1) What is partnership?
Partnership registration is the common and legal business structure option in Malaysia. Partnership is governed by Companies Commission of Malaysia (Suruhanjaya Syarikat Malaysia) and Registration of Businesses Act 1956.
2) What are the requirements to form a partnership in Malaysia?
Partners must be a Malaysian Citizen or Permanent Resident of Malaysia, aged 18 years and above. Minimum two partners are required to form a partnership in Malaysia.
3) What are the information needed to register a partnership in Malaysia?
The information needed to register a partnership are:
- Copy of all partners’ identity card (I/C)
- Proposed Name of the business
- Complete Registration of a new business – Form A (Application form)
- Nature of business of the business
- Letter of approval from Government Agency (if applicable)
4) How long will it take to incorporate a partnership in Malaysia?
The business can normally be set up within few hours to 1 working day.
5) What are the procedures to incorporate a partnership in Malaysia?
|Complete SSM Form||Conduct Name Search||Pay Annual Fee||Your Company Is Ready|
|You need to visit nearest SSM with your photocopy IC and fill in the business registration form. It can be obtained at SSM counter||SSM officer will check on availability of your proposed business name||Once everything confirmed, you need to pay your annual fee as follow: a) Trade name – RM60 per year b) Branch (s) – RM5 per year each||The business registration certificate can be obtained at SSM counter within 1 hour after payment made|
6) Can foreigner incorporate a partnership in Malaysia?
No. Partnership is only available for Malaysia Citizen or Permanent Resident.
7) How much is the yearly maintenance fee of a partnership in Malaysia?
Partnership need to pay RM60 (trade name) per year to renew the business registration. The business can be registered or renewed for a period of 1 to 5 years and not exceeding 5 years with the specified prescribed fee.
8) What is the major different between sole proprietorship / partnership and private limited company (Sdn. Bhd.)
The major different is the liability to creditors. The liability of the shareholders of the private limited company (Sdn. Bhd.) to creditors is limited to capital originally invested while sole proprietorship/partnership have unlimited liability to their creditors. Private limited company (Sdn. Bhd.) is a legal entity, it will not be terminated in the case of changes in shareholders or directors.
9) Can I determine the date of incorporation for a partnership?
Some business owners may wish to register their business at certain date due to personal favor, fengshui, or private reason. However, due to the various type of unforeseen factors from Companies Commission of Malaysia (SSM) such as staff absenteeism, online system corruption and etc, business owners are not able to determine the date of incorporation of the new business.
10) Can a partnership change its status to sole proprietorship?
Yes, A partnership can change its status to a sole proprietorship (trade name) or from sole proprietorship (trade name) to partnership by registering such a change using (Form B) and registration fee is RM20.00.
11) How to terminate/close a partnership?
Partnership can be closed/terminated by notification to Registrar or expiry of the registration. Business owner shall notify the Registrar within 30 days from the date the business ceased operation.
In the case of the death of the partner of the business, the partnership will be dissolved directly. The person responsible or the next –of-kin of the deceased owner shall within 4 months from the date of such death notify the Registrar.
Complete Notification of Termination of Registered Business ((Form C) for active business. Form C is not required to be submitted for business that has expired.
12) Can I set up / incorporate partnership myself?
Yes, you can visit nearest SSM with all partners’ photocopy IC and set up/incorporate partnership yourself.
13) Who shall set up a partnership?
Partnership suitable for two or more partners who are:
- Young entrepreneur having limited fund
- Startup business owner
- Temporary business (e.g. joint venture)
- Low risk industry business owner