Foreign investors can be represented by our team of specialists in opening a partnership in Malaysia. This article provides information about existing conditions for opening such an entity. Tailored company formation services in Malaysia are at the disposal of our new customers.
Table of Contents
How is partnership registration done in Malaysia?
Those who are interested in opening a partnership in Malaysia should know that the registration process is handled by the Companies Commission Malaysia (SSM), an institution where all companies incorporated here have to register, following the basic steps presented in the list below:
- complete the Business Registration Form, which can be done by using a personal name or a trade name;
- if the latter applies, the investor will need to submit the Form PNA.42 for the registration of the company’s trading name;
- obtaining approval for the proposed trading name, as per the stipulations of Rule 15, Rules of Business Registration;
- the registration of the business has to be concluded for a period of a minimum of one year and a maximum of five years.
A partnership in Malaysia is a type of business that requires at least two partners (and up to 20), which should be registered with the SSM by following the above-mentioned rules. The registration of a local business can be completed at any of the SSM offices.
An important aspect of the local legislation is that foreigners should have a permanent residence permit issued by the local authorities in order to register a company in Malaysia, as sole proprietorships and partnerships can’t be established by foreign citizens; our team of consultants in company formation in Malaysia can offer more details on this matter. We can also put you in touch with other foreign experts in company incorporation who are our local partners, including Bahrain.
Here is an infographic with information on partnerships in Malaysia:
Eligibility criteria for partnerships in Malaysia
A limited liability partnership, the most common form, can be established by at least 2 individuals, aged over 18. They must be residents of Malaysia, and one of them must be qualified as a company secretary. Furthermore, the agreement on which this partnership is established must contain detailed information about the activities of this business entity, the individuals, and a partnership compliance officer. Without this information, such a partnership cannot be registered. Public-private partnerships (PPP) in Malaysia are regulated by the Public Finance and Fiscal Responsibility 2023. There are three main categories of such partnerships:
- concession,
- alternative mode,
- privatization.
What are the main features of PPP in Malaysia?
Each category of private-public partnership has certain characteristics and can be chosen depending on the projects, activities, and functions. Here are some interesting facts about these partnershipsavailable in Malaysia:
- RM 50 million is the minimum threshold for a private-public project,
- in case of concession, the partnership must be settled for at least 7 years,
- agencies and ministries in Malaysia are the ones that issue specific approvals depending on the partnership and its purpose, after rigorous evaluations.
- in many cases, a special-purpose vehicle is recommended to implement a PPP project in Malaysia.
- most public-private partnerships in Malaysia are developed in sectors such as construction, utilities, government services, transportation, agriculture, etc.,
How can one register a Malaysian LLP?
The basic requirement is to have at least two partners who will act as the founders of the LLP. The incorporation is done in accordance with the stipulations of the LLP agreement, the statutory document of this type of legal entity, which can be presented at length by our team of specialists in company formation in Malaysia. This business structure is open to a wide category of business activities and to numerous professionals. It can also be used as a way to start a small or medium-sized company in Malaysia.
Once the LLP is registered with the SSM, where the entity will receive a certificate of incorporation, its founders should conclude other registration steps with other relevant institutions. For example, it is necessary to register for taxation, a procedure done with the Inland Revenue Board of Malaysia. For employment purposes, the LLP has to be registered with the Employees’ Provident Fund and with the Social Security Organization. Here is a video presentation on partnerships in Malaysia:
Can a company type be changed into an LLP in Malaysia?
Yes, several company types can be modified into an LLP in Malaysia. This applies in the case of a conventional partnership, presented at the beginning of the article, and to a private company. The application for the modification has to be done by the compliance officer, and the procedures to change the legal entity will vary based on the company type that will be changed into an LLP. When changing a conventional partnership into an LLP, the following information is required:
- the name and the registration number of the partnership incorporated in Malaysia;
- the registration date of the conventional partnership and the current financial situation of the structure;
- the new proposed name of the LLP and the business activities that will be carried out under the new structure;
- the proposed registered office of the LLP and the names of the partners forming the LLP;
- personal details of the LLP partners and the name and personal details of the compliance officer.
Statistics on partnerships in Malaysia
Here are some interesting statistics on partnerships in Malaysia:
- According to data and reports provided by the Companies Commission of Malaysia, there were around 3,700 limited liability partnerships registered in 2025.
- The same data showed that there were over 353,000 total new registered businesses in 2025, including partnerships in Malaysia.
Persons who need to receive more information on how to open a partnership or how to set up a company can contact our agents in company incorporation in Malaysia for assistance. If you want to open a partnership in another country, such as Argentina, we can put you in touch with our local partners.