How to Register a Business in Malaysia: Step-by-Step Guide (2025)

Starting a business in Malaysia can be exciting, but also confusing—especially if it’s your first time.

There are several steps to follow, and some legal rules you need to understand.

Whether you are starting a small business or growing an existing one, knowing how to register your business the right way is very important.

It helps you build a strong and legal foundation for future success.

This guide is written for you who want to know to register a business in a simple and clear way.

By the end, you’ll know what to do to register your business and get started on hiring the right people to help it grow.

Let’s dive in.

4 Simple Steps to Register a Business in Malaysia

Step 1: Choose the Business Structure

Before starting a business in Malaysia, you need to choose the right business structure. Each has its own rules and risks. Here are the main types:

Sole Proprietorship: Owned by one person. Easy to set up and low cost, but the owner is responsible for all debts and losses.
Partnership: Owned by two or more people. Partners share profits and are equally responsible if the business has problems or debts.
Limited Liability Partnership (LLP): A mix of partnership and company. The business is a separate legal entity, so owners are not personally liable for debts
Sendirian Berhad (Sdn. Bhd.: A private limited company. Good for growing businesses. It offers legal protection and can raise funds, but must follow stricter rules like hiring a company secretary and submitting yearly reports.

Choose a business structure that fits your goals and the level of risk you’re willing to take.

Step 2: Choose a Business Name

Your business name represents your brand. It should be unique and not too similar to existing names.

If you are using your personal name (only allowed for sole proprietorships), you can proceed without approval.

But if you want to use a brand or trade name, you must submit a name application form: Form PNA.42 for businesses or Form 13A for companies.

SSM will review your name and check if it’s available. If approved, the name will be reserved for 30 days (or 3 months for companies).

Try to avoid words that sound like other companies, or words that may require extra government approval, like "Royal" or "National."

Step 3: Prepare the Required Documents

Once you have your business name, it’s time to prepare the documents.

For sole proprietorships and partnerships, you’ll need:

A copy of MyKad for each owner or partner
Form A, which includes basic info like the business name, address, starting date, and partner details
Form PNA.42 if you’re using a trade name
Business licenses or letters from related authorities (if your business needs them)

For companies (Sdn. Bhd.), the process is more detailed:

MyKad copies for all owners and directors
Form 13A for name search
Information about your company structure, address, and promoter details
Form 6, confirming you meet legal requirements
Form 48A, declaring that your directors are eligible
Company Constitution (optional but useful)

If you’re forming a Limited Liability Partnership, you’ll go through the MyLLP system. You’ll need:

A name reservation
Partner details
Online forms submitted through the SSM4U Portal

Step 4: Register with SSM (Suruhanjaya Syarikat Malaysia)

SSM is the body responsible for business registration in Malaysia. You can register by visiting a branch or by using their online platforms:

EzBiz: sole proprietorship and partnership
MyCOID: Sdn. Bhd. companies
MyLLP: LLPs

For walk-in registration, all business partners must be present. For online registration, partners need to verify themselves through the system.

Once submitted, SSM usually takes between 5 to 10 working days to process your application.

When your business is registered, you’ll get a Certificate of Registration or Incorporation. This certificate proves that your business is legally recognised in Malaysia.

5 Legal Requirements Must Follow for Business Registration

Several legal conditions must be met. These rules depend on your business type and whether it’s owned by locals or foreigners.

Below is a clear breakdown of the key legal requirements:

1. Minimum Capital Requirements

Sole Proprietorship or Partnership: No minimum capital required by law.
Private Limited Company (Sdn. Bhd.): The minimum paid-up capital is just RM1.

However, some industries, especially for foreign-owned businesses, may require higher capital, such as RM500,000 to RM1 million, depending on the sector (e.g., wholesale, retail, services).

2. Local vs Foreign Ownership Rules

Malaysian Citizens and Permanent Residents can register any business type.

Foreigners can fully own a Sdn. Bhd. company in most sectors, but some industries (like banking, agriculture, and education) may require partial or full local ownership.

A foreign-owned business must usually have:

At least one local director who resides in Malaysia
A registered business address in Malaysia
Compliance with special licensing conditions, if applicable

3. Age and Residency of Owners or Directors

Business owners or company directors must be at least 18 years old.
For Sdn. Bhd., at least one director must have a residential address in Malaysia.
Foreign directors may need a work permit or a valid visa, depending on their involvement.

4. Appointment of Company Secretary (for Companies and LLPs)

A company secretary is required for Sdn. Bhd. companies and Limited Liability Partnerships (LLP). The secretary must be:

A Malaysian citizen or permanent resident
Licensed by the Companies Commission of Malaysia (SSM)
Appointed within 30 days of company incorporation

5. Licenses, Permits, and Regulatory Approvals

Some businesses require extra licenses before they can operate, especially those in:

Food and beverage
Education
Health and wellness
Professional services (law, medicine, etc.)

These permits must be applied for from the relevant authorities, such as:

Local councils (PBT)
Ministry of Health (MOH)
Ministry of Education (MOE)
Industry-specific regulators (e.g., MDEC, BNM)
JAKIM Halal Certification

How to Register a Foreign-Owned Business in Malaysia

Foreigners can register a company in Malaysia, especially an Sdn. Bhd., which is open to 100% foreign ownership in most industries.

However, there are conditions.

You’ll need:

A minimum of one local director (can be a permanent resident)
A business address in Malaysia
Company secretary and compliance with the Companies Act 2016
Additional licenses for regulated industries

The business must also meet requirements for paid-up capital, which can vary depending on the sector.

For example, foreign companies in retail or wholesale may need RM1 million in capital.

How Long Does It Take to Register a Business in Malaysia?

As mentioned above, if all your documents are complete and submitted correctly, business registration usually takes 5 to 10 working days.

Some applications may take longer if there are errors, unclear documents, or if extra approvals are needed, for example, when using certain trade names or applying for foreign ownership.

Common Mistakes to Avoid During Business Registration

Many employers make small but costly mistakes during registration.

One common issue is choosing the wrong business structure, which could limit your growth or put your personal savings at risk.

Another mistake is submitting incomplete documents, such as missing forms, unclear MyKad copies, or missing licenses. This can delay your approval or result in rejection.

Some also forget to check if their business name is already taken. Always use the SSM online name search tool before applying.

After Registering Business, What Employers Do Next?

Once you’ve received your registration certificate, you’re not done yet. There are a few important things to do next:

Open a business bank account using your certificate and business details
Register for SOCSO, EPF, and EIS if you’re hiring employees
Apply for local business licenses, especially if you’re opening a shop, restaurant, or offering regulated services
Register for income tax and prepare for yearly returns and bookkeeping
Create a simple record-keeping system so that you're ready for any future audits

Frequently Asked Questions

How much does it cost to register a business in Malaysia?

For sole proprietorships and partnerships, fees range from RM30 to RM60 per year. For Sdn. Bhd., costs vary depending on services used, but typically start around RM1,000+ with secretarial and document fees included.

Do I need a local director for my Sdn Bhd business?

Yes. At least one director must live in Malaysia and be over 18 years old. For foreign-owned businesses, this could be a Malaysian citizen or permanent resident.

Can I register my business online in Malaysia?

Yes. You can register sole proprietorships via EzBiz, companies via MyCOID, and LLPs via MyLLP (SSM4U portal).

What documents are needed to register a foreign-owned company in Malaysia?

You’ll need a copy of the director’s passport, a local business address, a paid-up capital declaration, and other forms like Form 13A, Form 6, and Form 48A.

How can I update my business registration details?

You can visit an SSM branch or use their online system to update your business name, address, directors, or other details.

Need to hire new employees in Malaysia?

Post your job ads on Maukerja, Ricebowl, LinkedIn, and Google with AJobThing to find the best talent today!