(If you don’t know which business entity to choose and what are your options, go to this article first , To Choose Suitable Business Entity)
WARNING: Conducting business without registration is an offence which is punishable with fine not exceeding RM50,000.00 or imprisonment not exceeding 2 years or both. No doubt SSM got better things to do than hustling small timers but it means some organisation (such as bank) will not want to do business with you because you ain’t legit.
So you decided to register a sole proprietorship or partnership as your business entity. Here is how you go about getting it registered:
SOLE PROPRIETORSHIP (1 Person) / PARTNERSHIP (2 or More Person but not exceeding 20)
Go to Suruhanjaya Syarikat Malaysia (SSM) a.k.a Companies Commission of Malaysia (CCM) office or visit EZBIZ Portal to register a business as a sole proprietorship (for Lone Ranger) or a Partnership (because what better way to test your friendship/relationship than starting a business together and let the fireworks/forest fire begin 🎆🎆🎆).
I however would advise against online registration because it can be quite unreliable and for some reason over the counter registration is much more efficient (to be fair, I’m absolutely sure the good people in SSM are tirelessly trying to improve the online system).
Registration Cost (not including transportation and karipap for breakfast -YES, GO EARLY!):
- Sole Proprietorship using personal name – RM30.00 (e.g. Abu Enterprise)
- Sole Proprietorship using trade name – RM60.00 (e.g. Ninja Solution Enterprise)
- Partnership – RM60.00 (e.g. Mojo Jojo and Partners)
What do you need to bring?
- Come up with at least 3 business names, incase a name is taken up.
- Bring a Photocopy of your Identification Card
- Completed Business Name Approval Form (Form PNA.42)
- Completed Business Registration Form (Form A)
- You and/or your partner must submit the application personally (long gone the days of Homing Pigeons)
- Moolah/Dough/Money/ Legal Tender (prepare exact sum beforehand to avoid approaching random strangers for small change, its unbecoming of a soon to be multimillion dollar company CEO/Founder.)
Important Note: Use of numbers, sign, symbols, or any of the words HERE are not allowed as part of business name – or risk being made a ping – pong ball in SSM Office.
More Important Note: If you are registering as a partnership, please make sure you sign a Partnership Agreement and deposit a copy with SSM to regulate the relationships between partners. Because I’m a cheapo and I also like freebies I’m giving out this sample Founders Collaboration Agreement/ Partnership Agreement for free for you to use as a guide.