Understanding when you need to register with SSM (Companies Commission of Malaysia) and how Tax Identification Numbers (TIN) work is crucial for proper tax compliance. The requirements differ based on your business structure and income type.
- SSM = Business registration with Companies Commission
- TIN = Tax Identification Number from LHDNM (Inland Revenue Board)
- Not all individuals need SSM registration
- TIN is required for all taxpayers
✅ Must Register SSM
- • Sole proprietors with business name
- • Partnerships
- • Companies (Sdn Bhd, Bhd)
- • Business entities with employees
- • Those requiring business bank accounts
- • Import/export businesses
⚠️ May Not Need SSM
- • Individual freelancers using personal name
- • Occasional side income
- • Personal services (consulting, tutoring)
- • Income below RM50,000 annually
- • No business bank account needed
- • No employees or business premises
A Tax Identification Number (TIN) is a unique identifier assigned by LHDNM to every taxpayer. It's different from your IC number and is used for all tax-related communications.
TIN Requirements:
- • All taxpayers must have a TIN
- • Automatically assigned when you first file taxes
- • Required for all tax forms and communications
- • Different from business registration numbers
Example Scenarios
Profile:
- • Graphic designer working from home
- • Income: RM35,000/year
- • Uses personal name for work
- • No employees or business premises
SSM Status:
Not required - can operate under personal name
TIN Required:
Yes - must register with LHDNM
Tax Form:
Form BE (Employment Income)
Profile:
- • IT consultant with business name
- • Income: RM80,000/year
- • Has business bank account
- • Hires subcontractors occasionally
SSM Status:
Required - registered as Enterprise
TIN Required:
Yes - separate business TIN
Tax Form:
Form B (Business Income)
Profile:
- • Full-time employee (RM60,000/year)
- • Occasional freelance work (RM15,000/year)
- • Uses personal name for side work
- • No business registration needed
SSM Status:
Not required - side income under personal name
TIN Required:
Yes - one TIN for all income
Tax Form:
Form BE (Employment + Other Income)
Profile:
- • Two partners running a consultancy
- • Business income: RM150,000/year
- • Registered business name
- • Business bank account and employees
SSM Status:
Required - Partnership registration
TIN Required:
Yes - business TIN + individual TINs
Tax Form:
Form P (Partnership) + Form B (Individual)
SSM Registration
- 1. Choose business structure (Sole Proprietor/Partnership/Company)
- 2. Reserve business name (if applicable)
- 3. Prepare required documents (IC, address proof)
- 4. Submit application online or at SSM office
- 5. Pay registration fees (RM30-1,000 depending on structure)
- 6. Receive business registration certificate
TIN Registration
- 1. Visit LHDNM office or register online
- 2. Provide personal identification (IC/Passport)
- 3. Complete registration form
- 4. Receive TIN immediately (if in person)
- 5. TIN will be mailed if registered online
- 6. Use TIN for all future tax filings