Are you looking to start a business?
First off, you will need to identify the type of ownership suited for the business you’re starting. A business ownership refers to the person who have the control over a business legally, providing the said person with the power to dictate an operation and the function of the business.
There are a few types of ownership. Two of the most common for small and medium businesses are:
Sole proprietorship, which refers to a business owned solely by a single owner.
Partnership is a business owned by a minimum of 2 persons, and not exceeding 20 partners.
After identifying the type of ownership for your business, the next step you will take is registering your business to make it an official business entity.
You will need to meet a few requirements for you to be eligible in registering a business with SSM. Those requirements are:
- The owner(s) or partner(s) is a citizen or a permanent resident of Malaysia.
- The owner(s) or partner(s) is at least 18 years and above.
- The business operates in Peninsular Malaysia or the Federal Territory of Labuan.
As stated in section 5 of the Registration of Businesses Act 1956 (ROBA 1956), you will be required to register your business within 30 days from the date of commencement of your business.
You may register your Sole Proprietorship or Partnership business through the Suruhanjaya Syarikat Malaysia (SSM) EzBiz online platform
Here’s a step-by-step guide on:
Registering Your Business Through Ezbiz
1. Look up a name for Your Business
You may use your personal name for your sole proprietorship business. However, if you decide to use a trade name or your business is a partnership, you will need to conduct a trade name search to ensure that the name you wanted to use is still available. This can be done online or in person at any SSM office.
2. Prepare the Necessary Documentations
Gather the required documents. This includes your identification details, business particulars, permit, and license or any supporting letters, if required for the business you will be running. You will also need to provide the partnership agreement, if there is any.
3. Register an EzBiz profile
You will need an EzBiz account to register your business using the online method. If you are registering for a partnership, your partner(s) would also need to have their own individual account with EzBiz before you can proceed with the registration of your business.
To register, visit the EzBiz website, click on ‘New User Registration’ and fill in the info requested by the site. Please note that this would only register you as a user of EzBiz, and not your business with SSM.
4. Complete and submit the Registration Form
After successfully registering with EzBiz, you may login and proceed with your business registration.
Click on “My Business Services” and choose “New Business Registration”. Fill out the registration form with these information:
- Your business name
- Commencement date of your business
- Principal place for your business
- The address of the branch of your business (if any)
- Information of the owners and partners
- The type and information of the business
- Your Partnership Agreement and their particulars (if any)
For partnership, you will need to register your partners’ MyKad number, mobile number and address. A request would be sent to your partner’s account and they would need to verify and accept it before the Registration would be processed
5. Pay the Registration Fees
The amount of fees required may vary depending on the type of business structure and other factors. The amount of fees for Sole Proprietorship and Partnership registration are as follows:
- Sole proprietorship using a personal name: RM30.00
- Sole proprietorship or partnership using a trade name: RM60.00
- Registration of business branches: RM5.00 / branch per year
- Business information update: RM10.00
The payment can be made using a credit card or through FPX.
6. Submit and Wait for the Approval
Your application will be processed by SSM and you will receive a notification updating you on the status of your application. The approval may take up to a few days. Once your application is approved, you will be able to download your business certificate through the EzBiz platform.
What Should You Do After Registering Your Business?
Open up a Business Bank Account
With your business certificate, you can now open a business bank account in the name of your business. This is an important steps as separating your personal and business finances is crucial for you to be able to run your business efficiently and avoid from having to deal with any issues down the road.
Apply for Business Insurance
Now that your business is up and running, you will need to be protected against any unforeseen circumstances that may happen to your business or any entity related to it. This includes the premises your business is operating from, the people working there, and your customers. This is where insurance protection comes in.
Some of the important business insurance that you should opt for are:
- Fire insurance is a type of property insurance that provide protection for your property in case of a fire or a natural disaster.
- Peril insurance covers your property and the stocks or inventories in it, in case it were damaged due to special perils such as a gas explosion or a riot.
- Burglary insurance provide protection from losses due to damages incurred to your business capital or property due to a theft or burglary incident.
- Money insurance helps protect your business against financial losses due to damage incurred to cash or other currency instruments.
- Plate glass insurance is a must for business with a large quantities of glass installations at the property. The insurance provide coverage for those glass installations, such as glass signage, which are prone to damages due to vandalism and natural disasters.
- Public liability insurance shields your business against legal and financial liabilities that arises from a third party bodily injuries or property damages claims due to incidents that happened at or due to your business operations.
- Company insurance for employees is a range of insurance coverage that provides protection for your employee for the risk they may encounter during their employment. Such risk includes your employee sustaining an injury while they are performing their duties for your business.
These are the brief explanation for the types and coverage for each insurance. You may read a more in-depth explanation here.
You may request a quotation for your business insurance online through our website as we provide a 100% online service, or you can approach any of our licensed advisor available in your region.
Comply with Laws and Regulations
Ensure that you comply with all the relevant business regulations, including tax and safety requirements. Register for any necessary licenses or permits and thoroughly understand your responsibilities and obligations with the relevant government body such as LHDN.
Other requirements that you should take note of are:
- You need to display your Business Registration Certificate in a conspicuous place at the main or branch business premises.
- Put up a signboard displaying business name outside the business premises, and if there is more than one place of business, outside of each place of business
- Display business name and registration certificate number on letterhead, invoice, bill and other business documents.
- Register any business changes within 30 days from the date of change of main address, nature of business, branch address and owner information by submitting a Registration of Changes (Form B) or online through EzBiz.
You will need to continuously keep track of your registration renewal dates and renew your business certificates accordingly with SSM within 30 days before the expiration dates. You can renew your business certificates online through EzBiz or submitting the Application for Renewal of Business Registration (Form A1).
Failure to do so may result in the person responsible for registering the business being liable to a fine not exceeding fifty thousand ringgit or to imprisonment for a term not exceeding two years or to both according to the Registration of Businesses Act 1956 (Act197).