Set Up a Sole Proprietorship in Malaysia

Updated on Wednesday 30th August 2017

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The simplest way of doing business in Malaysia is through a sole proprietorship, which is a business form addressed to natural persons who want to carry out business activities. Foreigners who want to establish a sole proprietorship in Malaysia should fulfil several requirements and our team of company formation representatives in Malaysia can provide an in-depth presentation on this matter. 

Register a sole proprietorship in Malaysia 

A sole proprietorship must be registered with the Companies Commission Malaysia, the main institution where companies file for registration. A sole trader is represented by the natural person, who will carry business operations in his or her own name. 

An important aspect referring to the incorporation of a sole proprietorship here is that foreign persons are not allowed to incorporate this kind of business form, unless they have received a residence permit, issued for permanent residents. 

The video below offers further information on the sole trader in Malaysia:

In order to incorporate a company in Malaysia, the investor will have to submit at the SSM the following: 

•    the proposed company name;
•    the business activity of the future company;
•    copy of the identity card of the owner.

Our team of company incorporation specialists in Malaysia can offer assistance on the main industries in which sole proprietorships are established here.

Advantages of a Malaysian sole trader 

Natural persons registered as a sole trader have to comply with a basic and very simple bureaucratic system. Sole traders are easy to register and they can also employ persons, as any other type of company. Those who open a sole proprietorship have a great advantage in terms of decision making, as they are the owner of their company

However, it is important to know that sole proprietorships present a form of risks in terms of liability, as the owner is fully liable for the company’s debts because there is no legal distinction between the company and its owner. 

Persons who need further information on the sole proprietorship or want to open another type of company in Malaysia can address to our team of company incorporation agents for assistance. 



June 3, 2016

I believe this is a great way of doing business, for those who have a business idea which can be carried out by only one person.

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