If you are an entrepreneur and looking to start a business, a sole proprietorship may be the solution for you. There are numerous benefits to owning your own company. This type of business is becoming popular with many Malaysians. However, there are multiple things you need to consider before taking your first step towards business registration.
To help you out, we’ve included the following guide to get you started.
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What Is a Sole Proprietorship?
A sole proprietorship is the simplest form of business ownership in Malaysia. Unlike larger corporations, this type of business is not a separate entity from the owner. Essentially the owner and the company are the same, everything you earn through your business counts as personal income.
Additionally, your personal assets and things you own are liable if you need to make any outstanding payments.
Let’s Compare: 5 Different Types of Business Entities in Malaysia
How Do You Register A Sole Proprietorship in Malaysia?
The first thing you need to do when setting up a sole proprietorship is to go through the registration with the SSM (Companies Commission Malaysia).
To do this, you will need to register your new business at a local SSM branch.
You then need to name your sole proprietorship, either as your personal name or a business under which you trade. If you use your personal name, you do not have to wait for approval, and your business can start immediately.
However, if you want to register your business in Malaysia under a trading name, you’ll have to submit your request to the SSM. You will also have to adhere to these guidelines as well. You’ll then have to wait for your name to be approved. In addition, your business can be registered for any length of time up to five years.
However, you also need to pay certain costs. These include:
- A fee of RM60 every year if you register under a trading name
- A fee of RM30 every year if you use your personal name
How Can WeCorporate Help?
Upon setting up a sole proprietorship in Malaysia, WeCorporate can help you to stay compliant by helping you manage your accounting and bookkeeping, and tax matters. We are a leading integrated corporate services provider in Malaysia with decades worth of experience in the region. If you’d like to know more, get in touch with us today.
FAQs on Sole Proprietorship Registration in Malaysia
- Yes, you must be a Malaysian national or a Malaysian citizen to register a sole proprietorship in the country.
- In Malaysia, there are numerous funding options for a sole proprietorship. For example, you can look into the various financing options available at SME Bank. There are also other funding opportunities for young people, such as the Young Entrepreneur Fund, which is available to entrepreneurs aged 18 to 30.
- A sole proprietorship provides numerous advantages to business owners. These include:
- Less paperwork
- Low company costs
- Simple execution
When you start a sole proprietorship, you have a lot of room to expand your business. If you decide to grow, you can become a partnership or a private limited company. You will also have complete control over your company.
Register Your Company in Malaysia Today
Take the first step toward becoming a sole proprietor in Malaysia!