Sole Proprietorship and Partnership
Updated: Jun 27, 2022
Starting a Sole Proprietorship / Partnership
REGISTRATION OF NEW BUSINESS
Business includes every form of trade, commerce, craftsmanship, calling, profession or other activity carried on for the purpose of gain, but does not include any office or employment or any charitable undertaking or any occupation specified in the Schedule of the Registration of Businesses Act 1956 (ROBA 1956) & ROBA Rules 1957.
Business that may be registered under the ROBA 1956 is a business operating in West Malaysia which includes Peninsular Malaysia and the Federal Territory.
The business must operate in Peninsular Malaysia and the Federal Territory of Labuan.
Two (2) types of businesses
The types of business are as follows:
1. Sole proprietorship - a business wholly owned by a single individual using personal name as per his / her identity card or trade name.
2. Partnership - a business owned by two or more persons but not exceeding 20 persons. Identity card name can’t be used as business name.
BUSINESS REGISTRATION PROCEDURE
A business may be registered using personal name or using a trade name.
i. Personal Name – (Type of business: Sole Proprietorship)
Business name as per MyKad (Eg.: Ali Bin Ahmad)
ii. Trade Name – (Type of business: Sole Proprietorship or Partnership up to maximum 20 partners)
Business name created/designed for commercial purposes (Eg.: Indah Maju Construction, Restoran Seri Nelayan, Nirmala Trading & Services).
2. The business name using personal name as stated in the identity card is not required to apply for business name.
(a) Example: Ruslan bin Mohamed, Siow Ah Thai or, Ramasamy a/l Mutusamy
(b) Trade Name is the name of the proposed business and must obtain prior approval from the Registrar of Business.
Example: Kedai Dobi Mewah, Lucky Star Catering or, ABS Unggul Enterprise.
(c) Complete the Business Registration Form (Form A) with the following information:
(i) Business name
(ii) Commencement date of business
(iii) Principal place of business
(iv) The address of the branch of business (if any)
(v) Information of owner and partners
(vi) Type of business carried out
(vii) Provide a copy of the Partnership Agreement (if any)
(d) Every business owner and partners must sign the completed Form.
(e) Owner or all partners may submit the application to counter or through online via SSM Ezbiz Online services in the SSM’s website at ezbiz.ssm.com.my.
(f) Documents to be attached are as follows:
(i) Permit, licence or supporting letter for the type of business e.g. Nurseries (Department of Social Welfare), Kindergarten, Tuition Centres, Schools/College (Ministry/ Department of Education); and
(ii) Approval or Supporting Letter from relevant agency if required by the Registrar of Business.
REQUIREMENT TO REGISTER A BUSINESS
1. The business owner or partners must be a Malaysian Citizen or Permanent Resident of Malaysia.
2. The business owner or partners must be eighteen (18) years old and above.
3. Only owner or partners is allowed to submit an application.
1. Sole proprietorship using a personal name as stated in the identity card – RM30.00
2. Sole proprietorship or partnership using trade name - RM60.00
3. Registration of branches – RM5.00 for each branch 4. Business Information – RM10.00
Business Registration Certificate can be obtained within one hour from the payment transaction is made.
A new business registration may valid for a period of one (1) year and does not exceed five (5) years on each registration.
Responsibilities of Business Owners and Business Partners
Displaying Business Registration Certificate in a conspicuous place at the main business premises or branch.
Put a signboard displaying business name outside the business premises, and if there is more than one place of business, outside of each place of business
Display business name and registration certificate number on letterhead, invoice, bill and other business documents.
Even though businesses have been registered with SSM, business owners are responsible to obtain the appropriate licenses, permits or approval letters from other relevant authorities of the type of business requiring prior approval in order to operate their businesses.
BUSINESS NAME REGISTRATION
The name of a business is the title that is used as an identification or introduction of the business.
The name of a business can be categorized into two:
(a) Personal name: Uses the name in the identity card. This category does not need to be reviewed for approval. Example Ruslan Bin Mohamad, Lee Yng Fei and Sharmila A/P Avaniappan.
(b) Trade Name: The proposed business name needs prior approval of the Registrar of Business, Companies Commission of Malaysia (SSM). Example Kedai Dobi Mewah, Lucky Star Catering and ABS Unggul Enterprise.
NAME APPLICATION PROCEDURE
Business Name Application Process
(a) Application for name search must be made using the PNA42 form. The application form must be completed.
(b) If the requested name contains a word which requires the approval of the Minister, the applicant must complete the information and attach supporting documents for approval.
CONSIDERATION OF BUSINESS NAME APPLICATION
THE PRINCIPLES OF NAMING A BUSINESS
The usage of correct language and spelling
(a) The name has to use the correct language and spelling. Using both Bahasa Malaysia and English in a name is permissible if the use is to illustrate the type of business, and it must use correct language.
Padu Construction not Construction
Padu Kedai Dobi Power not Power Kedai Dobi
(b) If the name contains a word that is not from Bahasa Malaysia or English or is fictitious, the meaning or origin of the word must be given.
A name that is not too general
The requested name must have an identity name and should not be very common. Names are considered general when using common words or only portraying activity;
Does not resemble a business name that has been registered or in safekeeping
A business name is said to be identical/similar if it is only distinguished by the following words or symbols:
(a) The symbol “&” or the letter “N”, or the word “and”;
Light & Easy Trading = Light N Easy Trading
Light and Easy Trading = Light Easy Trading
(b) The usage of the symbol “.” (full stop) or ”-“ (dash);
A-B-C Trading = A.B.C. Trading
ABC Resources = A.B.C. Resources
(c) Contains words that carry the same meaning;
Forwarding = Forwarders
(d) Differences in plural and singular words;
ABC Services = ABC Service
ABC Technology = ABC Technologies
ABC Publish = ABC Publishing
(e) The word “New”
Golden Dynamic Trading = New Golden Dynamic Trading
(f) The name of a business will be deemed to be different and not identical if there is a difference in letters or texts;
Blue Star Trading not the same as Star Blue Trading
CM World Trading not the same as CMT World Trading
MCY Tech not the same as MYC Tech
(g) Combined common words combined are considered common words and not the same if the whole name is not the same.
Setiabudi Maju Services not the same as Setiabudi Jaya Services
A name is considered confusing in terms of identity and object if the requested name is not in line with the type of business;
Maju Restaurant (Store selling clothes)
Karate Academy (Store selling food)
(a) Words that touch or represent religious or religious elements are not allowed
Alkarim, Alqudus , Almuhaimin Lord Sri Shiva Resources
Mekah Great God Enterprise
(b) The use of names (self/people) is allowed in the following circumstances;
(i) When using the names of renowned figures, consent should be sought from of that particular individual or his/her heirs;
(ii) Names associated with local and foreign historical figures such as Ibnu Sina, Cheng Ho, Marco Polo, Raffles, Parameswara, Hang Tuah and the like;
(iii) Names that refer to the owner, must refer to the proper individual;
(iv) Only the usage of the owner’s full name is allowed in case the name contains special titles such as Prince/Princess/King;
Raja Gopal a/l Muthusamy Enterprise not Raja Enterprise
(c) The name that contains works that can be confused as an identity under the law or NGO/NPO such as “Company”, “Co.” “Corporation”, “Body”, “Foundation”’ and “Club” is not permitted to be used as business name;
(d) The company name should not contain the names of statutory bodies, government companies or agencies, including;
(i) Abbreviations of institutions of higher learning
UiTM, UTM, UM, UKM, UPM, UUM, USM, UIA, UNIMAS, UMS, UIAM, UPSI, UMT, UMP, UTEM, UNIMAP and others
(ii) Abbreviations of the Federal or State government agencies and Government-linked Companies (GLCs);
SSM, CCM, JKR, JPA, JPM, BNM, KPDNKK, SEDC, PKEN, SIRIM, TNB, PNB, FELDA, FELCRA, PETRONAS, SKM, MYCC, MIDA, KWSP, LHDN, PERKESO, MARDI, RISDA and others
(e) The usage of controlled and restricted words because of national or public interest is not allowed:
(i) Words from government slogans such as "1 Malaysia", "Vision 2020", "Malaysia Boleh" and other words that will be introduced from time to time
(ii) An abbreviated name that can be confused with other names common multi-national companies’ names such as PNB, ICI, Kulim HiTech "Cyber" MSC / Multimedia Super Corridor" or "Koridor Raya Multimedia" and others.
(f) Names that are related to activities controlled by employment agencies or by a profession, are not allowed:
Architect, Engineer, Doctor, Pharmacists and others
(g) Using the symbol “&” or the letter “N” to replace the word “and”;
(i) The symbol full stop “.”;
(ii) The symbol “-“(hyphen). Only allowed for words like;
Words containing plural elements need not be used with hyphens as the plural name is already understood
Kedai Barang Logam Jati
Pusat Alat Sukan Kencana,
(iii) The symbol“( )” brackets.
The usage of brackets is permitted under appropriate conditions and purposes;
ZY Advertising (2014)
ZY Advertising (Bangsar)
(iv) The symbol “ ’ ” ( “apostrophe”) is allowed for appropriate use:
Dato’ Afiq Success Construction
Sa’diah Binti Muhammad Enterprise
(h) The use of numbers is allowed for appropriate use;
123 Maju Enterprise
Maju Hijau 1 Enterprise
(i) The use of letters/alphabets is allowed for appropriate use;
(j) The word "Malaysia" or the name of a state at the beginning of the name shall not be permitted unless it is in the interest of the Federal / State Government or if it obtained consent from the party concerned;
Malaysia Handicraft Center
However words like that can be used in names like:
Atiqah Kain Songket Terengganu
(k) When using a combination of names / words containing gazetted words, it shall be approved by the Minister;
(l) The use of names of places shall be followed by the business description
Teluk Intan Marketing
Ipoh Sweet & Candy Store
(m) The reuse of business name that has been expired / terminated:
(i) Allowed after 12 months from the date of termination or expiry of the business
(ii) Allowed if the business has been terminated using Form C.
Except with the consent of the Minister, no business shall registered by a name which,
(a) Contains any word suggesting connection with the Yang di Pertuan Agong, the Raja Permaisuri Agong or the Ruler of a state or a member of the Royal Family or Royal patronage, including such words as “Royal” or any equivalent expression;
(b) Contains any word suggesting connection with the Federal or a State government department, statutory body, authority or agency or any municipality or other local authority, including such words as “Federal”, “State” or “National”;
(c) Contains any word suggesting connection with any Asean, Commonwealth or other foreign government or with any other international organisation;
(d) Contains the word “Chartered” or any words suggesting connection with any Society or body incorporated by “Royal Charter”;
(e) Contains the word “Association” “Union”, “Foundation”, “Trust”, “Forces”, “Co-operative”, “International” or any equivalent expression;
The Registrar of Companies may not accept for registration any name of a company or a foreign company that is a name or a name of kind mentioned in the Schedule unless prior approval of the Minister has been obtained.
(a) Names suggesting connection with a member of the Royal Family or Royal patronage including names containing such words as “Royal”, “King”, “Queen”, “Prince”, “Princess”, “Crown”, “Regent”, “Imperial”;
(b) Names suggesting connection with a State or Federal government department, statutory body, authority or government agency or any municipality or other local authority including names containing such words as “Federal”, “State”, “National”;
(c) Names suggesting connection with any Asean, Commonwealth or foreign government or with the United Nation or with any other international organisation or cartel including names containing such words as “ASEAN”, “UNESCO”, “NATO”, “EEC”, “OPEC”; or
(d) Names including the following words or any words of like import: “Bank”, “Banker”, “Banking”, “Bumiputra”, “Bureau”, “Chamber of Commerce and Industry”, “Chamber of Manufacturers”, “Chartered”, “College”, “Consumer”, “Council”, “Credit”, “Exchange”, “Executor”, “Fair Price”, “Finance”, “Foundation”, “Fund”, “Guarantee”, “Institute”, “Insurance”, “Investment”, “International”, “Leasing”, “Made in Malaysia”, “Prime”, “Registry”, “Treasury”, “Trust”, “Unit Trust”, “University”.
If you would like to know more, please contact Bestar.