Sole proprietorship (registered under ROBA 1956)Malaysia
What it takes to form, own and run a sole trader in Malaysia, and how its profit is taxed. Each figure links to the page it was read from.
This company type
At a glance
Quote
Sole proprietorship: Business wholly owned by a single individual using personal name as per his / her identity card or trade name.
Quote
New Registration Trade Name – RM60 per year Personal Name -RM30 per year
Quote
Form B - Resident Individual with Business, Employment and Other Income
Form it
Who registers it
- Registry
- Formed without visiting
- Not stated
The registry’s and the law’s own pages do not mention it.
- Formed online
- Yes
What it takes to form
Not in our records A notary, A resident director, Paying up the capital: none of these is in our records for the Sole proprietorship (registered under ROBA 1956).
Own it
Who may own and run it
- Directors
- Does not apply
- Shareholders
- Does not apply
- Members
- At least 1 · at most 1 · one person may form it alone
Quote
Sole proprietorship: Business wholly owned by a single individual using personal name as per his / her identity card or trade name.
- A local company secretary
- Does not apply
- A local registered agent
- Not stated
The registry’s and the law’s own pages do not mention it.
Each year, at the registry
- Annual registry fee
- MYR 30 (about €6.54)
Quote
Business Renewal Trade Name – RM60 per year Personal Name -RM30 per year
- Accounts on the public record
- Not stated
The registry’s and the law’s own pages do not mention it.
- Audit for a small company
- Not stated
The registry’s and the law’s own pages do not mention it.
- Audit
- No audit required (SSM comparison of business entities).
Quote
No audit required.
Important dates
When each obligation falls due, as the authority states it.
- The owner's income tax return
- 30 June
With Inland Revenue Board of Malaysia (LHDN/HASiL)
Paper filing is by 30 June; the page gives 15 July for e-filing (e-B). Belongs to tax-deadlines; recorded because this type files as an individual, not as a company.
What is public
Not in our records What the register shows the public is not in our records for the Sole proprietorship (registered under ROBA 1956).
Tax
Tax on profit
How this company type is taxed, which can differ from its place’s headline rate.
Through owners+1 regime
A sole proprietor's business profit is taxed as the individual's own income: the resident individual who carries on business files Form B.
Quote
Form B - Resident Individual with Business, Employment and Other Income
Special regimes that may apply
- Labuan business activity tax — Labuan trading activity free zone · 3%
Labuan entities carrying on a Labuan business activity which is a Labuan trading activity Labuan Business Activity Tax Act 1990 (Act 445), section 4, as amended by Act A1614 and Act 833
Whether a company qualifies depends on its activity and conditions set in each statute.
- CFC rules in Malaysia
- Not in our records
Close it
Closing it
The other end, which most guides leave out.
- Route
- When a registered business has terminated, the person responsible notifies the Registrar in the prescribed form within thirty days (four months after an associate's death where no associate survives), and the Registrar revokes the registration and cancels the certificate (Registration of Businesses Act 1956 s.5D).
Quote
Where a business registered under this Act has been terminated, the person responsible for the business shall within thirty days of the termination notify the Registrar in the prescribed form of such termination.
- Statutory fee
- Not in our records
Every business in Malaysia
Sales and consumption tax
- The tax
- SST (Sales and Service Tax)
Quote
Rate of tax is amended to :- 6% (1 Sept 2018 – 29 Feb 2024) 8% (Start 1 Mac 2024) except F&B, Parking, Logistic & Telecommunications – 6%
- Standard rate
- 8%
Service tax is 8% from 1 March 2024, and 6% for food and beverage, parking, logistics and telecommunications. Sales tax on taxable goods is 10% unless the goods are listed for 5% or exemption; a foreign provider of digital services charges 6%.
Quote
Rate of tax is amended to :- 6% (1 Sept 2018 – 29 Feb 2024) 8% (Start 1 Mac 2024) except F&B, Parking, Logistic & Telecommunications – 6%
- Other rates
- 6% Service tax on food and beverage, parking, logistics and telecommunications services, and on digital services supplied by a foreign registered person
- 5% Sales tax on goods listed in the Sales Tax (Rate of Tax) Order 2025
Quote
Rate of tax is amended to :- 6% (1 Sept 2018 – 29 Feb 2024) 8% (Start 1 Mac 2024) except F&B, Parking, Logistic & Telecommunications – 6%
- Registration threshold
- MYR 500,000 · about €109,068
sales value of taxable goods for sales tax; service tax thresholds are set per service group, and a foreign digital service provider registers above RM500,000; 12 months
Quote
Taxable goods manufacturers are required / liable to be registered when; SALES VALUE OF TAXABLE GOODS has exceeded RM500,000 for 12 months period
- Voluntary registration
- Yes
A manufacturer of taxable goods below the RM500,000 threshold may register voluntarily under section 14 of the Sales Tax Act 2018.
Quote
Voluntary registration is permitted under Section 14 of the Sales Tax Act 2018, provided that you are engaged in the manufacturing of taxable goods and the total value has not reached the threshold amount of RM500,000.00.
- A foreign company
- The same threshold applies
A person outside Malaysia supplying digital services to consumers registers with the Royal Malaysian Customs Department once the value of those services passes RM500,000, and files for a three-month taxable period. Nothing read states whether a representative must be appointed, and the position for a foreign supplier of services other than digital services is not stated on these pages.
Quote
A Foreign Service provider is liable to be registered if his total value of digital services provided to consumer has exceeded the prescribed threshold of Ringgit Malaysia five hundred thousand.
- Returns filed
- Depends on the business
Quote
Returns must be filed once every two months (according to the taxable period).
- Tax authority
- Registration page read 2026-10-22
Payment and banking services
3 services name Malaysia on their own list: Paysera, Airwallex, Stripe. Each provider, and what a listing means.
Reference
Its name and code
- Kind
- Sole traderDerived our grouping, the same words in every country
- Name in law
- Sole proprietorship (registered under ROBA 1956)
- ISO 20275 code
- SV3FSecondary GLEIF, Entity Legal Forms code list