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An Express Journey – Starting a Courier Services Company in Malaysia
A definitive read from 3E Accounting on what you need to know before starting a courier services company in Malaysia.
The global rise of the Courier, Express and Parcel (CEP) market has ushered in a new era of business. The shift to e-commerce has been impelled by market drivers like higher smartphone adoption and growth of small and medium enterprises. This industry is spotlighted for steady growth and starting a courier services company in Malaysia is a great way to garner market share.
An Express Package
Malaysia has enjoyed the benefits of its strategic location as the centre of commerce in Southeast Asia. A bustling economy and business environment make it an ideal place for new ventures. Before starting a courier services company in Malaysia, consider the following:
- Due Diligence – research the area and clientele you wish to service; check out the competition
- Business Plan – list your business strategy and model; detail the financial plan, cash flow and pricing structure
- Choose a Name / Logo – pick a creative name and design a logo that reflects your business
- Company Incorporation – choose your business structure and register your company
The legal structure of your business can include:
- Sole Proprietorship
- Partnership or Limited Liability Partnership (LLP)
- Private or Public Limited Company (Sdn. Bhd. Or Berhad)
- Companies limited by guarantee
After incorporation, you will need to register with the Inland Revenue Board of Malaysia (LHDN). Next, get a corporate bank account, apply for a loan and most importantly, get business insurance. This is essential as lost, stolen, or damaged goods, as well as injury to employees, are high-risk factors.
Look into inventory as your business at some point will need storage space for goods. If you are also looking at office space, 3E Accounting can help source the most ideal serviced premises to rent. These provide an ‘instant office’ that will save time, money and resources.
The Malaysian Communication and Multimedia Commission (MCMC) regulates and licenses postal and courier services in Malaysia. Your business will need a Non-Universal Service License, which consists of three types:
- Licence A – for domestic and international inbound/outbound service
- Licence B – for domestic and international inbound service only
- Licence C – for intra-state domestic service
Under the Postal Services Act, courier services cover all forms of transportation done in the service of conveying goods from one place to another. Whether you buy, rent or hire purchase your vehicles, a variety of licenses and permits are in order. These include:
- Operator and vehicle licences from the Land Public Transport Commission (SPAD)
- Commercial vehicles need to pass inspection by PUSPAKOM
- Drivers will need to get a Goods Driving License from the Road Transport Department (JPJ)
Other pertinent issues that need to be addressed include:
- Invest in People – employees need to be registered with Employee Providence Fund (EPF), Social Security
- Organisation (SOCSO), etc
- Get Equipment – smartphones, GPS, office supplies, etc
- Get a Website – hire professionals like 3E Accounting to set up an excellent website
- Start Marketing – leverage your brand on social media platforms such as Facebook, etc.
Starting a courier services company in Malaysia offers bright prospects for the discerning business investor. 3E Accounting has a range of carefully selected solutions for all your business and commerce concerns. Whatever it is your business needs, 3E Accounting is here to deliver professional results.
Contact 3E Accounting today for some clear insights on viable business solutions.