Types of Business Registrations in Malaysia

Are you an entrepreneur or business owner in Malaysia looking to register your business? Well, you’re in luck because there are several types of business registrations available to you! Each type of registration has its own advantages and disadvantages, and it is important for you, the business owners, to carefully consider the options before choosing the best one for your business. Additionally, there are different legal and regulatory requirements for each type of registration, which should also be taken into account when making a decision.

Sole Proprietorship

Firstly, let’s talk about sole proprietorship. This is the simplest and most common type of business registration in Malaysia. It is suitable for individual entrepreneurs who want to start a business on their own. To register as a sole proprietor, you need to be:

• a Malaysian citizen or permanent resident, and
• you need to be at least 18 years old

The registration process is relatively straightforward, and you can do it online or at the Companies Commission of Malaysia (SSM) office.

Here are the documents required to register for a sole proprietorship:

• Copy of owner’s identity card or passport
• Business name approval letter from Companies Commission of Malaysia (SSM)
• Business registration form (Form A)

Partnership

Next, we have partnerships. This type of business registration is suitable for two or more individuals who want to start a business together. There are two types of partnerships in Malaysia:

Here are the documents required to register for a partnership:

• Copy of partners’ identity cards or passports
• Business name approval letter from SSM
• Business registration form (Form D)
• Partnership agreement (optional)

Private Limited Companies (Sendirian Berhad)

Moving on, we have private limited companies (Sendirian Berhad or in short, Sdn Bhd). This is a separate legal entity from its owners, which means that the company can own assets, enter into contracts, and sue or be sued in its own name. Shareholders of a private limited company have limited liability, which means their personal assets are not at risk if the company faces financial difficulties. To register a private limited company in Malaysia, you need at least one director and one shareholder. The registration process is more complex than sole proprietorship or partnerships, and you will need to engage a company secretary to help you with the process.

Here are the documents required to register for a Sendirian Berhad (Sdn Bhd):

• Copy of directors’ and shareholders’ identity cards or passports
• Business name approval letter from SSM
• Memorandum and Articles of Association (MAA)
• Form 48A (Statutory Declaration by Director or Promoter Before Appointment)
• Form 6 (Declaration of Compliance)

Public Limited Companies (Berhad)

Lastly, we have public limited companies (Berhad or in short, Bhd). This type of business registration is suitable for businesses that want to raise capital from the public by issuing shares. Public limited companies have the advantage of being able to access a larger pool of capital, but they are also subject to more regulations and reporting requirements. To register a public limited company in Malaysia, you need at least two directors and two shareholders, and the company must have a minimum authorized share capital of RM 500,000.

Here are the documents required to register for a Berhad (Bhd):

• Copy of directors’ and shareholders’ identity cards or passports
• Business name approval letter from SSM
• Memorandum and Articles of Association (MAA)
• Form 48A (Statutory Declaration by Director or Promoter Before Appointment)
• Form 6 (Declaration of Compliance)
• Form 13 (Certificate of Incorporation)

It’s important to note that the required documents, whether it be to register a sole proprietorship, partnership, Sendirian Berhad (Sdn Bhd), or Berhad (Bhd), may vary depending on the specific circumstances of the business and the registration process may take several weeks to complete. It’s recommended to consult with a professional, such as a lawyer or accountant, to ensure that all necessary documents are prepared and submitted correctly.

And that’s it for our overview of the different types of business registrations in Malaysia. We hope you found this informative. If you have any questions or comments, please leave them down below. Don’t forget to like and subscribe to our newsletter for more informative contents like this one.