Homepreneur – Set Up a Home-based Business in Malaysia
Work right, work smart, work safely. Set up a home-based business in Malaysia with these great tips from 3E Accounting.
The global pandemic has brought about an accelerated digital transformation the world over. Leading the pack in Southeast Asia, with 83% of its population becoming digital consumers, is Malaysia. This impact of digital assimilation on commerce has been to encourage the growth of home-based entrepreneurial businesses. As the new norm takes hold, it’s time to settle in and set up a home-based business in Malaysia.
Business Begins at Home
Traditional home-based businesses have been around for a while now. They range from babysitting to home-made cakes to accounting services and music lessons. However, as working from home is now the new norm, it is not surprising that some novel ideas have surfaced. Some of these include:
- Dropshipping, affiliate marketing and other online e-commerce business.
- Care services including elder care and pet care.
- Online content creating and learning portals.
- Marketing and consultancy services.
- Freelances such as content writing, graphic design as well as website design and development.
Once you know what you want to do, it’s best to get your business plan together. Write and plan out your mission vision as well as a financial forecast and cash flow. You will also need to sort out space in your home that can be dedicated to your business activity. You will also need to invest in the necessary fit-out, such as good internet speed, laptop, materials, etc.
It is advisable to register and incorporate your company in order to set up a home-based business in Malaysia. The Company Commission of Malaysia (CCM) or Suruhanjaya Syarikat Malaysia (SSM) online portal allows the incorporation of the following structures:
- Sole Proprietorship
- Partnership or Limited Liability Partnership (LLP)
- Private or Public Limited Company (Sdn. Bhd. Or Berhad)
- Companies limited by guarantee
For a home-based business, a sole proprietorship or LLP is the vehicle of choice due to ease of setting up. Another popular option is Sdn. Bhd which has separate legal entity status. This affords shareholders more protection as they have limited liability.
After incorporation, registration with the Inland Revenue Board of Malaysia (LHDN) is recommended especially for Sales Tax license. Most other regulations for home-based businesses in Malaysia are still ambiguous. Therefore, it can be a little tricky knowing which licenses to apply for. All Malaysian businesses are, however, encouraged to apply for the proper permits. Business consultants such as 3E Accounting can assist in ensuring the right approvals are obtained.
Generally, for small businesses, licenses can be applied for from the Ministry Of Entrepreneur Development’s BLESS licensing portal or Pihak Berkuasa Melesen (PBM). It should be noted that licensing is specific to the location. Approvals are issued by statutory bodies or agencies from either the Federal Government and or State authorities. License categories include:
- Industry or sector-specific
- Activity specific
Depending on the nature of your business, some of the license and permits may include:
- Broadcasting, communications or e-commerce license from the Malaysian Communications and Multimedia Commission (MCMC)
- Halal Certifications, Food Handling Permits, Health & Safety Permit from the Halal Certification Body (JAKIM) and the Ministry of Health (MOH)
A Solid Base for Success
It is undeniable that strategic business partnerships are a boon to small businesses. Industry professionals such as 3E Accounting will give you the opportunity to set up a home-based business in Malaysia effortlessly. 3E Accounting offers essential services as well as practical options to all your business start-up needs.
Contact 3E Accounting today for that vital collaboration towards successful business solutions.