Sarawak Business Formation
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Congratulations on your initiative to explore business opportunities in Sarawak, the largest state in Malaysia. With a GDP contribution of 9.75%, it’s a promising destination for businesses globally. But how easy is the Sarawak business formation process?
It might seem a little complicated as the process requires navigating a distinct set of regulations compared to Peninsular Malaysia. But don’t worry, our expert team at Law Advisor BD will break down everything about the business registration in Sarawak into a few easy steps here.
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What are the Different Types of Business Entities in Sarawak?

Like Peninsular Malaysia, there are different types of business entities in Sarawak.
- Sole Proprietorship: Owned by a single individual entitled to all profit with unlimited liability.
- Partnership: Owned by two or more individuals who share profits and liabilities.
- Limited Liability Partnership: A business entity that combines a partnership’s flexibility and a corporation’s limited liability protection.
- Private Limited Company: A separate legal entity that provides limited liability for the shareholders and is restricted from public trading of shares.
- Public Limited Company: An entity that offers public trading of shares with limited liability for the shareholders.
Key Statutory Authorities and Ordinances for Doing Business in Sarawak

Sarawak’s business regulations are different from Peninsular Malaysia due to its autonomy under the Malaysia Agreement 1963. Its distinct statutory authorities and ordinances include:
1. Statutory Ordinances
In Sarawak, business is not governed by the Registration of Business Act 1956, unlike Peninsular Malaysia. Rather, it is governed by the Business Name Ordinance and the Business, Professionals and Trade Licensing Ordinance.
Business Name Ordinance: Business Name Ordinance mandates the registration of businesses in Sarawak to ensure they operate under a registered name and maintain relevant records.
Business, Professionals and Trade Licensing Ordinance: It is an ordinance that governs the licensing and taxation of professions, trades, and other gainful occupations operating in Sarawak.
2. Statutory Authorities
Inland Revenue Board (Lembaga Hasil Dalam Negara, LHDN): LHDN is the governing agency primarily responsible for all tax-related matters in Malaysia. However, in Sarawak, it also oversees the name registration for businesses.
Companies Commission of Malaysia (Suruhanjaya Syarikat Malaysia, SSM): SSM is responsible for the incorporation and regulation of companies in Malaysia once their name is confirmed with LHDN.
How to Register Business in Sarawak

Follow these easy steps to form your business in Sarawak.
Step 1: Obtain a Unique Business Name
You can do it by both physically visiting the authority office or by using their online portal.
For Registering Business Name Offline
To obtain a unique business name offline, follow the steps below:
- Visit the Inland Revenue Board (LHDN) office in Kuching Sarawak
- Go to the Business Name Search Counter
- Collect the Business Name Search Slip
- Fill out the slip with three potential names of the business with other required information
- Get confirmation on the availability of the chosen business name
For Registering Business Name Online
The website of the Electronic Resident & District Office (e-R&DO) also allows online business registration.
Electronic Resident & District Office: It is an online program that the Sarawak State Government has developed to streamline different administrative processes and services.
Here are the steps for Sarawak business registration search process to find a unique name using the e-R&DO system.
- Visit the e-R&DO Website
- Create your account with the required information
- Login using your credentials
- Click on Search for your desired business name
- See if the chosen name is available or not
- Continue with the registration process
Step 2: Secure a Suitable Location for the Business
Securing an appropriate location for your business is a crucial and here’s what you need to do:
- Identify your needs regarding the location, customer proximity, and accessibility of the business
- Research areas in Sarawak based on traffic, target market, competition, etc.
- Consult real estate agents
- Visit potential spaces
- Ensure the location compliance
- Evaluate costs of rent and other utilities
- Prepare required documents like Tenancy Agreement or Sales and Purchase Agreement to secure the proof of the business location
Tenancy Agreement: It is a legal contract between the landlord and the tenant that includes the terms and conditions of renting the specific property.
Sales and Purchase Agreement: It is a legal contract between a buyer and a seller of a property that includes the terms and conditions related to its sale or purchase.
Step 3: Prepare Other Required Documents
- Business Names Ordinance Form (Borang R20): Business Names Ordinance Form is an important document that outlines all essential details related to the business, such as:
- Business name
- The details of the partners
- Business address
- The nature of the business
- The date of commencement
- Specimens of all official business stamps
- Contact information
- Form 24: The Form 24 is known as the Notice of Intention to Register a Company and is filed by promoters with the Companies Commission of Malaysia (SSM).
- Form 49: The Form 49 is a crucial document that includes the Memorandum of Association and Articles of Association.
- Form 9: The Form 9 document refers to the declaration form filed by the first directors stating their consent to act as the company’s directors.
- Form 9A: It is a form of declaration completed by the secretary of the company to act as per the role.
- Form 32C: The Form 32C is a document that outlines the details of the primary shareholders or subscribers of the company.
- Trade License Application Form (Borang IRD No. 8): The Trade License Application Form is a document required to apply for a trade license from the Inland Revenue Board in Sarawak.
- Borang TL from Jabatan Statistik: Borang TL is a form completed by the company for providing Sarawak’s Department of Statistics the related data and statistics of the business.
- Proof of Minimum Paid-up Capital: It requires opening a corporate bank account in Sarawak with a deposit of the minimum paid-up capital for the company.
Step 4: Submit the Documents to SSM and Pay the Required Fees
You can visit the SSM office in Kuching, Sarawak physically to submit the above documents or apply using the SSM e-Lodgement System. It should take around 5 to 10 working days based on the entity and nature of the business.
Here’s a breakdown of the fees associated with the company registration process in Sarawak
Type of Fee | Amount (in RM) |
Business Name Registration | RM 50 per year |
Branch Fee | RM 5 per branch per year |
Business Information Fee | RM 10 |
Trade License Application Fee | Ranges from RM 50 to RM 200 per year |
Application for Incorporation | RM 1,000 to RM 3,000 |
Step 5: Obtain Additional Licenses or Permits
Certain businesses like food and beverage, manufacturing, or retail require sector-specific licenses or permits from local authorities. Obtain specific licenses or permits based on the type and nature of your business.
Step 6: Register for Taxes
Now register for taxes and get your Tax Identification Number. To get your TIN follow the steps below:
- Visit the MyTax Portal online and create your account
- Use the e-Daftar section
- Select the taxpayer category
- Fill out the application with required information and documents
- Submit and track your application
Receive your Tax Identification Number
Step 7: Open a Corporate Bank Account
Open a corporate business account for conducting financial transactions. You will need to provide the details of the owners/directors, incorporation certificate, and Memorandum of Association and Article of Association to open a corporate account in Sarawak.
Considerations for Foreign Investors

- Foreigners, even non-Sarawakians, require Employment Pass or work permit to work or operate the business physically.
- Require at least one local partner or director
- May require approval from the Ministry of Domestic Trade and Consumer Affairs for certain businesses.
- Must provide proof of paid-up capital expenditures within Sarawak like expenses related to office renovations, asset purchases, etc.
FAQs
If you are a non-Sarawakian, you will require an employment pass or work permit to work in Sarawak.
Yes, West Malaysian can open business in Sarawak providing they comply with the Labour Ordinance 1958 and immigration requirements that mandate employment passes for non-Sarawakians.
The registration process generally takes around 3 weeks to complete providing that the required documents are ready.