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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.

Certificate Renewal

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).

An insurance is a financial agreement between a policy owner and an insurance company, in which the insurance company gives the policy owner the option to pay a premium at a specified interval in exchange for providing financial compensation when an event specified in the policy agreement occurred.

This provides the policy owner with a safety net against unforeseen losses both towards their assets and well-being.

A business insurance works in the same way, but the protection is catered for the risks and losses that happen specifically toward a business.

There are a few types of business insurance which specifically covers a different aspect and risk in a business. Here are some of the business insurance available and their coverage:

Fire Insurance

Fire insurance is a type of property insurance which provides the coverage for any loss and damage caused by a fire. This also includes the expenses due to fire related incidents. Here are the protection offered by the fire insurance:

Property Loss or Damage: The loss or damages that happened to your property due to a fire is being covered by the fire insurance. This includes damage to the structure of your building, personal belonging, and the equipment that is inside your property.
Natural Disasters: If a natural disaster such as storm, flood, or hurricane damages your business property, the cost of the repair for damage will be covered by the insurance company.
Professional Fees: The professional fees incurred for the repair or reconstruction of the damage caused by any incident specified in the policy is being covered to ensure the policy owner will have the financial means to get their business back in order.
Loss of Rental: The insurance will cover the loss of rental income while the property was rendered unusable due to the damages caused by a fire. This helps reduce the financial impact to the landlord during the repair or reconstruction process.
Alternative Premises for Tenant: The cost for providing a temporary accommodation for the tenant is being covered by the insurance company. This ensures that the tenant will be having a place to stay at while the property is undergoing repair.

Peril Insurance For Businesses

Peril insurance for businesses provide coverage for risks and perils that affect a business property which include the building and its surrounding area. The particulars covered by peril insurance are:

Natural Disasters: Any repair for damages that was caused by a natural disaster such as storm, flood, or hurricane are being covered by the insurance through this policy.
Explosions: The damage received from explosions, which might be caused by accident, gas leak, or any other unforeseen incident, is being covered by the insurance. The policy helps to cover the cost of repairing and replacing the damaged equipment and other related expenses derived from the incident.
Impact Damage: Damage caused by impact might happen to your premises, such as vehicle colliding, trees falling, or aircraft crashing into your business premises. This coverage helps to pay for the repair or replacement of the damages that happened to your property.

Burglary Insurance For Businesses

Burglary insurance for businesses provides the coverage for any damages caused by a theft or burglary incident. The insurance will cover these particulars:

Loss of Capital: The insurance provides coverage and compensation for the loss of capital which includes cash, securities, valuable documents and other forms of capital stolen due to theft or burglary.
Damage Incurred: If a burglar damages the door, locks or any other parts while breaking into your premises, the insurance will cover the cost for the repair or replacement of the parts damaged.

Money Insurance

Money insurance helps protect business against financial losses that are related to cash, currency or other negotiable instruments. This insurance covers the following aspect:

Loss of Capital: The insurance provides coverage for the loss of capital which includes cash, securities, valuable documents and other forms of capital stolen due to incidents specified in the policy.
Damage Incurred: Damage incurred to cash or securities due to specific incidents such as fire, flood, explosion, or vandalism is covered by the insurance. The policy will help reimburse the amount lost due to the incident back to the business.

Plate Glass Insurance

Plate glass insurance provides protection for businesses from financial losses incurred due to damage or breakage of glass plate such as the windows, doors, and glass structures on the premises. The coverage that this insurance includes are:

Plate Glass: The insurance will cover the repair or replacement cost for plate glass windows, doors, and glass installations that are damaged from accidents, vandalism or natural disasters.
Signboards and Other Signage: Your business signboards and other exterior signage that are made of glass is covered under this insurance policy. If the signage receives damage or is broken, the insurance can help cover the cost for the repair or replacement.

Public Liability Insurance

Public liability insurance is here to protect your business against the legal and financial liabilities that arise from a third party bodily injuries or property damage claims. This insurance covers:

Slip and Fall Injuries: If a third party slips and falls while being in the vicinity of your property and sustained any injuries, your insurance policy will help to cover the medical expenses, legal fees, and any other cost caused by the injury claim.
Medical Payments Coverage: The immediate medical expenses of an injured third party are being covered by the insurance policy. This will help reduce the likelihood of being served a lawsuit from the parties involved.
Legal Fees and Defense Costs: The policy specifically covers the legal and defense cost associated for defending against a lawsuit claims that alleges negligence.
Property Damage: If your business accidentally damages a third-party property, such as a customer’s vehicle or a neighbouring property, the policy will help cover the cost of repair or replacement for the damage.

Company Insurance For Employees

Company insurance for employees involves insurance coverages that protect the employees’ finances and address the various risks they may encounter during their employment. These insurance policy typically works by covering a few aspects which are:

Slip and Fall Injuries: While slip and fall injuries are usually being covered under the public liability insurance, the employee’s insurance will cover the same incident if it happens to an employee. The insurance will cover the medical expenses and wages lost during the time they were rendered unable to work.
Employee Disability Coverage: The employees who are temporarily unable to work due to illnesses, injuries, or disabilities will be given financial support for their medical expenses, rehabilitation, and the income lost during the duration.
Life Insurance: provide death benefit to the beneficiary, which is usually the employee’s family or designated beneficiaries, in the event of the employee’s death while being covered under the policy.

Category: blog

Starting A Business: A Step-By-Step Guide on Registering Your Business