How to Register a Business Name in Malaysia: A Step-by-Step Guide
Registering a business name in Malaysia is a crucial step for entrepreneurs looking to formalize their business operations. This process is governed by the Companies Commission of Malaysia (SSM), and it ensures that your business is legally recognized. This article provides an optimized guide based on the official Guidelines on Company Names under the Companies Act 2016 and compliant with local regulations.
- Why Register a Business Name in Malaysia?
Registering a business name ensures that your chosen name is unique, legally protected, and compliant with Malaysian regulations. A registered business name also provides credibility and helps you secure a legal foundation for conducting business operations across the country.
- General Requirements for Business Name Registration
According to the guidelines from the Companies Commission of Malaysia (SSM), there are key requirements you must meet when registering your business name:
- Name Availability: Your proposed business name must not be identical or misleadingly similar to an existing entity’s name in Malaysia. It should also not contain elements that are undesirable, offensive, or contrary to public policy​.
- Correct Spelling and Grammar: Ensure that your business name is grammatically correct. You can use Malay, English, or a combination of both languages as long as the name follows proper grammar rules​.
- Not Blasphemous or Offensive: Names should avoid religious connotations and must not be blasphemous or offensive to any segment of the public​.
- Key Steps to Register a Business Name in Malaysia
Step 1: Check Name Availability
Before registering, you must confirm that your desired business name is available. This can be done via the SSM online portal (MyCoID). During this step, ensure that the proposed name complies with section 26 of the Companies Act 2016, which regulates availability and acceptability of names​.
Step 2: Submit the Application
Once you have confirmed that the name is available, you can submit the registration application through MyCoID. The application must include:
- The proposed business name
- Description of business activities
- Personal information of the business owner(s)
Step 3: Payment of Fees
Upon submission, a prescribed fee is required. Once the payment is made, your business name will be reserved for 30 days from the date of submission​. If you require more time, an extension may be requested from the Registrar.
- Restrictions on Business Name Usage
While choosing a business name, be aware of certain restrictions outlined by the SSM:
- Prohibited Words: Words related to royalty (e.g., “King,” “Queen”), government agencies (e.g., “Federal,” “National”), and religious terms are restricted without proper authorization​​.
- Usage of “Malaysia” and State Names: The word “Malaysia” or any Malaysian state names cannot be used at the beginning of the name unless the business has federal or state government involvement. Additionally, the words “Company,” “Corp,” and similar terms are restricted without approval​.
- Acronyms and Historical Names: Acronyms that resemble names of universities, government bodies, or prominent figures should not be used unless sufficient proof of relevance or permission is provided​.
- Appealing a Rejected Name
If your proposed business name is rejected, you have the right to appeal the decision. The appeal must be submitted within 30 days to the Minister of Domestic Trade and Consumer Affairs, along with a fee of RM300​. Your appeal should clearly state the reasons for selecting the name and provide supporting documentation if needed.
- Tips for Choosing a Business Name
- Use Simple, Clear Names: Avoid names that are overly complicated or vague. Instead, opt for names that clearly define your business.
- Use Allowed Symbols: The use of symbols in business names is limited to five: &, ., -, (), and ‘ (apostrophe). These symbols must be used in a way that makes sense within the name​.
- Avoid Overused Terms: General terms like “Beautiful Sdn. Bhd.” or “International Trading Sdn. Bhd.” are discouraged because they are too vague​.
- Conclusion
Registering your business name in Malaysia is a straightforward process if you follow the guidelines issued by the SSM. Ensuring that your proposed name is unique, non-offensive, and grammatically correct is essential for approval. By adhering to these rules and understanding the restrictions on name usage, you can avoid unnecessary delays and begin operating your business legally in Malaysia.
At Consistant Info, we specialize in assisting businesses through the registration process in Malaysia. If you’re unsure about how to proceed or want a hassle-free experience, you can always count on Consistant Info to help you register your company and ensure compliance with local regulations.