How to avoid being fined RM50,000 for selling onlinealmost 3 years ago DenningMR
Online businesses must be registered
SSM chairman Datuk Seri Alias Ahmad said many online entrepreneurs have not registered their businesses, with only 30,000 having done so between 2012 and Sunday.
“We have taken legal action against 478 online individual businesses and online companies last year.” – The Star, 26th January 2016.
So all you online businesses out there, you need to register yourselves with the authorities.
Namely, with the Companies Commission of Malaysia also known as Suruhanjaya Syarikat Malaysia (SSM)
What is a business?
"business" includes every form of trade, commerce, craftsmanship, calling, profession., or other activity carried on for the purposes of gain:
This is provided by Section 2 of the Registration of Businesses Act 1957
However, please note that the Registration of Businesses Act 1957 DOES NOT APPLY to Sabah & Sarawak. There is a different set of legislation for East Malaysia.
Who is SSM?
SSM governs the registration of businesses and companies in Malaysia.
Why must we register?
Well, Section 12 (1) of the Registration of Businesses Act 1957 states that all businesses MUST be registered.
Failing which it is an offence.
Register as what?
Sole proprietor – means you run the business on your own without any legally recognised partners. You are the only person who will be responsible for the business liabilities. Registration is RM30 only, if the business is in your name or RM60 if the business is not in your own name.
Partnership – this means there is more than one person who legally owns the business. All partners are legally bound for any of the business liabilities. Registration of a partnership is RM60.
Company – a company is a separate legal entity. It’s akin to a person. The company is liable and not always the shareholders. There is more to do in setting up a company as the provisions of the Companies Act 1965 will apply.
SSM Table Of Fees - sole proprietor or partnership
Just follow this guide provided by SSM.
Picture credit: thestar.com.my
Where can you register?
Registration can be done at any SSM counter throughout Malaysia. Here is a list of their offices.
Happy registering and don’t forget to pay your taxes!