What is the difference between Enterprise and Sdn Bhd?

An Enterprise (sole proprietorship or partnership) is you and the business as one legal person, cheap and simple, but you're personally liable for debts. A Sdn Bhd is a separate legal company with limited liability, so your personal assets are protected, but it costs more and has more compliance (a company secretary, annual returns, corporate tax).

How do I register a business in Malaysia online?

Register a sole proprietorship or partnership online at SSM's ezBiz portal (ezbiz.ssm.com.my); it's usually approved within a day. To incorporate a Sdn Bhd, use MyCoID (mycoid.ssm.com.my). Both are run by the Companies Commission of Malaysia (SSM).

Do I need to register for SST when I start a business?

Only once your taxable turnover exceeds RM500,000 in a 12-month period. Below that threshold, SST registration is not required.

for entrepreneurs

How to start a business in Malaysia

Q: How much does it cost to register a business in Malaysia?

A sole proprietorship/Enterprise costs from RM30 per year (RM30 if you use your own name, RM60 for a trade name) via SSM's ezBiz. A Sdn Bhd (private limited company) costs about RM1,000 to incorporate via MyCoID, plus ongoing costs like a company secretary and annual returns.

Q: Can a foreigner start a business in Malaysia?

Sole proprietorships and partnerships (Enterprise) are limited to Malaysian citizens and permanent residents. Foreigners typically incorporate a Sdn Bhd, which allows foreign ownership, and may need the relevant work or investment passes.

You register with the Companies Commission (SSM), online. The cheapest route, a sole proprietor / Enterprise, costs from RM30 a year. A proper company (Sdn Bhd) costs about RM1,000 to set up.

Updated 5 July 2026 · official source: SSM (Suruhanjaya Syarikat Malaysia)

First, pick your structure

Three common options. Most solo founders start as an Enterprise; those raising money or wanting protection go straight to a Sdn Bhd.

1. Sole proprietor / Enterprise (Perniagaan), you are the business. Cheapest and fastest, but you're personally liable for any debts. Malaysian citizens & PRs only. Register on ezBiz.

2. Partnership (Perkongsian), like an Enterprise but 2–20 owners sharing liability. Also on ezBiz.

3. Sdn Bhd (private limited company), a separate legal entity with limited liability: your personal assets are protected. More cost and compliance (a company secretary, annual returns, corporate tax). Allows foreign ownership. Register on MyCoID.

Enterprise vs Sdn Bhd, at a glance

Cost: Enterprise from RM30/year (RM60 for a trade name) · Sdn Bhd about RM1,000 to incorporate.

Liability: Enterprise = personal (unlimited) · Sdn Bhd = limited to the company.

Compliance: Enterprise = renew yearly · Sdn Bhd = company secretary within 30 days, annual returns, audited accounts.

Tax: Enterprise = taxed as your personal income · Sdn Bhd = corporate tax.

Best for: Enterprise = solo/side income · Sdn Bhd = scaling, partners, investors, protection.

Step by step

1. Choose a name and check it's available.

2. Register online. Sole prop / partnership → ezBiz. Sdn Bhd → MyCoID.

3. Pay the fee and submit. An Enterprise is often approved the same day; a Sdn Bhd in 1–3 days.

4. After approval: open a business bank account. A Sdn Bhd appoints a company secretary within 30 days.

5. Tax & SST: register with LHDN for income tax; register for SST only once turnover passes RM500,000/year.

The one number that trips people up

You do not need to register for SST just because you started a business. It only kicks in once your taxable turnover exceeds RM500,000 in a 12-month period. Below that, skip it. See our SST explainer for the rates.

Common questions

How much does it cost to register a business in Malaysia?

A sole proprietor/Enterprise is from RM30/year (RM60 for a trade name) via ezBiz. A Sdn Bhd is about RM1,000 to incorporate via MyCoID, plus a company secretary and annual returns.

What's the difference between Enterprise and Sdn Bhd?

An Enterprise is you and the business as one legal person, cheap and simple, but you're personally liable. A Sdn Bhd is a separate company with limited liability that protects your personal assets, at higher cost and compliance.

How do I register online?

Sole prop/partnership on ezBiz (ezbiz.ssm.com.my); Sdn Bhd on MyCoID (mycoid.ssm.com.my). Both run by SSM.

Do I need to register for SST?

Only once taxable turnover exceeds RM500,000 in 12 months. Below that, no.

Can a foreigner start a business in Malaysia?

Enterprise/partnership is for citizens and PRs. Foreigners usually incorporate a Sdn Bhd (which allows foreign ownership) and may need the relevant passes.