Termination of Business of Sole Proprietorship or Partnership

While plenty of advice is floating around about how to bounce back from a business failure and learn from it, that is the end of the process. It is just as important to be prepared to handle everything that leads up to it.

Closing a small Sole Proprietorship or Partnership isn’t just a matter of closing the door and walking away. There are a lot of administrative tasks to take care of, and there’s plenty of potential to miss essential details.

A sole Proprietorship or Partnership Business may be terminated for the following reasons:-

1. Cessation of the business

2. Bankrupt

3. Death of the owner

4. Under Court Order

Business Termination Procedures

1. Complete the Notification of Termination of Registered Business (Form C)

2. The owner and every partner must sign the completed Form.

3. All partners must apply to the counter or through Ezbiz online portal at ezbiz.ssm.com.my

4. Termination of business through Ezbiz Online is for the purpose of cessation of business only.

5. Documents to be attached are as follows:

   1. Business Registration Certificate;

   2. Photocopy of the owner and/ or partner’s identity card;

   3. Photocopy of death certificate in the event of termination upon the death of the owner or an associate partner;

   4. A copy of the court order if termination has been ordered by the court; and

   5. Relevant documents if the owner has become bankrupt.

Registration Fee

1. Notification of Termination of Registered Business – No fee

2. Business Information Print-out – RM10.60

General Guideline

1. Business Termination is to be done within thirty (30) days from the date of business termination.

2. The registered business that has not expired can submit a Notification of Termination of Registered Business.

3. Submit the Notification as a result of death within four (4) months from the date of demise.

4. A confirmation Letter on expired business can be requested from SSM with a payment of RM10.60.

5. The result of the application can be obtained within fifteen (15) minutes from the time submission is made

6. Any person who is a person responsible for his business or a personal representative or next-of-kin or a remaining partner fails to file a notice of termination where a business has been terminated commits an offence and shall, on conviction, be liable to:

   • a fine not exceeding RM10,000; or

   • imprisonment for a term not exceeding one (1) year; or

   • both.