Business
Malaysia — Business: Sole Proprietorship
Only a Malaysian citizen or permanent resident aged 18 or over can register a sole proprietorship, and only the owner can apply. Registration costs RM30 for a business in the owner's personal name and RM60 for a trade name, with a trade name needing prior SSM approval; each branch adds RM5. Registration must be made within 30 days of the business starting, using Form A, and can be done online at ezbiz.ssm.com.my. Operating without registration is an offence under the Registration of Businesses Act 1956, with a fine of up to RM50,000, up to two years' imprisonment, or both. Owners must still get any licences or permits from other authorities.
VerifiedGovernment / official sourceCompanies Commission of Malaysia (SSM) — registration of businessLast reviewed: 2026-10-23
Key facts
- Only a Malaysian citizen or permanent resident aged 18 or over can register a sole proprietorship; only the owner can apply.
- Fees: RM30 for a personal name and RM60 for a trade name (prior SSM approval needed); RM5 per branch.
- Registration must be made within 30 days of starting the business, on Form A, online or in person.
- Operating unregistered is an offence: fine up to RM50,000, up to two years' imprisonment, or both.
Steps
- Prepare documents — IC, business name/activity details, Form A, Form PNA.42 if using a trade name.
- Register with SSM — Completes within 1 hour; business can begin operating immediately.
- Renew annually — RM30/RM60 fee; non-renewal risks closure and penalties.
- File annual Form B — Sole proprietorship income taxed at personal rates via LHDN.
Costs
- Registration, personal name: RM30
- Registration, trade name: RM60
Timelines
- Register after starting business: Within 30 days
Common mistakes
- Assuming SSM registration replaces other licences — the owner must still obtain permits from other authorities.