How to Start an Online Business in Malaysia: 2024 Guide

The advancement of technology frequently makes life easier, even when it comes to starting a business. A lot of people, particularly in Malaysia, opt to establish an online business as a result of the technology's exponential expansion. 

If you plan to launch a business online, then knowing how to start an online business in Malaysia is a must. 

Starting an online business in Malaysia can be profitable since a sector like e-commerce has experienced rapid expansion. In 2022, its market expanded by 20%.

Furthermore, according to the Companies Commission of Malaysia, there were more than 51K corporations, 321K enterprises, and 3K Limited Liability Partnerships registered with the commission in 2023.

Thus, if you're interested in working remotely, starting an online business in Malaysia might be an excellent opportunity for you.

This guide will lead you to how to start a business in Malaysia, from the documents you should prepare, the steps you should take, as well as the most effective strategies for online business.

How to Start an Online Business in Malaysia

Some of you perhaps have decided what online business you should start in Malaysia. However, to be able to run your business well, you must understand how to start an online business in Malaysia. 

Below are the steps of how to start an online business in Malaysia you should take note of. 

1. Construct a Business Plan 

The first step of how to start an online business in Malaysia is to create a business plan. After knowing what business you will start, you must research the market and demand, analyse the marketing strategy, organise the financial strategy, and so on. 

A detailed business plan can help you to foresee your profit in the future. 

2. Select a Business and Domain Name

The next step in how to start an online business in Malaysia is to determine the name. 

A business name is one of the crucial things to decide because it will be your branding. Yet, since you will be working online, selecting domain names for your website is also important. 

In determining business and domain names, you have to ensure that the names are available for registration. 

After that, you can choose the domain extensions, such as .com, .co, .net, and so on.

3. Register Your Business

Before registering your online business in Malaysia, you have to decide on a legal structure, even though you are working by yourself.

For your information, in Malaysia, online companies must register themselves to the commission, particularly if they fulfil specific requirements. 

Depending on the type of business, the goods or services provided, and the money made, different registration requirements may apply.

To help you consider what kind of business structure you should choose, here are some details you can learn:

• Company: If you intend to run it as a separate legal organisation, you must register your online business with the Companies Commission of Malaysia (CCM) following the Companies Act of 2016. 
• Sole Proprietorship or Partnership: Sole proprietorship is suitable for those who start a business individually. In contrast, if you work with one or more partners, you can go with a partnership. Regarding this, you must register your business with the Companies Commission of Malaysia (CCM).

In addition to business structure, you must pay attention to your business scope since different fields register with different departments. 

To understand more, let’s take a look at the explanation below:

Malaysian Communications and Multimedia Commission (MCMC)

You must register your online business to MCMC if your company operates in telecommunication services. You are required to fill out some forms and prepare for registration fees. 

Companies Commission of Malaysia (CCM)

As mentioned above, some business structures need to register themselves with CCM. To do so, you must fill out some forms within 30 days from the date of business start.

Moreover, you need to prepare for some fees, such as RM 60.00/year for a trade name, RM 30.00/year for a personal name, and RM 5.00/year for a branch. 

Inland Revenue Board Malaysia (IRBM)

If you plan to open an e-commerce business, you must register your business with IRBM and submit an annual tax return with the agency. 

4. Get Licences and Permits

Another thing you should consider in how to start an online business in Malaysia steps is to get licences and permits. 

Even though not all businesses require you to obtain one, some businesses like product selling need particular licences from the authorities to maintain their credibility. 
 

5. Open a Business Bank Account

The next step in how to start an online business in Malaysia is to open a business bank account. This is necessary because you can separate your business assets from your personal assets. 

With that, when there is a problem in your business causing liabilities, it will not affect your personal financial condition. 

Opening a business bank account is also crucial for partnership business in which you work with several people and share the account with them.

6. Choose the Payment Gateway

Since you sell products and services online, having a payment gateway is an online business strategy you must consider. 

In choosing one, you should pay attention to several factors, including:

• Total costs (set-up fee, transaction fee, and monthly fee).
• Cards that can be used (Mastercard, Visa, or other types of cards).
• Holding period. 
• Currency choices for the payments.
• Recurring billing. 
• Security. 
• Limit of transactions.
• Hosted or non-hosted system. 
• Integration with other systems. 

7. Build a Website

Last but not least, since you run an online business in Malaysia, owning a website is a must. 

A new online business needs a quality website to build credibility, draw potential clients, and offer a platform for showcasing goods and services at all times.

Yet, is it all? Of course not. After building a website, you must do some strategies to boost your online presence, so that your potential clients can find your business. 

To do so, you can consider SEO. Not only is it accessible and cost-effective, but SEO also helps you to increase your internet profile and draw in more prospective clients.

Additionally, you may target potential clients with pertinent keywords and increase website traffic as well as income by producing excellent search-engine-optimised content.

To see how we can help you use relevant keywords to boost your listings, content, and website, try our SEO Services now!