3 Steps For A Successful Online Business In Malaysia
Looking to start an online business, but don’t quite know where to begin? Or already running an online business, but want to take it up a notch? Here are some tips on how to have a successful online business in Malaysia for 2016.
Make It Legal
If you think online businesses don’t need to be registered, you may want to think again. Malaysian law requires all businesses to be registered, even those which sell products through online platforms such as blogs, Facebook and Instagram. Failing to do so would mean committing an offence under the Registration of Businesses Act 1956. If found guilty, the maximum fine is a hefty RM50,000 or jail of up to two years.
To register your business, visit the Headquarters or state office of Suruhanjaya Syarikat Malaysia (SSM), and your Business Registration Certificate can then be obtained within one hour from the time of payment!
Type Of Business Registration
E.g; The Smile Shop
|RM60 per year|
Personal Name (as per in I/C)
E.g. Goh Teo Heng
|RM30 per year|
The general rule is to register your business no later than thirty days from the commencement date of the business. Each registration can be made for a period of one year and not more than five years. Try to have up to 5 name options for your business when you fill in the form at SSM.
Another benefit of registering your online business is that you can gain access to microloans as well as insurance. So if you haven’t registered yet, time to get on it and don’t forget to run a quick check across social media platforms to see if the name is still available!
Manage Your Finances
Taking time to organise will work wonders for your online business. And by that, we mean keeping track of and reviewing your finances. Yes, bookkeeping is usually a universal point of pain for entrepreneurs but it is highly recommended to help your business achieve success.
Thanks to technology, you can now go paperless and manage your finances on the go, all for a relatively small fee. There’s Ucounting as well as Treezsoft which are both based in Malaysia. Both are online accounting and business management tools to help you keep track of your business everywhere you go. Eventually when your business grows bigger, you should consider getting an accountant to do the bookkeeping for you.
Invest To Make More Money
To propel your online business further, ideally you should re-evaluate it from time to time. Following that, you may want to expand, which in turn requires you to source for more capital to grow your business. If you’re short of funds, consider taking a loan from a bank or apply for government funding and grants.
When it comes to bank loans, you need to carefully weigh out your options carefully by comparing the different types of loans available. Do you want a business loan or a personal loan? What are the interest rates like? How much can you get from the bank? You can also learn more about loans and compare them at sites like CompareHero.my, free of charge.
As for government funding and grants there’s the Young Entrepreneurs Fund and the Intellectual Property Financing Fund. For Bumiputera, there’s the Skim Usahawan Permulaan Bumiputera which was recently announced in the Budget 2016.
Aside from that, there is also the TEKUN loan for Bumiputera and Indians that provides loans of up to RM100,000. For those who are working on information technology related projects, you may be able to secure funding from Multimedia Development Corporation (MDeC). In short, make sure you’re registered, keep track of your finances and invest in your goals. The sky’s the limit for your online business!