Do you need to register with SSM to sell online
You are about to start selling online, and someone has told you that you need SSM first. Someone else has told you that you do not, because it is only online. You want one clear answer before you spend any money.
The short answer: if you are selling to make a profit and you mean to keep doing it, yes. Selling online is still running a business. This is general information, not legal advice.
What SSM asks for
SSM is the Companies Commission of Malaysia. For a sole proprietor or a partnership, its guidelines say this.
- When. Register no later than 30 days from the day the business starts.
- Who. The owner must be a Malaysian citizen or permanent resident, aged 18 or older.
- What it costs. RM 30 a year if the business uses your own name as it appears on your identity card. RM 60 a year if it uses a trade name.
- How long. You can register for one year, or up to five years at once.
Registration is done online through SSM's EzBiz portal, and you need a verified EzBiz account first. SSM also waives the fee for some people, including B40 entrepreneurs, full time students and registered OKU. Fees, waivers and rules change, so read the current ones on ssm.com.my before you pay.
Does selling online change anything
No. The rule is about carrying on a business, not about where the buyer finds you. A shop lot and a link in your profile are treated the same way. The law has a short list of exempt occupations, so check it if you think one applies to you.
The law on business registration carries penalties for running a business that is not registered. That is the reason to settle this early and not after a year of orders.
What if I am only testing
You may only be testing. A few items sold to friends, to see if anyone wants them.
The 30 days count from when the business starts. The law's definition is an activity carried on for gain. Selling to make a profit, and meaning to continue, fits it. Selling your own used things once is a different case.
If you are not sure, ask SSM.
Your own name or a trade name
Your own name costs less. It suits you if you are the brand and do not mind your full name on the certificate.
A trade name is the one buyers see. If your store is called something other than your name, register that. Check that the name is available first. Decide on the name before you print anything.
Sabah and Sarawak
Business registration there runs under different rules and through local offices. Check with the authority in your area.
What registering gets you
- A business bank account. Banks generally ask for the registration to open one, and it keeps business money apart from your own.
- Something to show. Suppliers, event organisers and some buyers may ask for a registration number.
- One less thing to worry about. You will not have to come back and fix it after you are busy.
What it does not cover
Registering with SSM is one step. Some products need their own approval before they can be sold, such as cosmetics, health products and some food. If you sell anything a person eats, drinks or puts on their skin, find out what applies before you list it.
Tax is a separate matter too. Business income is taxable income. Check with LHDN what you need to file.
Where this leaves you
You do not need SSM to set up a store and see how it looks. You do need it once you are in business. The fee is RM 30 or RM 60 a year, so it is easier to do both in the same week than to come back to it.
Start your store at berkedai.com