How to Start an Online Business in Malaysia

1. How to Start an Online Business in Malaysia

2. When 400 Malaysian online businesses were accused of not registering with the Malaysian Company Commission (SSM) in 2010, it has aroused the online business community. In fact, it creates more confusion and, even as far as the question, "why should I register as a company to do business online, when I only do part time or hobbies?" And "My income is through advertising on my site." blog. Do I need to register? "Still being asked.

3. All online businesses are required to comply with the Malaysian Consumer Protection Regulations (Electronic Business Transactions) 2012 (I discuss what businesses need to do to follow these regulations in the previous article, Malaysian Regulation and E-Commerce and Online Trade Protection). This includes businesses that sell products through social networking sites like Facebook and Instagram.

4. If a business fails to comply, then it is a crime under the registration of the Business Act. The maximum penalty is RM50000 (around $ 13,000 USD) or up to two years in prison. This is not a small violation, and for those who try to increase their current income, it is not worth the risk. The registration fee is only RM30, and registration is a simple process. Businesses will also get other benefits, such as access to microcell and insurance protection.

5. To start an online business in Malaysia, you need to: • Register with MMC if your business activity relates to the telecommunication sector. • Register with CCM as a business enterprise, no matter what. • Get a domain name, a hosting account, and a properly designed website. If you want to try out an online business before spending additional money on a website, you can still sell through Facebook, eBay, lelong.com.my, mudah.my, your blogs, and other social-media sites. • Register and declare income with the Inland Revenue Board of Malaysia. • See below for a detailed write-up for each of the above steps.

6. Do I Need to Register as a Business Entity to Do Online Business? I checked with both the Malaysian Communications and Multimedia Commission, and the Companies Commission of Malaysia to confirm these answers. Clarification from the Malaysian Communications and Multimedia Commission (MCMC) I spoke with a representative in the Licensing Department and asked him if someone who is doing business online needs to register with MCMC. His answer was no unless their business activity is related to the telecommunications industry. An example of a business that would need to register is one selling SMS services or networking services. If you are doing business in this industry, then you need to register.

7. Clarification from Companies Commission of Malaysia (CCM) • I also spoke with the customer service department at CCM to get answers to my questions: • "Do I need to register as a business entity to do business online?" Yes • 'What if my income is through Google AdSense (through my blogs or other articles that I write)? "You still need to register. • "What if I do this part-time activity, like selling on an ad-hoc basis via eBay, lelong.com.my, etc.? Or selling cakes during the festive season? Do I still need to register?" Yes • The reason for that is as long as there is income, you must register. This applies even if your income is through online blogging and writing articles. For these categories, the single owner is registering, which is the cheapest form of registering a business.

8. He further added that conducting online business in Malaysia was relatively new compared to other developed countries, such as Britain, Australia and the United States. There are specific rules and requirements to protect the potential buyers from all possible fraud. Employers must also be aware of their code of ethics and responsibilities. However, agrees that even if someone's registers their business, that doesn't mean consumers are fully protected.

9. However, with all the explanations, I still feel that I didn't have enough to apply to bloggers and authors who produced through PPC or other similar programs. For bloggers to register as a business entity is really strange. Unfortunately, the law is we must obey, no matter how ridiculous it sounds! In addition, this is the best part, you are also responsible for registering and stating your income with the Inland Revenue Board of Malaysia.

10. Step #1: If Needed, Register With the MMC As a reminder, you only need to register with the MMC if your business is related to the telecommunications industry. It is recommended that you visit the nearest MMC office to discuss your business and its mission. You may want to read the guidelines before meeting up with a representative.

11. Step #2: Register a Company Name and Business with CCM • For guidelines on which business entity you want to register your business as and how to register a company name, please refer to Companies Commission of Malaysia's website (below are links based on which type of entity you will be registering as): • Starting a Sole Proprietorship/Partnership • Limited and Unlimited Companies • It is recommended that you visit their office in person to register, which takes one hour for business registration and one day for company registration. You can also do everything online.

12. Step #3: Set Up Your Website/Online Store I assume that you already know what products you will be selling online, that you've done your research on your competitors, that you know what will be your unique selling proposition, and that you are ready to start an online business.

13. Get a Domain Name If you prefer to sell your products through a dedicated website, then you'll need to obtain a domain name. You can either buy an existing domain name or register a new domain name for your website. Alternatively, your web hosting Service Company or your website designer may also provide this service. There are several companies in Malaysia that will sell ready-made domains or register a new domain name with any of the following extensions:

14. .my • .com.my • .net.my • .org.my • You can find these companies through an Internet search and make an appointment to meet with them to discuss your requirements. Remember to choose a reliable company.

15. Find a Company to Host Your Website • Your website needs to be hosted on a web server in order for people to view and buy your products. You can either choose an independent company for the web hosting service, buy a package provided when you buy your domain, or buy a package through your website designer. Here are the criteria to keep in mind when you're looking for a web hosting service: • What is the storage capacity? • Do they offer a domain-based email address? • What is the percentage of time the server is up and running? • What's the server security like? • Do you have the ability to host a blog and feedback forms?

16. Design Your Website You can buy a ready-made website or have one designed if you have specific requirements. Your website must at least offer the ability for customers to put products in a shopping cart and for you to edit it as needed. It should also have a well-designed layout. Most people don't have the patience to read websites, so they scan them. Be brief and make your homepage easy-to-read. As always, ask for a demo before deciding.

17. Shopping Cart Software A positive and easy online shopping experience is very important for online sales. Even if your product is well worth it, you cannot get a regular customer if the purchase process is slow and difficult. Remember to make sure that your website has an easy-to-read layout, easy-to-use shopping elements, several payment options, and the appropriate options and shipping and shipping rates. See demo before purchasing shopping cart software.

18. Payment Method In Malaysia, you can register with companies such as Payment Malaysia, iPay88, or MOLPay (formerly known as NBePay) Payment Gateway for your sales transactions. This is a trusted and reputable company, and prospective buyers will not hesitate to buy products from your site. IPay88 and MOLPay accept Malaysian online bank transfers that do not have a credit card. You can choose to direct debit through internet banking like Mbank 2U, but prospective buyers may hesitate to move your money before receiving goods if they don't know your company.

19. Shipping If your shipping costs are high and delivery times are long, these will also deter potential buyers from buying from you. If your sales volume is high, you should negotiate with Pos Malaysia or another courier company to ensure your customers have a positive experience. Selling Online Without a Website If you don't want the hassle of having a website, you can sell items on Amazon, eBay Malaysia, Etsy Malaysia, Facebook, lelong.com.my, and even on your blog site.

20. Site Traffic • Whether you sell through a dedicated website or otherwise, you need to get traffic. If there's no traffic, there will be no buyers. Examples of how you could get traffic to your site are: • Register with search engines such as Google and Yahoo. • Online advertisements on Google or Facebook ads • Offline marketing through flyers, billboards, media ads, and direct mailing • Publish an email-based newsletter. • If you have a blog, list it in major blog directories.

21. Step #4: Register and Declare Income with the Inland Revenue Board Lastly, you need to register and declare your income with the Inland Revenue Board of Malaysia. This is the simplest of all the procedures, and I will not be detailing the steps here. The Malaysian Inland Revenue Board has guidelines on taxation for ecommerce. This document explains what is taxable for e-commerce income derived from inside and outside Malaysia and other scenarios.

22. Why You Should Start an Online Business As I mentioned, CCM requires everyone to be registered in order to do business online. When we consider the huge potential of e-commerce in Malaysia, registering as a business entity is a small issue. In fact, it's a way to gain the trust of your potential buyers.

23. Open Your Business to a Bigger Market If you have an existing brick and mortar store, consider expanding to a much wider market by starting an online business, as the growth potential in Malaysia is huge. If you are doing it part-time or just earning through Google AdSense, don't be disheartened by the need to register. Your small venture might grow into something big, and as a registered business entity, it's easier to get additional funding, if required. To quote a Chinese proverb: “All cats love fish but fear to wet their paws.” Don't be afraid to venture into this new business environment.

24. Some Tips on Advertising Your Business • To help you get started on your business, here are some tips on advertising: • Who are your consumers? Market your products to people who will most often visit your site and buy your stuff. You cannot advertise to everybody because it will be expensive. To be successful, your marketing and advertising efforts must capture the attention of people that you intend to sell to (e.g. students, teenagers, mothers, etc.).

25. To connect with your customers, your advertising and marketing style and concept must tell a story and evoke their emotions. • When you are new to this business and have very limited funds, the above tips may be hard to figure out. Experiment with a few styles, and do your initial marketing through FB, Instagram, and email and forum sites (be an active contributor before you start to insert your ad. Otherwise, it will get removed, and you'll get a bad reputation!) • These are just some examples to help you get started. Good luck!

26. Thank You Resource:https://toughnickel.com/starting-business/How-to-Start-Online-Business-in-Malaysia