authorities.

• You can register your business at a SSM counter.

• Business Registration can be made for a minimum of 1 year and maximum of 5
  years.

When all requirements mentioned in this article are met and your application is approved, then your business/company will receive a Certificate of Incorporation by SSM.

Done with Registration?

Looking for a loan to expand an existing business?

Many Malaysian banks offer business loans to help entrepreneurs grow their business and optimise their profitability. 

Source:How Can You Register a Business in Malaysia?