Businesses (Also see How to Set Up an Excellent Business Website?) include all forms of craftmanship, commerce, trade, profession and other activities that are carried out with earn profit as the main objective. However, this term does not include any employment, office, occupation, or charitable undertaking that are stated in the schedule according to the stipulations of the Business Registration Act 1956. Businesses that can be registered under the Business Registration Act 1956 are those that operate in West Malaysia, and this takes those in Peninsular Malaysia and Federal Territories into account. The forms of business are sole proprietorship and partnership, where the former is a business which is entirely owned by an owner. At the same time, the latter is a business that its number of partners will be between 2 and 20 persons.
After understanding the concept of business, let us look at the procedures of registering the business. The procedures can be quite complicated if you are not familiar with them. If that is the case, you may consider hiring a corporate secretarial firm Johor Bahru.
If you are using the name of a person as stated the identity card as the name of your business, you do not need to apply for the business name. If you are using a trading name, which is the name of the business you proposed, you need to get approval from the Registrar of Business.
The next step is to complete Form A (the Business Registration Form) by filling in the business name, date of commencement of the business, its principal place, the type of business, the address of its branches if there is any, the information of partners and the owner, and a copy of partnership agreement if there is any. Once completed, all the partners and owners of the business should sign the form. All of them need to be at the counter when registering the business.
In the registration process, the documents that you need to attach include licenses, permits or supporting letters for specific types of business (Also see Ways to Alleviate Business Tax Risks). For example, if you want to open a nursery, you may need the documents from the Department of Social Welfare. If you want to operate a tuition centre, kindergarten, schools or colleges, you may need to attach the documents from the Ministry of Education. Also, you may need to submit supporting letters or approvals from related agencies if the Registrar of Business asks for them.
The owner or the partners of a business must be citizens of Malaysia, or they should get the permanent resident status in Malaysia. They should be at least 18 years old, and only they can submit applications to the relevant departments.
For issues regarding the registration fee, business owners will only need to pay RM30.00 if they set up sole proprietorships by using a personal name on the identity card. For Sole proprietorships or partnerships that use a trading name, the registration fee will be RM60.00. If they are registering for branches, they will need to pay RM5.00 per branch they apply.