Who can register a sole proprietorship

The situation

Registration of a sole proprietorship or partnership under the Registration of Businesses Act 1956 is generally limited to Malaysian citizens and permanent residents.

The law

• Sec 5, Registration of Businesses Act 1956: Business must be registered with SSM before or within 30 days of starting

What it means for you

A foreigner who wants to trade in Malaysia normally sets up a Sdn Bhd or LLP. Working on the side while holding an employment pass may also breach pass conditions. Check your pass conditions before you start any business.

What to do

1. Confirm your pass allows business activity.
2. Choose a Sdn Bhd or LLP instead of ROB.
3. Plan a resident director if a Sdn Bhd.
4. Speak to a licensed secretary.

Related

• Which tax form for a sole proprietor
• Renewing an expired business registration
• Trade name or own name registration
• Does an SSM enterprise need e-invoicing
• Partnership with a friend under ROB
• Deadline to register a new business