What is Partnership?
Partnership registration is the common and legal business structure option in Malaysia. Partnership is governed by Companies Commission of Malaysia (Suruhanjaya Syarikat Malaysia) and Registration of Businesses Act 1956.
A Partnership is a business owned by two or more persons but not exceeding 20 persons. Identity card name can’t be used as business name. To register a Partnership, the business owner must be Malaysian citizen or permanent resident. Foreigner and corporate legal entity are not allowed to register Partnership in Malaysia.
Unique features of a Partnership like fast and easy registration, no corporate tax payments, less formal business requirements, winding up easily and lowest annual maintenance (Compare to other business vehicle such as Private Limited Company (Sdn. Bhd.) or Limited Liability Partnership).
It is suitable for 2 or above newly start-up business partners to try their new business strategy or explore into new market. Business owners may subsequently transform their business into Private Limited Company (Sdn. Bhd.) if they feel their businesses are stable/ aim to do bigger business. Partnership will transform to Sole Proprietor if there is only one partner remain in the business.
Procedures for Partnership Registration
All business owners must visit Companies Commission of Malaysia (SSM) personally to register their Partnership. Secretarial firms are not able to register Sole Proprietor / Partnership on behalf of business owners/partners.
Business owners shall personally visit Companies Commission of Malaysia (SSM) too if they wish to change their business details / renew or close their Sole Proprietorship and Partnership (It can be done by any one of the partners). As such, we are not able to help you register your Sole Proprietor or Partnership on behalf in Malaysia.
The following are the procedures to register Partnership in Malaysia:
Advantages of Partnership
Factors to Consider in Partnership Name Selection
The name of your company is very important. It is the first impression to your buyers, suppliers and stakeholders. It should, therefore, be relevant, suggestive and attractive. There are various factors that you should keep in mind while naming for your company
Short & Simple
The name should be concise and not be too long. People should be able to pronounce it easily and they should be able to remember your company’s name the first time they hear or read it.
The name of your company should be related to your business. It should fit the company’s branding and corporate identity.
Name of your company should not be same or identical to an existing company or trademark. You can go to www.ssm-einfo.my to check if your company name is identical to others. You should ideally avoid plural or changing just letter Case, spacing or punctuation marks in an existing company name.
Should not be illegal / offensive
The name of your company should not be against law. It should not be abusive or against the customs and beliefs of any religion.