Business Registration Numbers in Malaysia: A Comprehensive Guide

Starting August 1st, 2024, Malaysia has introduced mandatory e-invoicing for all businesses. This new requirement means that every transaction must include an electronic invoice. When generating an e-invoice, suppliers must fill out numerous fields detailing sales, transaction and the buyer. One crucial piece of information required is the Business Registration Number (BRN) number of the buyer.

BRN is a unique identifier essential for various administrative and regulatory processes. This article will provide a detailed overview of what a Business Registration Number is, the different types, its structure, and how to obtain one.

What is a Business Registration Number (BRN)?

A Business Registration Number (BRN) is a unique set of 12 digits assigned to a business entity upon its incorporation with the Companies Commission of Malaysia (SSM), also known as Suruhanjaya Syarikat Malaysia. 

This number serves as an official identification for the business throughout its lifetime. It is used to track and manage the business’s activities, legal status, and compliance with regulatory requirements.

Example

Company No.: 202201234565

Business Registration Number Format

The format of BRN in Malaysia has evolved over time. The new format introduced by the Companies Commission of Malaysia (SSM) from October 11, 2019, consists of 12 digits. This format is designed to streamline the identification process and ensure uniformity. The breakdown of the 12-digit BRN is as follows:

First 4 Digits: These digits represent the year of incorporation. Example: 2022 indicates the company was incorporated in the year 2022.

Next 2 Digits: These digits represent the type of business entity.

• 01: Locally owned Private/Public Limited Company
• 02: Foreign-owned Private/Public Limited Company
• 03: Sole proprietorship or partnership
• 04: Locally owned Limited Liability Partnership (LLP)
• 05: Foreign-owned Limited Liability Partnership (LLP)
• 06: LLP for professional practice

Last 6 Digits: These digits are the unique entity number, assigned sequentially. Example: 234565 is a unique identifier for the entity.

Examples of BRN

• RSWD Sdn. Bhd. (incorporated in 2022 as a locally owned private limited company): 202201234565
• XYZ LLP (incorporated in 2023 as a foreign-owned LLP): 202305123456

Old BRN Format (Pre-October 2019)

Before the introduction of the new 12-digit format, BRNs included a 7-digit number followed by an alphabet. The alphabet indicates the type of business entity.

• Example: 1234567-A

Transition for Existing Companies

For companies incorporated before October 11, 2019, the new 12-digit BRN has been assigned alongside the old format. Existing companies can obtain their new BRN from SSM’s online portals such as e-Search, e-info, and MyData services.

How to Get a Business Registration Number (BRN) in Malaysia?

To obtain a Business Registration Number (BRN) in Malaysia, you must register your company with the Companies Commission of Malaysia (SSM). Here are the detailed steps involved in getting a BRN number:

Choosing a Business Structure

Select the appropriate business structure for your company - Sole proprietorship, Partnership, Limited liability partnership (LLP), Private limited company (Sdn. Bhd.), etc

Name Reservation

• Propose a Name: Submit a proposed company name for approval. Ensure the name is unique and not similar to existing company names.
• Check Name Availability: Use the SSM’s online platform to check if the desired name is available.
• Submit Name Reservation: Once the name is available, submit the name reservation form through the SSM's online system. The fee is MYR 50 per application.

Incorporation Process

Prepare Required Documents:  Documents such as Memorandum of Association (MOA), Declaration by a Director or Promoter, Declaration of Compliance, Identification Documents, etc

Submit Incorporation Form: Complete and submit the incorporation form (Superform - Section 14) through the MyCoID system.

Payment: Pay the incorporation fee through the portal.

Approval and Issuance of BRN: 

• Application Review: SSM will review the application, which takes approximately 3-5 working days.
• Issuance of Notice of Registration: Upon approval, SSM will issue a Notice of Registration (Section 15), which includes the Business Registration Number.

Importance of BRN

The Business Registration Number is vital for several reasons:

• Legal Identification: Serves as a unique identifier and proof of legal registration.
• Administrative Functions: Required in official documents and regulatory compliance.
• Banking and Financial Transactions: Necessary for opening bank accounts and processing financial transactions.
• Business Operations and Licensing: Essential for obtaining licenses, permits, and participating in government tenders.
• Employment and Social Security: Used for registering employees and payroll processing.
• Commercial Trust and Consumer Confidence: Builds trust with stakeholders and ensures consumer protection.
• Data Management and Reporting: Facilitates accurate record-keeping and aids in market analysis and economic planning.
• E-Invoicing: Required for generating and processing electronic invoices. It’s a required field for generating e-invoices.

Conclusion

Business Registration Numbers (BRNs) are unique legal identifiers for businesses in Malaysia. They are essential for a variety of purposes, including logging into government portals, applying for licenses, reporting compliance, and obtaining other registrations. BRNs serve as one of the most important identification numbers for businesses in Malaysia.