How to Register a Sole Proprietorship in Malaysia [2019 Update] | #Womenpreneur
Now that you have an idea and a prototype for your business, you’re going to want to start thinking about setting up the legal aspects of your Malaysian business. It’s basically everything you need to run a fully legit business in Malaysia.
This particular guide will show you to register a Sole Proprietor enterprise in Malaysia.
Why Choose Sole Proprietorship (SP)?
I always recommend womenpreneurs out there to register a SP if:
You’re a first-time entrepreneur
You don’t have a lot of capital
You just want to get your business running as fast and easy as possible
In fact, if you’re just starting out, there’s no shame in using a SP to first prove your concept, get validation, and test things out. You can pursue a Sdn. Bhd. (Private Limited) later on when your business has grown and you’re seeking funding.
Before we continue, it’s also important to note that to really get the best use of this guide:
You need to be Malaysian (sorry, foreigners, it just takes longer for you and it’ll require another separate guide altogether)
You need to be of legal age, have no criminal records, etc. so the process can move on smoothly without a hitch (you’re basically an upstanding citizen)
That’s it. If everything still applies to you, then keep reading.
How to Register a Sole Proprietorship in Malaysia
It goes without saying that you should always register a company in Malaysia through correct means. This means only going through Suruhanjaya Syarikat Malaysia (SSM/Companies Commission of Malaysia) or its official agents.
There are two clear ways to register a sole proprietorship in Malaysia:
Register online (some learning curve required); or,
Register in-person at a local SSM office (still requires you to do some steps online)
In this guide, I’ll explain how you can do it online without leaving your house.
How to Register Sole Proprietorship in Malaysia Online
1. Sign up for an account at ezbiz.ssm.com.my
Note: Skip to Step 2 if you have signed up previously.
The portal is called EZ-BIZ but it isn’t quite as ‘easy’ as it sounds. So I’ll keep my language simple and try to explain the steps clearly.
Go to the ezbiz.ssm.com.my and click on “Sign Up” (above).
In the next page, fill up your details and click “Register” (below).
Keep following the steps on the screen until registration is complete.
2. Sign in to the Ebiz portal
Go back to ezbiz.ssm.com.my and sign in to your account with your particulars.
You will arrive at this page (dashboard):
Hover your cursor over “My Business Services” (1) and click on “New Business” (2) to register a new business.
In the next page, fill up the entire form below.
Ref. No.: Leave this blank
Name Type: Choose whether you want to use your Personal Name or Trade Name for your business. Both have no real consequences.
Business Name: For this, it’s important to refer to their Business Name Guidelines to ensure that you choose an appropriate name for your business. The best formula for business name is: [General name] [Industry] [Type of business]. Good examples: Cammy Food Enterprise, Cammy Design Studio, Cammy Biscuit Wholesale.
Business Start Date: Choose either today or in the future. This date has no real consequences other than being the “official” date of your business commencement. This date may be used while applying for a business bank account or other areas of business in the future.
Partnership Agreement Date: If you’re in a partnership, ensure you have a partnership agreement first. Input the date of your agreement here.
Incentive: If you’re not on any incentives, leave on “Not Applicable”
Registration Period: Choose how long you want to register your company for. The number of years you choose will affect your registration payment total later.
Business Info: Always choose YES. It’s an extra RM10.00 for Business Info but it may come up necessary in other areas of business in the future.
Incubator: If your business is not a part of any incubators, leave at “No”. Incubators are programs like MaGIC, Cyberview, MAD Incubator, others.
Is Online Seller?: Choose YES if you plan on selling products/services online.
Address: You can use your home address if you’re a home-based business. Otherwise, input your office address here.
3. Fill up Branch Information
Skip this step if you have no branches. Otherwise, complete the form as best as you can.
4. Fill up Business Information
This step is pretty straightforward.
Describe the nature of your business (above image) as best you can and remember to “Add Business Code”. Clicking this will open up a new pop-up (below image) where you can search for keywords pertaining your business and automatically add the assigned business code to the form.
Once done, click “Next”.
5. Owner’s Information
If you’ve registered correctly in Step 1, your information should show up automatically here and the status should have already been verified.
If it doesn’t show up, manually input your IC/MyKAD number in the field (1) and follow any instructions until your status is VERIFIED. (2)
6. Fees & Declaration
This step is also pretty straightforward. Based on the number of years you chose in Step 2 and the branches you’ve declared in Step 3, the pricing here will differ.
Sole Proprietorship registration at SSM costs RM60.00 (one year) and business info is RM10.00.
Tick the box to confirm and click on “Preview”. In the next page, you can preview your details and proceed with payment. You may pay with credit cards or online banking.
Congratulations, you’ve successfully completed the registration process!
But it’s not over yet. Now, your registration is pending review by SSM and this is actually the most confusing part.
How to Check The Status of Your Sole Proprietorship Application
To check the status of your application, go to your account dashboard and under “My Business Services” click on “List New Business Registration”.
Why did SSM decide to call it that? I have no idea. The terminology used in the EZBIZ website is a little baffling, if not plain misleading. It really should be changed to “Check Your Status”.
Anyway, once you’re in the “list” page, you’ll see a list of your applications, separated by its status in a tabbed menu.
Draft: Your application is saved as a draft
In Process: Your application has been submitted and is pending approval
Query: Your application has been returned to you for amendments
Approved/Reject: Your application is approved/rejected
Cancel: Your application is cancelled
Incentive: Not sure what this is for
Again, why they used a tab menu is beyond me. They could just add another column next to the Action column to reflect the status.
With this system, you have to check every tab to see what stage your application is at, and there are no notifications here to tell you if an application is in Query or Approved/Reject, or so on. You have to manually check it (perhaps daily), which is more troublesome than helpful.
If you’ve done everything right, your application should be accepted with no problems. But if there is a problem, it’ll appear under the Query (3) tab with a note explaining what needs to be amended and what actions you can take. Follow the instructions carefully and you should be cleared.
The good part though? The whole process could take as little as one hour, from start to finish. Once accepted, you can download the business certificate and forms directly from your account after three days.