How to Register a Company in Malaysia (2026 Guide)
Malaysia has four business structures to register with SSM: Sole Proprietorship, Partnership, LLP (PLT), and Sdn Bhd — each with different fees, liability protection, and ongoing compliance. Full comparison and registration steps below.
Every legal business in Malaysia must be registered with the Companies Commission of Malaysia (SSM) — operating unregistered is an offence, and you also can't open a business bank account, sign most commercial contracts, or take payments from marketplaces without a registration number. You have four structures to choose from: Sole Proprietorship (from RM30/year), Partnership (from RM60/year), Limited Liability Partnership / LLP (PLT) (RM500 one-off registration), and Private Limited Company / Sdn Bhd (RM1,000 one-off incorporation). The right one depends on how much personal liability protection you need and how much ongoing compliance you're willing to take on.
Comparing your options
| Sole Proprietorship | Partnership | LLP (PLT) | Sdn Bhd | |
|---|---|---|---|---|
| Owners | 1 | 2–20 | 2+ (no cap) | 1+ |
| Personal liability | Unlimited — your personal assets are on the line | Unlimited, and joint with your partners | Limited to what you put in | Limited to what you put in |
| SSM fee | RM30/year (personal name) or RM60/year (trade name) | Same as sole prop | RM500 one-off + RM50 name reservation | RM1,000 one-off |
| Registration portal | ezBiz | ezBiz | MyLLP (via SSM4U) | MyCoID |
| Company secretary needed? | No | No | No — needs a Compliance Officer instead | Yes, licensed, within 30 days |
| Annual filing | Renew registration (choose 1–5 years) | Renew registration (choose 1–5 years) | Annual Declaration by Compliance Officer | Annual Return + (usually) audited accounts |
| Best for | Freelancers, very early-stage, low-risk trades | Small businesses with co-founders who trust each other completely | Professional services, JVs wanting liability protection without Sdn Bhd's overhead | Anyone raising capital, bidding for tenders, or wanting bank/client credibility |
A quick way to think about it: Sole Proprietorship and Partnership are cheap and fast but leave your personal assets exposed if the business runs into debt or gets sued. LLP and Sdn Bhd both give you limited liability — the difference is mainly compliance overhead. An LLP needs a Compliance Officer (who can be one of the partners themselves) and files a simpler annual declaration; a Sdn Bhd needs an external licensed company secretary and generally faces stricter annual filing and audit requirements. If you're weighing Sdn Bhd specifically, our dedicated Sdn Bhd incorporation guide covers that process step by step.
How to register a Sole Proprietorship or Partnership
This is the fastest and cheapest path, done entirely through SSM's ezBiz portal:
- Create an ezBiz account using your MyKad/IC.
- Choose "New Business Registration" and select Sole Proprietorship or Partnership.
- Pick your business name — either your own personal name (cheaper, RM30/year) or a trade name (RM60/year). A trade name needs to clear a name-availability check first.
- Enter your business activity code and address, then pay the registration fee online.
- Download your Business Registration Certificate (Form D) — issued instantly on approval, no waiting period.
You can register for a period of 1 to 5 years at a time (fee scales accordingly) — pay once for a longer stretch if you'd rather not renew annually.
How to register an LLP (PLT)
- Reserve your LLP name via the MyLLP portal (accessed through your SSM4U account) — you can submit up to 3 name choices at RM50 each; approval holds the name for 30 days.
- Appoint your Compliance Officer — must be a Malaysian citizen or permanent resident, 18+, ordinarily residing in Malaysia, and either one of the partners or a person qualified to act as a company secretary.
- Submit your LLP registration with partner details, registered office and business address, and your 5-digit MSIC business activity code.
- Pay the RM500 registration fee. Processing is typically 1–3 working days.
- Receive your Certificate of Registration.
How to register a Sdn Bhd
Covered in full, step by step, in our Sdn Bhd incorporation guide — in short: reserve a name via MyCoID, appoint a licensed company secretary, submit the incorporation "Super Form," and pay RM1,000. Budget 1–3 working days for processing once your documents are complete.
After you register: what every structure needs next
Regardless of which structure you choose, a few things apply universally right after registration:
- Open a business bank account in the registered business name — don't keep mixing business and personal transactions in your personal account once you're registered.
- Register a tax file with LHDN. Sole proprietors and partners declare business income through their personal tax filing (Form B); Sdn Bhd and LLP entities get their own separate tax reference.
- Check your SST obligation once your turnover approaches RM500,000 (RM1.5 million for F&B) — see our accounting basics and SST guide.
- Know your ongoing compliance calendar for your chosen structure — our business compliance requirements guide lays out exactly what's due, when, and to which agency.
- Get your local council business premise license, if you operate from physical premises — this applies to every structure equally and is separate from SSM registration.
Our free SSM registration checklist walks through the documents needed for each structure so nothing gets missed.
Frequently asked questions
Which structure is cheapest to start?
Sole Proprietorship, at RM30/year for a personal-name registration — but "cheapest to start" and "cheapest overall" aren't the same thing once you weigh in the unlimited personal liability.
Can I switch from Sole Proprietorship to Sdn Bhd later?
Yes, and it's a common path. You incorporate a new Sdn Bhd and transfer your existing contracts, assets, and any employees across — it's a fresh incorporation plus a business transfer, not an automatic conversion of your existing registration.
Do I need a physical shop or office to register?
No — your registered address just needs to be a valid Malaysian address where official correspondence can reach you (this can be your home address for a sole proprietorship). Separately, if you plan to operate from physical premises, your local council will require its own premise license regardless of your SSM structure.
What's the real difference between a Partnership and an LLP?
A regular Partnership has unlimited liability shared among all partners — if the business owes money or gets sued, partners' personal assets are exposed. An LLP is a separate legal entity: partners' liability is generally limited to what they've invested, at the cost of a formal registration fee and a Compliance Officer requirement that a plain Partnership doesn't have.
How long does registration take?
Sole Proprietorship/Partnership certificates via ezBiz are issued instantly on approval. LLP and Sdn Bhd registrations typically take 1–3 working days once a complete application is submitted.
Sources: SSM Table of Fees (Registration of Business); SSM MyLLP/SSM4U registration guidance; SSM Guidelines for the Incorporation of a Local Company; Limited Liability Partnerships Act 2012; Companies Act 2016. Fees confirmed against SSM's published guidance as of July 2026 — always check ssm.com.my for the current fee schedule before relying on figures here.
Estimate it in under a minute with our free calculator.