The diversity of the economy is reflected in the businesses present in the market. Knowing the type of business is definitely very far from the minds of customers. However, this is contrary to the business owners, because for them knowing the type of business is a basic knowledge that will determine the organizational structure and the corresponding operations of businesses. Accordingly, knowing these is just the first of so many other steps needed to run a business. Another crucial step is the registration of the business with Malaysia’s main governing body for businesses operating in all of its territories, the SSM, officially named Suruhanjaya Syarikat Malaysia.
As the main government agency for corporate governance, SSM is in charge of keeping databases for existing companies, the registration and incorporation of new companies and the compliance of new and old companies. In this regard, registration with SSM, and theoretically at the onset of starting a business, requires knowing the type of business where the company will be classified. There are three basic choices of business type, they are Sole Proprietorship, Partnerships and Limited Liability Partnerships. In this piece, the focus will be the Partnership companies.
To begin, Partnerships, as the name suggests, are businesses with two or more owners. Like companies Sole Proprietorship companies, Partnerships are classified as unlimited companies. Technically speaking, unlimited companies basically means that the legal identity of the business extends to the owners. This is important to remember because, with the same legal identity, the liabilities incurred by the company will be extended to the owners, making it their personal liability. The silver lining in this is that in contrast to Sole Proprietorship companies wherein the liabilities are all on the individual owner’s account, in Partnership, this liability is spread to all the owners.
Once the type of business is established, companies are required to be registered to the SSM to legitimize and make official its existence and operation. In this regard, the company is given two options when registering with SSM, one is to register offline, the other is online. With both methods, an important requirement is for the Partnership company to come up with three companies and/or trade names. To distinguish, on one hand, the company name will be the legal name of the business, in simple terms, it is the official corporate name of the company. On the other hand, the trade name is the name mainly used for the advertisement or marketing of the company. In view of this, coming up with trade names is optional, but the company names are a mandatory requirement.
It is important to remember to think of names that are associated with the industry and at the same time unforgettable and appealing to the target market. With this done, it is time to decide if the registration will be done offline or online. With the same documentary requirements, the main difference is that for the offline application, all owners or partners are required to sign and appear before the main SSM office upon registration, while the SSM online registration can be done anywhere as long as the SSM electronic registration platform is accessible.
On the whole, starting a Partnership is not rocket science. However, this is just the beginning of a new and unknown territory. Thus, for this venture, or for any other ventures, it is best to be geared with knowledge and perseverance to endure everything that is to come.