How to Start A Courier Business in Malaysia in 2024

Are you wondering how to start a courier business in Malaysia? If yes, we have the perfect answer to your question.

But first, let’s understand why should you start a courier service company in Malaysia. According to Statista, e-commerce market users in Malaysia are expected to grow from 2024 to 2028, with an estimated increase of 7.6 million users, or approximately 34.94%.

This number shows that the demand for courier services in Malaysia is undoubtedly high. Hence, you can take position this opportunity by starting a courier business.

In this article, we will discuss the steps on how to start a courier business in Malaysia 2024 so that you get an idea of the opportunities of the business.

12 Steps How to Start A Courier Business in Malaysia

With a wide selection of online shopping platforms available, people are increasingly relying on the Internet to shop for basic necessities such as groceries and household items. 

Since more and more merchants and restaurants are choosing delivery services to attract customers, the need for a courier business has also increased. 

This situation makes it the perfect time to start a courier business in Tanah Melayu. Here are 9 steps on how to start a courier business in Malaysia you should follow:

1. Do Market Research

Before starting a courier business in Malaysia, it's important to do some market research. This means gathering information about other courier companies, who their customers are, and how much demand there is for courier services.

By doing this research, you can figure out how to make your business stand out and attract customers. It also helps you plan things like how much to charge and how to advertise your services.

Market research helps you understand the market better so you can make smarter decisions when starting your courier business in this country.

2. Decide Your Business Types

In Malaysia, there are various types of business entities, each with its own set of compliance requirements and tax structures. 

• Local entrepreneur: The common options include registering as a Sole Proprietor, Limited Liability Partnership (LLP), General Partnership, or Company.
• Foreign entrepreneurs: Normally, foreign entrepreneurs choose between a locally incorporated company or a foreign-owned company. 

Foreign investors may establish a sole proprietorship or partnership if they hold permanent residency in Malaysia.

Additionally, foreign investors have the option to register as a private limited company, Labuan company, or representative office.
 

3. Register Your Business Name

It is essential to choose an appropriate name before launching your business. Ensure that the name you choose is distinctive, memorable, and not similar to an already registered business name.

Moreover, the business name you choose must comply with the regulations outlined by the Companies Commission of Malaysia (SSM). If the name is available, you will need to register it with the SSM and pay a fee of RM30.00 for each name.
 

4. Register Your Business

Starting a business in Malaysia, whether you're a foreigner or a local, requires several incorporation documents to be submitted to the Companies Commission of Malaysia (SSM).

These documents include:

• The Memorandum and Articles of Association/Constitution
• Statutory Declaration by a Director or Promoter Before Appointment
• Declaration of Compliance
• The identity card of every director and company secretary (one copy each)
• The business name's approval letter from SSM (one copy).

The registration fee and processing time vary based on the chosen business structure and whether registration is done online or in person.

5. Decide The Courier Services

Before starting a courier company, you must determine what kind of services you want to offer to Malaysians. There are several types of courier services in Malaysia, such as:

• Express Delivery: This service includes gathering, organizing, and moving packages to the nearest depot to the delivery area. From there, the packages are loaded onto a van and transported to the final destination. This method typically takes a few days and is usually the most economical option among courier services.
• Same-Day Delivery: This service is pricier compared to other options, but they are commonly chosen for urgent shipments.
• Worldwide Delivery: This service is utilized for shipping goods to or from abroad, with pricing varying based on package size and delivery speed.
• Pallet Courier Service: This service is employed for transporting heavier items on pallets, offering reliable delivery schedules at a reasonable cost.

You can consider these options to determine the type of services you wish to offer and establish your courier business. Although you can focus on a single service, providing a variety of services can enhance the appeal of your brand and courier business to customers.

6. Get a Driving License

How to start your courier business in Malaysia? You'll surely need to apply for a courier service license in your local area.

In Malaysia, there are two types of licenses available: the Universal Service Licence, which is valid for 20 years, and the Non-Universal Service Licence, which is valid for only 3 years.

There are 3 types of non-universal licenses, including:

• License A allows you to provide courier services both internationally and locally within Malaysia.
• License B allows you to provide courier services from international sources and within Malaysia.
• License C allows you to provide courier services within different states of Malaysia.

The cost of these license applications ranges from 100 MYR to 30,000 MYR and it’s depending on the requirements.

Don't forget to prepare the necessary documents for the license application. Here are some documents to apply for your license:

• Application details.
• A formal statement made by the board members and the CEO of the application.
• Business plan.
• Financial report.
• Proof of license payment.
• Documents or other information required by the commission.
   

7. Purchase Vehicles

Now that you've completed the registration process and sorted out all the legal paperwork for your courier business, it's time to focus on the practical aspects.

Every courier business needs vehicles for transportation. Whether it's trucks, delivery vans, or motorbikes, you'll need reliable transportation to move items from your warehouse to your customers.

Take some time to research and familiarize yourself with the latest reviews and trusted vehicle models available in the market.

If you don't have the funds to invest in purchasing vehicles outright, don't worry. There are alternative options available, such as renting vehicles. Rather than spending a large sum of money upfront, you can explore rental services that offer flexible deals to suit your needs.

8. Get Insurance

The next step when you are building a courier service company in Malaysia is to ensure your courier business is protected with the right insurance coverage in case of accidents is equally important.

To prevent any potential issues, it's essential to choose the appropriate insurance for the specific courier services you provide. On a smaller scale, you'll also need to consider insuring:

• Your drivers or staff members.
• The vehicles.
• The cargo and items being transported.
• Business equipment used for transportation.
   

9. Set The Services and Prices

Before starting a courier company, it's crucial to establish a clear pricing plan and determine pickup and delivery coverage.

If you're unsure about pricing, take a quick look at what your competitors are charging to get an idea. Understand their average rates and any additional fees they may include.

When setting your prices, factor in all expenses, including operational costs, insurance premiums, fuel, and shipping materials.

These elements will influence your pricing strategy. Consider offering special rates or discounts as incentives to attract new customers, especially since you're just starting.

Once your pricing plan is finalized, make sure to communicate it to your customers in a transparent manner.
 

10. Set an Advertisement

To ensure your courier business thrives, it's crucial to market it effectively. This involves utilizing both traditional and digital marketing strategies to boost brand visibility.

Traditional methods like print, TV, and radio ads can be combined with digital approaches such as Facebook ads, Google Search, and SEO.

Consistency is key when establishing your brand identity. Hence, you need to maintain a cohesive message across your tagline and logo design. Your tagline should be concise and memorable, while your logo should accurately represent your brand.

Having a website is essential for any digital-based business. To support it, you need to ensure that your website contains SEO-friendly content and is user-friendly, by providing customers with all the necessary information before making a purchase.

In addition, don't forget to secure a domain name to establish your online presence!

11. Hire Your Team

When starting a courier business in Malaysia, one crucial step is to assemble your team. Your team will play a significant role in the success of your business, so it's essential to choose the right individuals for the job.

It depends on the size and scope of your operations, you may need to hire delivery drivers, administrative staff, customer service representatives, and warehouse personnel. 

You can look for candidates who are reliable, responsible, and have experience relevant to their roles. You can also conduct thorough interviews and background checks to ensure you're selecting the best candidates for your team. 

By building a competent and dedicated team, you can ensure smooth operations and provide excellent service to your customers.
 

12. Open for Feedback from Customers

Feedback from customers provides invaluable insights into their needs, preferences, and overall satisfaction with your courier services, especially when considering how to start a courier business in Malaysia.

By actively seeking and incorporating customer feedback into your business operations, you can identify areas for improvement, refine your services, and ultimately enhance customer satisfaction.

Whether through surveys, reviews, or direct communication, you need to encourage customers to share their thoughts and experiences with your courier business.

By listening attentively to your customers and responding proactively to their feedback, you can cultivate stronger relationships, build trust, and position your courier business for long-term success.

Those are the 9 steps on how to start a courier business in Malaysia so that you get an insight into the prospects of the business.

The important thing to remember is that in starting a courier business you need to develop a marketing strategy so that your courier business can grow.

The most effective way to get your business recognized is by implementing SEO on your business website. Apart from the low cost, SEO can increase your brand’s online presence, and even increase its sales.

To prove it, try SEO Services by cmlabs and see how your business website traffic grows!