Being an entrepreneur is not just about having your products ready and have a team to market or sell them. Keep it mind that a company without a valid Business Registration Certificate from SSM can lead to a fine of up to RM 50,000 or 2 years in jail! These are not little time or money!
How should we get our business licence then? Read our guide below to know more!
First of all, there are several types of Businesses available in Malaysia and you need to know which is the most suitable for your current business. There are Sole Proprietorship (Enterprise or Trading), Partnership (Wandagal and Partners)
Sendirian Berhad (Sdn Bhd or Private Limited Pte Ltd)
The first two types are most popular and common in Malaysia as it involves less people and they are the cheapest to register. It is also the most popular among all new Small-Medium Enterprises (SME) owners in the country.
Sole proprietorship business can have only 1 registered owner while Partnership business can have 2 owners and a maximum or 20 registered partners.
While Sendirian Berhad (Sdn Bhd) business needs to have a minimum of ONE director who doesn’t hold a bankruptcy history and also a minimum of ONE shareholder.
Again, no matter which business type you choose, you need to register legally with the Companies Commission of Malaysia (SSM).
Below is a table to show the difference between these 3 types of business.
|Sole Proprietor||Partnership||Sdn Bhd|
|Recommended For||Small businesses||Small businesses||Medium to large businesses|
|Duration of Registration||1 hour||1 hour||Min 24 hours|
|Number of Owners||Max 1 person||Max 2 persons and 20 partners||Min 1 director and 1 shareholder|
|Potential to Get Loan Approvals||Low to Medium||Medium||Medium to High|
|Loan Approval Determining Factors||Depends on the owner’s financial strength and how well they keep track of the income, payments, and important financial documents||Depends on both owner’s combined financial strengths, capacity, and how well they keep track of their income, payments, and important financial documents.||Depends on company’s cash flow, assets, and how well the company’s accounts are kept.|
|Requirements||Must be Malaysian citizen or a Permanent Resident and 18 years old and above. Only the owner can make application.||Must be Malaysian citizen or a Permanent Resident and 18 years old and above. Only the owner can make application.||Must be Malaysian citizen or a Permanent Resident and 18 years old and above. Only the owner (director) can make application. Must have at least 1 shareholder and 1 company secretary.|
What is Companies Commission Malaysia (SSM)?
The SSM (Suruhanjaya Syarikat Malaysia) is a statutory body that regulates companies and business bodies in Malaysia. They there are to help in providing business information to the public when required.
After you have done the registration process with SSM, you will receive your Business Registration Certificate in within an hours time (This is only applicable if you register at official SSM branches in the country). The licence you received will be valid for 1 to 5 years (as your choice) and can be renewed at an annual basis.
SSM Branches are everywhere across Malaysia and there is at least 1 in every state. If you are not sure about it, the official SSM website have all the information you needed, be sure to check it out and find the most convenient branch for yourself. There is an alternative way to register your business, that is, through online portal (SSM e-lodgement). This method allows you to register for business without being in queue or visit the SSM branch, but it might need a longer time to process as compared to a walk-in registration. Still, keep in mind that any businesses that runs without a legal Business Registration Certificate will be faced with a penalty of up to RM 50,000 or a maximum of 2 years imprisonment.
Documents Required to bring for Business Registration
A few basic documents you need for a start:
1. A photocopy of yours and co-owner’s (if have) identification card (NRIC).
2. A few choices of Business Names (in case first choice is already taken)
Documents to fill up and submit at Registration
1. Business Name Approval Form (Form PNA.42) – This is only required if you are not using your own name
2. Business Registration Form (Form A)
Above are the preparations and basic forms to fill in if you are registering a Proprietorship or Partnership business only. If you are registering for a Sdn Bhd business, there are more forms to complete and more requirements to fulfill before you are done. These includes things like have a company secretary and also have directors, shareholders to come into play. To understand the full process and requirements of registering a company of Sdn Bhd and/or above, please do visit the official SSM website for the Local Company Incorporation Guidelines.
Registering an official company in Malaysia is actually really affordable now. Especially to those registering for a Sole Proprietorship and Partnership business. Below are the basic fees for your reference:
|Sole Proprietorship||Partnership||Sdn Bhd|
|Registration||Using own name (e.g. Ali Enterprise) RM 30, Using trade name (e.g. The Superman Trading) RM 60||RM 60||Between RM 1,000 to RM 70,000 (depending on the share capital)|
|Branch||RM 5 annually (per branch)||RM 5 annually (per branch)||Not stated|
|Business Information||RM 10.60 (GST included) *||RM 10.60 (GST included)*||Not stated|
|Stamps||Not stated||Not stated||RM 100|
|Request for Information of Name||None||None||RM 30 (each)|
*Note: Beginning June 1, 2018 , GST will be adjusted from 6% to 0%. Kindly confirm with SSM branch on the price changes
The fees stated above does not include all elements yet, hence a basic pricing. Again, for more details please do not hesitate to visit the official SSM site or contact your nearest SSM Branch, or even walk into one of the branch and get the info for yourselves. There is also an enquiry email at firstname.lastname@example.org shall you require any assistance in the form of an email.
However, before registering for a Business Registration Certificate, please keep in mind that having a proper business is above everything. As a conclusion, hope everyone can do the right business, with the right mind, under proper and legal registration!
Sounds difficult and complicated? Fret not! Nomazon Campus have provide company registration service to coworker as well. Let us handle all these for you! Contact us now to get more details.