Akta Pendaftaran Perniagaan 1956
Applies to: Federal Act — see s 4 (Application) · Official text ↗
- Defines who must register, excluding companies, government bodies, and certain professionals (s 4).
- Requires the person responsible to apply for registration within thirty days of starting the business (s 5(1)).
- Specifies the details required in the application, such as the business name, nature, and associates' details (s 5(2)).
- Allows the Registrar to refuse registration or revoke it if the business is used for unlawful or prejudicial purposes (s 5C).
- Requires the certificate of registration to be displayed at the principal place of business and each branch (s 11A).
- Sets penalties for offences such as operating without registration or failing to display the certificate (s 12).
What this law is
The Registration of Businesses Act 1956 (Akta Pendaftaran Perniagaan 1956) is numbered Act 197 in the Laws of Malaysia. Where it applies is set out in section 4 (Application).
Its long title, as printed in the official text: An Act to provide for the registration of businesses.
Read every section, the amendment history and the official copy on our law library page for this Act.
How the Act is arranged
- Part I — Preliminary (ss 1–3)
- Part II — Registration, renewal and termination of business (ss 4–8)
- Part III — Miscellaneous (ss 9–23)
Part titles are from the official arrangement of sections.
Time limits in this Act
| What | Limit | Section |
|---|---|---|
| Apply for registration of a new business | not later than thirty days from the date of the commencement of the business | s 5(1) |
| Apply for renewal of registration | within thirty days before the date of expiry of the registration | s 5A(1) |
| Submit particulars of a change in registered details | within thirty days after the change is made or occurs | s 5B(1) |
| Appeal a decision of the Registrar | within thirty days from the date the decision is communicated | s 11(1) |
Offences and penalties
| Offence | Penalty (as written in the Act) | Section |
|---|---|---|
| Carrying on a business without registration, continuing after expiry, failing to comply with summons, making false statements, or obstructing officers | fine not exceeding fifty thousand ringgit or to imprisonment for a term not exceeding two years or to both | s 12(1) |
| Permitting a business to be carried on at premises where the certificate of registration ought to be displayed without it being displayed | fine of two thousand ringgit or to imprisonment for a term not exceeding six months or to both | s 12(2) |
| Any offence under this Act for which no penalty is expressly provided | fine not exceeding ten thousand ringgit or to imprisonment for a term not exceeding one year or to both | s 12A |
Laws cited on this page
| Act 197 | Registration of Businesses Act 1956 Akta Pendaftaran Perniagaan 1956 | PDF · Official ↗ |
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Key sections
| Provision | What it says, in plain words |
|---|---|
| s 1(2) | The Act applies only to Peninsular Malaysia. |
| s 4 | The Act does not apply to businesses owned by registered companies, the Government, registered societies, or certain qualified professionals. |
| s 5(1) | The person responsible for a business must apply for registration within thirty days of the business commencing. |
| s 5(2) | The application must state the business name, nature, start date, addresses, and details of the associates. |
| s 5(3) | Upon receiving the application and fee, the Registrar shall register the business for a period not exceeding five years and issue a certificate. |
| s 5A(1) | An application for renewal must be made within thirty days before the registration expires. |
| s 5B(1) | Any change in registered particulars must be submitted to the Registrar within thirty days after the change occurs. |
| s 5C(1) | The Registrar must refuse registration if the business is likely to be used for unlawful purposes or is prejudicial to security, public order, or morality. |
| s 8(1) | If a person is not recorded in the register, their rights under business contracts are not enforceable by legal proceedings, subject to court relief. |
| s 11(1) | A person aggrieved by a Registrar's decision may appeal to the Minister within thirty days of the decision being communicated. |
| s 11A | The certificate of registration must be kept exhibited in a conspicuous place at the principal place of business and each branch. |
| s 12(1) | Offences include carrying on a business without registration, continuing after expiry, or making false statements, punishable by fine or imprisonment. |
Worked examples
Facts. Ahmad starts a small bakery in Kuala Lumpur on 1 January. He forgets to register the business and only applies on 15 February.
The law. The person responsible must apply for registration not later than thirty days from the commencement of the business (s 5(1)). Carrying on a business without registering it is an offence (s 12(1)(a)).
Outcome. Ahmad has committed an offence by operating the business without registration and is liable to a fine not exceeding fifty thousand ringgit or imprisonment for a term not exceeding two years or both (s 12(1)).
Facts. Siti moves her tailoring shop from Petaling Jaya to Shah Alam on 10 March. She informs the Registrar on 20 April.
The law. Whenever a change occurs in the address of the principal place of business, the person responsible must submit the particulars of the change within thirty days after the change occurs (s 5B(1)).
Outcome. Siti failed to submit the change within the required thirty-day period, which is a breach of the requirement to update registered particulars (s 5B(1)).
Facts. Ravi, who is not registered as an associate of a business, signs a supply contract on behalf of the business. The supplier refuses to pay, and Ravi tries to sue the supplier for the debt.
The law. So long as the prescribed particulars of a person claiming to be an associate are not recorded in the register, no right of such person under any contract is enforceable by suit or other legal proceeding (s 8(1)).
Outcome. Ravi cannot enforce the contract by legal proceedings because his name is not in the register, unless he obtains relief from the High Court (s 8(1)).
Examples are simplified illustrations with invented names; real cases turn on their own facts.
Questions & answers
Who does this Act apply to?
The Act applies to Peninsular Malaysia only (s 1(2)). It does not apply to businesses owned by registered companies, the Government, registered societies, or certain qualified professionals (s 4).
How long do I have to register my new business?
You must apply for registration not later than thirty days from the date the business commences (s 5(1)).
What happens if I don't register my business?
Carrying on a business without registering it is an offence (s 12(1)(a)). Additionally, your rights under business contracts may not be enforceable by legal proceedings (s 8(1)).
How long is a registration valid?
The Registrar shall register the business for a period which shall not exceed five years (s 5(3)).
Do I need to display my certificate of registration?
Yes, the certificate of registration must be kept exhibited in a conspicuous place at the principal place of business and at each branch (s 11A). Failing to do so is an offence (s 12(2)).
Can I appeal if the Registrar refuses to register my business?
Yes, any person aggrieved by a decision of the Registrar may appeal to the Minister within thirty days from the date the decision is communicated (s 11(1)). The Minister's decision is final (s 11(2)).
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Sources
Related
Contracts Act 1950Consumer rightsOfficial resources directory