how to start an online business in malaysia

How to Start an Online Business in Malaysia

I decided to check with both Malaysian Communications and Multimedia Commission (SuruhanjayaKomunikasi dan Multimedia Malaysia, SKMM) and Companies Commission of Malaysia (SuruhnajayaSyarikat Malaysia, SSM) for the answers.

Clarification from Malaysian Communications and Multimedia Commission, MCMC

I spoke with the representative from the Licensing Department and asked him if someone, who isdoing online business, need to register with MCMC. His answer is NO, if your business activity is notrelated to the telecommunication industry. Example of business that is related to the industry is,selling SMS services or networking services. So if you are doing these types of businesses, then youneed to register.

Clarification from Companies Commission of Malaysia, CCM

I also spoke with the representative from Customer Service, CCM, to get answers to my questions:'Do I need to register as a business entity to do online business?', 'What if my income is throughGoogle AdSense (through my blog or articles that I write online)?', 'If I do this activity part-time, likeselling on an adhoc basis, through eBay, lelong.com.my etc, or selling cookies during festiveseasons, do I still need to register?' The answer is YES.

Her rationale is, as long as there is income, you need to register. Even if your income is throughblogging and writing articles online. For these categories of people, her suggestion is to register as asole proprietor, which is the cheapest form of registering a business (see incentives, below).

She further adds that; doing online business in Malaysia is relatively new, compared to otherdeveloped economies such as the UK, Australia and USA etc. Regulations and specific requirementsare in place, to protect would be buyers from any possible fraud. Business people should also beaware of the code of ethics and of their responsibilities. There are some bad hats that are out todeceive consumers.

However, she did agree that even if someone were to register his business, it doesn't mean theconsumer is fully protected.

Anyway, with all these explanations, I still feel that the above rationale doesn't quite apply tobloggers http://stellardirectory.com and writers who earn through PPC etc. And for bloggers toregister as a business entity is really weird. Unfortunately, laws are laws and we have to comply, nomatter how ridiculous it may sound!

In addition, and this is the best part, it is also your responsibility to register and declare your incomewith the Inland Revenue Board http://www.businessonline.standardbank.com/ of Malaysia (LembagaHasil Dalam Negeri Malaysia, LHDNM)