BRN Number Malaysia: What It Means for Xero Invoicing

 

In Malaysia, every business entity is identified by a Business Registration Number (BRN). This unique identifier assigned by the Companies Commission of Malaysia (SSM) is crucial for regulatory compliance, tax filing, and most importantly e-invoicing.

For small businesses using Xero, understanding how the BRN number Malaysia system works is the key to staying compliant with LHDN regulations and ensuring seamless integration with the MyInvois portal.

What Is The BRN Number Malaysia?

The Business Registration Number (BRN) is the official registration number format introduced by the Suruhanjaya Syarikat Malaysia (SSM) in October 2019. It replaced older formats to create a new registration number format that works consistently across entities registering in Malaysia.

This number serves as the unique identifier for all companies, foreign LLPs, limited liability partnerships, and professional practices. It appears on official documents, invoices, and in SSM’s online systems.

what is brn number malaysia business registration number

The New BRN Number Format Explained

The new format consists of 12 digits. These digits represent:

  1. First 4 digits: Year of incorporation
  2. Next 2 digits: Entity type (local company, foreign company, LLP, or business)
  3. Last 6 digits: Sequential identifier

For example: 202401123456 indicates a company incorporated in 2024 as a specific business structure. This format consists of clear segments to avoid confusion between existing companies and new business entities registering.

business registration number malaysia format digits explained

BRN Number vs. SSM Number

Many people confuse business registration number BRN with the older company’s registration number (often 7 digits + suffix like -A).

  1. BRN Number Malaysia: standardized registration details introduced by SSM in 2019.
  2. SSM Number / CRN: older company number, still seen in registration certificates and older official documents.

While both refer to the same legal status, the BRN is required for e invoice validation and compliance with Inland Revenue Board (LHDN) requirements.

Why Is the BRN Required for E-Invoices?

Regulatory Compliance

The Inland Revenue Board of Malaysia (LHDN) mandates that all invoices submitted under the consolidated e invoice system must include the BRN. The BRN is the official unique identifier assigned by the Companies Commission of Malaysia (SSM).

Without it, LHDN cannot verify if the invoice originates from a legally registered business entity. No BRN, no legal invoice.

Linking to Tax Records

Every business entity also has a Tax Identification Number (TIN). The BRN works together with the TIN to connect:

  1. Business registration details (via SSM)
  2. Tax compliance records (via LHDN)

This ensures invoices are tied directly to the right company name, business address, and business activities.

Fraud Prevention

By requiring the BRN, Malaysia reduces risks of:

  1. Fake invoices issued by unregistered businesses
  2. Invalid financial transactions that can’t be traced
  3. Tax evasion through ghost companies

It’s a safeguard that helps authorities detect fraud and protect small businesses from dealing with non-compliant entities.

E-Invoice Validation in MyInvois Portal

When invoices are submitted to the MyInvois portal, the e invoice validation engine checks:

  1. BRN of the seller
  2. BRN of the buyer
  3. BRN format consistency (12 digits, correct entity type)

If the BRN doesn’t match SSM’s online portal services records, the invoice is automatically rejected.

Consistency Across Business Structures

The BRN is required not just for local companies but also for:

  1. Foreign companies operating in Malaysia
  2. Limited liability partnerships (LLPs)
  3. Professional practices (law, accounting, etc.)

This ensures regulatory requirements apply equally, regardless of business structure or entity type.

Alignment with Global Tax Trends

Many countries like Singapore, India, and Europe with VAT IDs already require a unique registration number for invoices. Malaysia’s adoption of BRN for self billed invoices, consolidated e invoices, and standard invoices puts it in line with international tax compliance practices.

Self Billed Invoices and BRN

For businesses issuing self billed invoices or consolidated self billed e invoices, the BRN is still mandatory. The MyInvois classification codes and appointment declaration processes also require valid registration details linked to your BRN.

BRN Number Malaysia in Xero

When Malaysia rolled out its consolidated e invoice framework, software providers like Xero software adapted to support regulatory requirements. For Malaysian users, one of the most important data points in Xero is the Business Registration Number (BRN).

Xero’s integration ensures registration details (BRN, TIN, company name) automatically populate into the invoice data file. This helps businesses avoid manual entry errors and supports regulatory compliance.

Showing your company’s registration number on invoices boosts credibility with clients and confirms your legal status as a registered business entity.

For companies using Xero software, the BRN must be entered in both:

  1. Organisation settings (to show your own company name, BRN, and business address)
  2. Customer and supplier records (to validate counterparties’ BRN and tax identification number TIN)

Without accurate BRN data, e invoices submitted through Xero to the MyInvois portal may be rejected.

Step-by-Step: Adding BRN in Xero

  1. Go to Settings and select Organisation Details. Enter your BRN number Malaysia and tick “Show on invoices.” Please be reminded the BRN number has to be setup in Invoici during integration of Xero with LHDN MyInvois Portal.

Below is the screenshot of correct BRN in Xero

BRN Number Malaysia: What It Means for Xero Invoicing 1

Below is the screenshot of correct BRN and TIN in Invoici

Xero Invoici BRN Number

  1. Update Contacts. Add your customer or supplier’s registration number, tax identification number, and business activities.
  2. Generate Invoice. Ensure the BRN number shows in the “From” and “To” sections.
  3. Submit to MyInvois portal. Check that e invoice validation is successful.

Example of BRN in Xero Validated E-Invoice

Imagine Amis Asia Xero Testing has BRN 202401011999. It invoices CAL CLOUD SDN BHD with BRN 201501041487.

The Xero invoice will show:

From: Amis Asia Xero Testing | BRN: 202401011999

To: CAL CLOUD SDN BHD | BRN: 201501041487

This is a TIN and BRN malaysia xero example showing why the TIN and BRN required for xero invoices is non-negotiable.

BRN Number Malaysia: What It Means for Xero Invoicing 2

Common Issues SMEs Face with BRN in Xero

  1. Using old company registration numbers instead of the new 12-digit number format.
  2. Forgetting to update BRN when there’s a change of business structure (e.g. converting to LLP).
  3. Leaving the BRN field blank in customer or supplier records, leading to failed e invoice validation.
  4. Not aligning the BRN with other official documents like the registration certificate or SSM data.

Best Practices for BRN in Xero

  1. Always confirm your BRN using SSM’s online portal services (such as SSM e Search portal).
  2. Keep a record of your registration certificate and necessary documents for audits.
  3. Update all entities registering in your Xero contact list with correct BRNs.
  4. Pair BRN with Tax Identification Number (TIN) for full regulatory compliance.
  5. Work with advisors like Caltrix to ensure your Xero invoicing setup matches Malaysia’s LHDN regulations.

Find BRN Number in SSM’s Online Portal

To find your business registration number BRN, use SSM’s portal such as the SSM e Search portal or MyData. These allow entities registering or existing companies to confirm their registration details.

When you download your registration certificate, the new format BRN will be clearly displayed, ensuring you meet regulatory compliance.

BRN and Tax Identification Number (TIN)

Alongside BRN, businesses also need a Tax Identification Number (TIN) from the Inland Revenue Board. While the BRN proves your registration, the TIN ensures your business is registered for tax compliance.

Both must appear on invoices and other financial transactions submitted through MyInvois portal.

BRN for Local and Foreign Companies

The BRN confirms the legal status of the business entity and links to regulatory authorities.

  1. Local company: Must use BRN for all business activities and compliance filings.
  2. Foreign company: Still requires a BRN when operating in Malaysia, including foreign LLPs and branches.

Professional Practice and LLP Structures

Limited Liability Partnerships (LLP) and professional practices (like accounting or legal firms) also receive a business registration number. This ensures regulatory requirements apply evenly across business structures.

Regulatory Compliance and Relevant Authorities

The commission of Malaysia SSM issues BRN, while the Inland Revenue Board ensures BRN is included in consolidated e invoices. Together, these relevant authorities ensure all companies meet tax compliance and regulatory requirements.

Significant Changes After BRN Introduction

The shift to a new registration number format brought significant changes for existing companies. Businesses had to update official documents, application review processes, and invoice templates to match the new format.

Business Registration Process in Malaysia

When you register a business entity, the steps include:

  1. Name reservation on SSM’s portal.
  2. Submission of necessary documents like business plan, business address, and owner details.
  3. Application review by SSM.
  4. Issuance of registration certificate with your BRN.

Ensuring Compliance with BRN

Businesses must regularly update business information and ensure BRN is present in:

  1. Invoices
  2. Self billed e invoices
  3. Consolidated e invoices
  4. Official documents like contracts and proposals

This helps small businesses stay compliant and avoid penalties.

Seamless Integration with Xero Software

The strength of Xero software lies in its seamless integration with Malaysia’s consolidated e invoice framework. By ensuring your company’s registration number and BRN are correctly entered, you can automate invoicing while meeting regulatory compliance.

Conclusion

The BRN number Malaysia is more than just a registration number. It is the foundation of regulatory compliance, ensuring your company name, business address, and business activities are linked to a unique identifier.

For invoices, whether self billed, consolidated, or standard, the business registration number BRN must always be present. With tools like Xero software and guidance from trusted advisors like Caltrix, your business can maintain compliance, avoid penalties, and ensure smooth financial operations.

At Caltrix, we help small businesses and professional practices navigate the registration process, maintain accurate registration details, and ensure compliance with LHDN regulations.

With our expertise in Xero invoicing, we make sure your business registration number is always aligned with regulatory requirements.

author

Alfred Ang

Alfred has led the company in helping over 500 SMEs successfully transition to digital platforms. With expertise in cloud accounting software implementation and other tech stacks. Alfred empowers businesses to access real-time, accurate financial data for informed decision-making. As a Chartered Accountant (CGMA, ACMA, and MIA member), he is driven by the mission to streamline traditional accounting processes. Alfred’s accomplishments include winning the Xero Award for Medium Accounting Partner of the Year in 2024.