Here are the steps on how to start a partnership in Malaysia:
Choose your partners. You must have at least two partners, but no more than 20. All partners must be Malaysian citizens or permanent residents.
Choose a business name. Your business name must be unique and cannot be the same as any other registered business name in Malaysia. You can search for available business names on the SSM website.
Register your partnership with SSM. You can register your partnership online or at a SSM office. The registration fee is RM60.
Draft a partnership agreement. A partnership agreement is a legal document that sets out the terms of your partnership, such as the division of profits and losses, the management of the business, and the procedures for dissolving the partnership.
Open a business bank account. You will need to open a business bank account in the name of the partnership.
Obtain the necessary licenses and permits. Depending on the type of business you are starting, you may need to obtain certain licenses and permits from the government.
Here are some of the advantages of starting a partnership in Malaysia:
Shared resources and expertise. By partnering with other people, you can pool your resources and expertise to create a stronger business.
Shared risk. If the business fails, the losses will be shared among the partners.
Greater access to capital. It may be easier to obtain financing for a partnership than for a sole proprietorship.
Here are some of the disadvantages of starting a partnership in Malaysia:
Joint liability. If the business incurs debts, the partners are jointly and severally liable for those debts. This means that if one partner cannot pay their share of the debt, the other partners will be responsible for making up the difference.
Disputes between partners. If there are disputes between partners, it can be difficult to resolve them. This can lead to the dissolution of the partnership.
Difficult to transfer ownership. If you want to sell your share of the partnership, it can be difficult to find a buyer.
Overall, starting a partnership can be a good way to start a business in Malaysia. However, it is important to be aware of the risks involved before you make a decision.
Guidelines for Partnership Name Application
Here are the guidelines for partnership name application in Malaysia:
The name must be unique and cannot be the same as any other registered business name in Malaysia.
The name must be in the Malay or English languages.
The name must not be offensive or misleading.
The name must not be the same as the name of a government agency or a registered trademark.
If the name contains words other than the Malay or English languages, the meaning of such words must be given.
If the name contains a word that requires the approval of the Minister, the applicant must complete the information and attach supporting documents for approval.
You can search for available business names on the SSM website. Once you have found a name that you want to use, you can apply for it online or at a SSM office. The application fee is RM60.
Here are some tips for choosing a good partnership name:
Make sure the name is easy to remember and pronounce.
Use keywords that are relevant to your business.
Keep the name short and simple.
Avoid using generic names that could be confused with other businesses.
Guidelines for Registration of New Partnership
Here are the guidelines for registration of a new partnership in Malaysia:
Choose your partners. You must have at least two partners, but no more than 20. All partners must be Malaysian citizens or permanent residents.
Choose a business name. Your business name must be unique and cannot be the same as any other registered business name in Malaysia. You can search for available business names on the SSM website.
Register your partnership with SSM. You can register your partnership online or at a SSM office. The registration fee is RM60.
Draft a partnership agreement. A partnership agreement is a legal document that sets out the terms of your partnership, such as the division of profits and losses, the management of the business, and the procedures for dissolving the partnership.
Open a business bank account. You will need to open a business bank account in the name of the partnership.
Obtain the necessary licenses and permits. Depending on the type of business you are starting, you may need to obtain certain licenses and permits from the government.
Documents required for registration:
Partnership Registration Form (SSM 1)
Partnership Agreement
Identity Card (IC) or passport of all partners
Proof of address of all partners
Rental agreement or utility bill (if applicable)
Steps to register a new partnership:
Go to the SSM website and create an account.
Login to your account and click on the "Partnership Registration" tab.
Fill out the Partnership Registration Form (SSM 1) and upload the required documents.
Pay the registration fee of RM60.
Your partnership will be registered within 3 working days.
Here are some of the advantages of registering a new partnership in Malaysia:
Legal recognition. Registering your partnership gives it legal recognition, which can protect your business from liabilities.
Access to finance. It may be easier to obtain financing for a registered partnership than for an unregistered partnership.
Credibility. Registering your partnership can give your business more credibility with customers and suppliers.
Here are some of the disadvantages of registering a new partnership in Malaysia:
Cost. There is a registration fee for registering a new partnership.
Regulations. Registered partnerships are subject to certain regulations, such as the need to file annual returns.
Dissolution. If a registered partnership dissolves, it may be more difficult to wind up the business.
Overall, registering a new partnership in Malaysia can be a good way to protect your business and give it more credibility. However, it is important to weigh the costs and benefits before making a decision.
Responsibilities of Owners and Business Partners
The responsibilities of owners and business partners starting a partnership in Malaysia are as follows:
Contributing capital. All partners must contribute capital to the partnership. The amount of capital each partner contributes can be different.
Sharing profits and losses. The profits and losses of the partnership are shared among the partners in accordance with the partnership agreement. If there is no partnership agreement, the profits and losses are shared equally among the partners.
Managing the business. The management of the business is the responsibility of all partners. However, the partnership agreement may specify which partners have specific management responsibilities.
Acting in good faith. All partners must act in good faith in the management of the business. This means that they must act in the best interests of the partnership and not in their own self-interest.
Disclosing information. All partners must disclose all relevant information to the other partners. This includes information about the business, the partners' finances, and any potential conflicts of interest.
Resolving disputes. If there are disputes between partners, they must try to resolve them amicably. If they cannot resolve the disputes themselves, they may need to seek mediation or arbitration.
It is important to note that these are just some of the responsibilities of owners and business partners starting a partnership in Malaysia. The specific responsibilities of each partner will be determined by the partnership agreement.
Here are some additional tips for starting a partnership in Malaysia:
Choose your partners carefully. The success of your partnership will depend on the people you choose to partner with. Make sure you choose people who you trust and who have the skills and experience to contribute to the business.
Get everything in writing. A partnership agreement is essential for setting out the terms of your partnership. This includes the division of profits and losses, the management of the business, and the procedures for dissolving the partnership.
Be prepared to compromise. Running a business with partners means that you will have to compromise at times. Be prepared to give and take in order to make the partnership work.
Communicate effectively. Communication is essential for the success of any partnership. Make sure you communicate regularly with your partners about the business and any challenges or issues that arise.
How Bestar can Help in Starting a Partnership
Bestar can help you in starting a partnership in Malaysia in a few ways:
Provide advice. Bestar's consultants can help you draft a partnership agreement and advise you on the legal aspects of starting a partnership in Malaysia.
Provide accounting services. Bestar's accountants can help you set up your accounting system and ensure that you are compliant with Malaysian tax laws.
Provide business advisory services. Bestar's business advisors can help you develop your business plan, and navigate the Malaysian business environment.
In addition, Bestar offers a range of other services that can be helpful to businesses starting a partnership in Malaysia, such as:
Business registration services
Corporate secretarial services
Tax filing services
Business loan services
Export-import services
If you are interested in starting a partnership in Malaysia, Bestar can help you every step of the way. Contact Bestar today to learn more about how they can help you achieve your business goals.
Here are some of the benefits of using Bestar to start a partnership in Malaysia:
Expert advice: Bestar's team of experts has extensive experience in helping businesses start partnerships in Malaysia. They can provide you with the guidance and support you need to make sure your partnership is successful.
Compliance: Bestar is well-versed in Malaysian law and regulations. They can help you ensure that your partnership is compliant with all applicable laws and regulations.
Peace of mind: Knowing that you have Bestar's team of experts on your side can give you peace of mind as you start your partnership. They can help you navigate the challenges of starting a new business and ensure that you are on the right track to success.
Connect with Us
If you are considering starting a partnership in Malaysia, contact Bestar today. We can help you make sure that your partnership is off to a good start.
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