Do You Need to an E-commerce License For Your Online Business in Malaysia? #ECxFAQ

In today’s edition of #ECxFAQ, I will answer one of the most commonly asked questions about starting an online business in Malaysia:

“Do I need to have an e-commerce license?”

The short answer is yes, you do.

As long as you make money with your business – whether online or offline – you will need to register it with SSM. 

If you don’t, your business is considered illegal and you may face a hefty fine. There are no exceptions.

This applies whether you are running an e-commerce business, selling services online, or running a dropship business, you will need to register your business.

Find out more about starting an online business and its legal requirements in my online business guide.

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20 Comments

  1. Hi, I would like to get some advice from you. I am a 18 years old student, I want to make money through online and I found drop shipping, my questions are:
    1. what does it need to start drop shipping?
    2. Do I need credit card to start a online business like drop shipping?
    3. Do you recommend students like me to start online business? If so, where should I start?

    Hope to hear from you very soon!Thanks

  2. Hi, I would like to know whether do I need to get any e-commerce food license for selling health food online? If so, which authority department in charge?

    Hope to receive your reply soon. Thank you.

    • Hey Sheriling,

      There is no special e-commerce license for now in Malaysia. Just look at your business like a conventional business – so whether you sell online or offline, you first need to register your business. I’m not sure what kind of health food you are selling, but usually it will be under KKM.

      Hope this helps 🙂

      – Lu Wee

  3. Hello Lu Wee Tang,
    I am a 18 year old in Sabah, I plan to sell on a online platform Shopee and Etsy. Do I need a online business license? How much will it cost? I dont know much about the validity and legal stuff when opening a online shop. If can please reply me yyon500@gmail.com

    • Hi Yonie,

      Legally, you’ll want to at least set up a sole prop. This usually costs RM60. But you’ll need to have a business address. I think you have virtual addresses in Sabah too? These can start as low as RM99/year.

      Hope this helps!

  4. Hi Ms. Lu,

    Let say i wanted to sell things using my car. Like driving around to sell things and keep the item stock in my car. Do i need any permit / license for that?

    • Hi Grace,

      Is this something you see yourself doing long-term? E.g. today sell using your car… next time, have a shop etc? If so, I’d recommend registering your business with SSM. If it’s just a hobby, no need.

  5. Hi,

    Hope you can assist me.

    I am currently started to sell women accessories online through Facebook and IG and also website.

    Wonder beside register SSM do I need to apply any license with the local council ? Such as mbpp.

    Thank you in advance hear from you soon.

    Regards,
    lim

  6. Hi
    Ms lu wee tang

    Ms i am from pakistan and i want a license is E-commerce.
    Please give me details and requirements .

    Thank you

    From
    Shah

    • Since you are from Pakistan it may be better and also easily available but checking on google. I think a great help like this is being abused and spoilt by kind-hearted people offering advice. When I started, we didn’t have what you have. Google was there but not as easy as today to even generate the policies. All of you have a Facebook account right. I know some even more than one. if you google on privacy and data and global requirements, Facebook is sure to pop up, and why I say this is because they have a generator where you put your information and it emails you a professional law-abiding policy. They also explain what is what.
      Is anybody aware of what an Impressum is? Go ask Facebook, from there you will also get to the generator…. Typical when someone offers information and is stepped on and wants information available. It’s different if it’s not available but in today’s world…. I can even find out what you had for lunch… What I really want you all to get is that stop acting like spoilt kids. You want to run a business but you don’t want to find out but to be spoon-fed? That doesn’t at all give me the confidence to shop at your outlet. Who knows how you got your products or if you are even displaying its description correctly.

  7. Well said as there is nothing else to do…. else don’t talk or think. just don’t and your case wanting is to just do

  8. Hi
    I am a foreigner living out of Malaysia. Want to sell my consumer goods online through. e-commerce and socio-commerce sites in Malaysia. Plan to appointment some associate for drop shipping.

    Can you please advise the legal process to do so.

    Thanks and regards

  9. Hello I am a student and I want to open online business and start Selling products so it okay in Malaysia or it illegal

  10. Hi,
    I’m planning to start a business online to sell pastry desserts on Instagram do I need to have to register anything ?
    Hope to hear from you soon, Thanks!

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