If you are first starting a business in Malaysia, you must be confused about what type of business SSM you need to implement in your business. In this article you will know what company type available in Malaysia and how to register.

What Is Company Type?

Company type is the type of various forms and ownership of a company. In the beginning of a business, you must decide what company type to establish. You will undergo business registration with the Companies Commission of Malaysia abbreviated SSM (Suruhanjaya Syarikat Malaysia). The example type of business in Malaysia such as Sole Proprietorship, and partnership.

How Many Types Of Business Are There In Malaysia?

If you do dropshipping in Shopee, what type of business does it belong to? Generally, there are 5 main type of business in Malaysia. The following are all of the nature of business list Malaysia.

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Sole Proprietorship

A Sole Proprietorship is the simplest business entity to get started with if you are running your business alone at a small scale. You can register a Sole Proprietorship using your personal name at only RM30 or a trade name at RM60. 

The process of Sole Proprietorship registration has to be done on your own without going through a third party. As you are the only business owner, you bear all liabilities towards the business in your personal capacity and pay taxes through your personal income tax.


The next SSM nature of business list is Partnership. A Partnership is a business entity that consists of at least 2 partners, with a limit of 20 partners. Similar to a sole proprietorship, partners of the partnership share the liabilities towards the business and pay taxes through personal income taxes. 

If your Partnership is sued by a customer, you and your partner(s) will be personally liable to any damages awarded by the court. This is a common business entity for professionals such as lawyers, accountants, company secretaries, doctors, etc.

Limited Liability Partnership (LLP)

Unlike other business entities, a LLP is governed under the Limited Liability Partnerships Act 2012 which was newly introduced in Malaysia in 2012. It is a combination of a Sdn Bhd company and a Partnership with some differences such as there must be at least 2 partners, with no maximum number of partners you can have in the business. Because LLP is still relatively new, it is not commonly registered in Malaysia.

Private Limited Company (Sdn. Bhd.)

Sdn. Bhd. is one of the type of business code SSM. A Sdn Bhd company is a private company limited by shares. It is a separate legal entity which is capable of earning incomes, owning properties, signing contracts, suing another entity, and getting sued on its own name, separating your liabilities from the company itself. 

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Since the updates of the Companies Act 2016 came into effect, you can incorporate a Sdn Bhd as the only director and shareholder of the company without other business partners.

Read Also: PrestoMall Malaysia: All You Must Know and How to Sell

Public Limited Company (Berhad)

Similar to a Sdn Bhd company, a Bhd company is a company limited by shares with a few differences. These business entities in Malaysia can offer shares to the public without a limit on the number of shareholders, requires at least 2 directors and is governed by Bursa Malaysia Securities Berhad and the Security Commission of Malaysia. 

The registration of this business entity can be time-consuming and expensive due to strict compliance requirements. However, funding for the company would be easier to obtain since it is publicly listed on the market.

How to Register Your Enterprise to SSM Malaysia?

How to apply SSM to your business? The following are steps about how to do business registration in Malaysia.

Register Business Name

The first thing to do on how to register SSM is register your business name. The name of a business is the title that is used as an identification or introduction of the business. Business may be registered using a personal name or using a trade name. Please note that the business name using a personal name as stated in the identity card is not required to apply for a business name.

You can also use Trade Name. Trade Name is the name of the proposed business and must obtain prior approval from the Registrar of Business. Application for name search must be made using the PNA42 form. The application form must be completed. Remember to obey the principles of naming a business, like using the correct language and spelling, and not use a too general name.

Complete the Business Registration Form (Form A)

Complete the Business Registration Form (Form A) with the following business info SSM:

  • Business name
  • Commencement date of business
  • Principal place of business
  • The address of the branch of business (if any)
  • Information of owner and partners
  • Type of business carried out
  • Provide a copy of the Partnership Agreement (if any)

Remember that every business owner and partners must sign the completed Form.

Submit the Application

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Owners 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. Prepared all of the required documents. Documents to be attached are as follows:

  • 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
  • Approval or Supporting Letter from relevant agency if required by the Registrar of Business.

To change the SSM nature of business list, you need to change the business purpose and amend bylaws.

Read Also: How To Print SSM Certificate: The Most Thing To Know


In the beginning of a business, you must decide what company type to establish. You will undergo business registration with the Companies Commission of Malaysia abbreviated SSM (Suruhanjaya Syarikat Malaysia).

The 5 main types of business SSM in Malaysia are Sole proprietorship, Partnership, Limited Liability Partnership (LLP), Private Limited Company (Sdn. Bhd.), and Public Limited Company (Berhad).

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