If you are a foreign national looking to register your company in Malaysia, it is best for you to look at the options you have before you make your final decision. What type of company do you want to register exactly? The options are as follows:
- Sole proprietorships
- Limited liability companies
In this article, we will focus on how to establish a partnership in Malaysia.
The definition of a partnership company is as follows:
A partnership company is defined as a business whose profits and management options are shared between two or more individuals, which means, in essence, the business has two or more owners.
In order to establish a partnership company in Malaysia, you will need to carefully follow the outline the SSM gives.
If you’re in need of any help regarding registering your partnership company in Malaysia, do contact us here at S&F Consulting. We at S&F Consulting are a business consulting group. We strive to make your registration process as simple and clean as possible. As officially registered agents in Malaysia, we are more than qualified to act on your behalf for anything that needs to be done.
So, you may just sit back and relax. In the meantime, we have prepared a summary of events that will occur during the registration process. You may use this as a guideline or an overview of what your business registration will entail for you.
It is to be noted that the Companies Commission of Malaysia, or in BM, the SSM (Suruhanjaya Syarikat Malaysia) enforces the Companies Act. This means that all proceedings regarding your business registration will occur under this body.
The SSM is the authoritative body that looks over all affairs with regards to businesses and companies in Malaysia. This is a merging body formed in 2002 between the two prior different bodies; the Registrar of Companies and the Registrar of Businesses.
If you are not a Malaysian national, you will have to be a permanent resident of Malaysia to register for a partnership. You will also have to be above the age of 18 to register for this.
Examples: If you would like to have more information about the partnership companies in Malaysia, do take a look at our article here.
Steps to establishing a partnership company in Malaysia:
The process for a partnership is fairly simple and follows almost the same regulations for registration as a sole proprietorship. Before you begin the partnership registration process for your company do ensure you have the following pre-requirements:
- Both or all partners should have a valid Malaysian Identity card or a valid permanent residency.
- Both or all partners should be above the age of 18.
Step 1- Preparation of documents
Firstly, you will have to submit the following documents along with a completed application form to the Registrar of Businesses.
- A clear copy of your Identity Card (IC) or your permanent residence card in Malaysia
- A clear copy of your partners’ Identity Cards (IC) or your permanent residence cards in Malaysia
- The proof of payment for the processing fee:
- A sole proprietorship using the name on your identification document carries a registration fee of RM30
- A sole proprietorship using a different name to the one on your identification document carries a registration fee of RM60
- To register any additional branches calls for a fee of RM 5 per branch
- A copy of your business information, this submission will be RM10
- Clear copies of the following:
- License to conduct business
- A document that lists and explains your business name and activity/activities.
Step 2- Register your official business name
Next you will have to complete the form PNA.42, which is the Business Name Approval Form. Along with this you need to submit at least three potential names for the Registrar of businesses to choose from. This form will have to filled with the following details:
- Name of your business
- What type of business you are running
- The date of commencement
- The address of your main office
- The addresses of any additional branches
- Information about the owners
Do note, if you are to have a different trade name to the name listed on your identification document, you will require prior approval from the Registrar of Businesses.
As you can see, the process towards registering a partnership company in Malaysia is very simple. However, if you have any doubts or additional queries, do contact our friendly team of customer service staff. They are online 24/7 and will be more than happy to assist you and put your mind at ease.
Related article: How to register a partnership in Malaysia? – A step by step guide
Frequently Asked Questions
How much will this process cost me?
The SSM office usually imposes a processing fee of RM 30 to RM 100. This fee varies depending on your company’s name.
What are the repercussions if I don’t register my partnership company?
If you do not legally register your business, you could face legal action being taken against you. This could be either a fine of up to RM 50,000 or a prison sentence of two years.