Owning, operating and managing a business is now the new norm in this mid-pandemic, digital ecosystem we live in. Even if you are a 9 to 5 kind of person, you probably have a side gig going on to supplement your income.
Kudos to you for being a business-minded personality, but wait for a second, before you can take that business to the hordes, you’ll need to first register your business with our local statutory body, the Companies Commission of Malaysia, more commonly known as SSM.
Types of Businesses in Malaysia
First things first, figure out what type of business you have or want to start. The 3 most common types of businesses are;
- Sole Proprietorship
- Partnership
- Sendirian Berhad (Sdn Bhd or Private Limited)
The most popular in the Small to Medium Enterprises (SME) community is the type 1 and 2. A sole proprietorship is a business that can have only one registered owner. Partnerships on the other hand allow anywhere from 2 to 20 registered partners.
Sendirian Berhad requires a minimum of 1 director, clear of any bankruptcy statuses and a minimum of one other shareholder, before you ask, note that this cannot be the same person.
Registration of your business with SSM
A few things you should know before heading to an SSM office to register your business. First of all, you can do it online now. Secondly, every business needs a name.
Business name registration guidelines:
The name of a business is the title that is used as identification or introduction of the business. There are two ways that you can name your business here in Malaysia.
A Trade Name. This is a proposed business name that requires prior approval from the Registrar of Business (SSM).
A Personal Name. This is your name as per your NRIC, under this category you will not need your business name registration reviewed for approval.
The procedure for an application requires you to use the PNA42 form, and if your proposed name is a little bit out there, you might also need to provide supporting documents to justify the use of that name. There is a full list of guidelines to follow when naming your business so check out this link if you’d like a glance through before deciding on the name for your business.
Have a few backup names ready just in case. There are tens of thousands of business names registered in Malaysia, you never know when great minds think alike.
Register online or offline
Once you have got the business name down, you can now register your business with SSM both online or offline over the counter at any SSM office. Ezbiz Online is SSM’s online portal, where you can do your registration 100% online now. SSM’s valid website URL is ezbiz.ssm.com.my so be sure to double-check that before you enter any personal information onto an unknown website.
All you have to do is sign up, create an account and complete your user verification, Ezbiz will ask you to upload a series of personal documentation for their processing. User verification can take up to 5 working days, only then can you move on to business registration. Due to Covid-19, this is the recommended route, then again why go to a counter when you can do this from the comfort of your home, in your pyjamas.
Once you have been verified follow the steps provided to complete your business registration and payment. A word to the wise, be very careful filling in the business registration form, if you do make a mistake that needs to be corrected later, there will be a cost involved. Save the RM20 and double-check that business name spelling before you hit “Submit”.
Requirements and Fees
Fees involved in the registration of a business vs the registration of a company are 2 different things. In this article, we are going to concentrate on the registration of a business via SSM.
Business registration requirements are that the business owner is a Malaysian Citizen or Permanent Resident of Malaysia. Business owners must be 18 years or older and only an owner or partner can make the application for registration. The rules apply to all the owners or partners in the case of a partnership.
Registration fees:
- Sole proprietorship using personal name as stated on the identity card: RM30.00
- Sole proprietorship or partnership using trade name: RM60.00
- Registration of branches: RM5.00 for each branch
- Business Information Print-out: RM10.00
Upon complete registration and payment, a Business Registration Certificate can be obtained.
Why should I register my business?
For practical and legal reasons, please register your business. Under the Registration of Business Act 1956, if you are found guilty of carrying on a business without registration to SSM, you will be fined an amount not exceeding RM 50,000 or imprisonment for a term not exceeding two (2) years.
Secondly, registered businesses have greater access to loans, grants and financing, and maybe even some free money. With a global pandemic hitting our local economy, the Malaysian government has released several stimulus packages to aid small businesses. If you’d like to know more about these opportunities, check out our article on SME Grants.
Last plus point? If you are a registered business then you’d be eligible to apply for financing with Funding Societies. We are on a mission to grow Malaysian SMEs, and we’d love to be a part of your business journey. If you are a small business looking for a bit of Micro Financing then don’t miss out on this opportunity, click the button below and come visit us.
Sources:
MyGovernment, https://www.malaysia.gov.my/portal/content/30303
Suruhanjaya Syarikat Malaysia, https://www.ssm.com.my/Pages/Home.aspx
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Need funds for your business? Click here to get financing for your SME.
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