How to start an online business in Malaysia (2026 guide)

Key Takeaways:

• You need to register your online business with SSM before you start selling. Sole proprietors can do it online in 1–2 working days for as little as RM30 per year.

• Your choice of payment gateway and business account affects how much of every sale you keep, so choose wisely.

• Airwallex offers a business account, payment gateway, and corporate cards in one platform. You can apply for this online, with no branch visits required.

If you're looking at how to start an online business in Malaysia, it’s good timing — internet penetration is high, local platforms like Shopee and TikTok Shop give you instant access to millions of buyers, and the cost of getting started is lower than it used to be.

Most guides on starting a business in Malaysia cover the basics, including SSM registration, picking a platform, running some ads.

This one goes further. We'll walk you through every step, including the financial infrastructure most articles overlook: payment gateways, business accounts, and how to handle currency if you're selling internationally or running paid ads.

Step 1: Choose your online business model

Before you register anything or buy a domain, you need to know what kind of business you're building. Your model affects everything, including your legal structure, your platform, your financial setup, and how you'll get paid.

Here are the four most common models for online businesses in Malaysia:

1. eCommerce (product-based)

With eCommerce businesses, you sell physical products online, either through your own website or a marketplace.

Products can be self-manufactured, sourced from local suppliers, or imported. Some sellers use dropshipping or print-on-demand, which means you don't hold any inventory — a supplier ships directly to your customer.

This model works well on Shopee, Lazada, and TikTok Shop for local reach. If you plan to sell to buyers outside Malaysia, you'll need a payment setup that can handle foreign currency.

2. Service-based businesses

With this type of business, you sell your skills or expertise. This includes freelance writing, graphic design, digital marketing, web development, accounting, and consulting.

You can work with Malaysian clients or international ones — and with international clients comes international payments, often in USD or other major currencies.

3. Digital products and content

With digital products, you create and sell things that don't need to be shipped: e-books, online courses, templates, stock photos, or software.

This model has low overhead and global reach from day one. Platforms like Teachable, Gumroad, or your own website can handle delivery automatically.

4. Marketplace selling

With marketplace selling, you list products on established platforms (Shopee, Lazada, TikTok Shop) without needing your own website. It's the fastest way to start selling, and these platforms handle payments and often logistics too.

The trade-off is lower margins, more competition, and limited control over your brand and customer data.

Step 2: Register your online business in Malaysia

Before you sell anything, you need to register your business with the Suruhanjaya Syarikat Malaysia (SSM), the Companies Commission of Malaysia.

This is a legal requirement under the Registration of Businesses Act 1956. Skipping it exposes you to fines and makes it harder to open a business bank account or apply for payment gateways.

Types of business structures in Malaysia

There are three main structures for online businesses in Malaysia. Here’s a quick overview:

The information in this table has been reviewed to be accurate as of 27 April 2026.

Sole Proprietorship or Partnership

Sole proprietorships are the fastest and cheapest structure to set up, but only Malaysian citizens and permanent residents can apply. Partnerships follow the same process but involve two or more people.

Neither structure separates your personal and business liability, meaning your personal assets are at risk if the business runs into legal or financial trouble.

Private Limited Company (Sdn Bhd)

An Sdn Bhd is a separate legal entity, which limits your personal liability and allows for foreign ownership, provided a resident director is appointed.

It costs more to set up and requires more ongoing compliance, but it's the right choice if you plan to raise investment, bring in foreign co-founders, or build a scalable business.

How to register with SSM

For sole proprietorships and partnerships, you can register online through SSM's ezBiz portal at ezbiz.ssm.com.my. Here are the steps:

1. Create an account on the ezBiz portal using your MyKad number

2. Search for and select your business name (if registering under a trade name)

3. Select your business activity using the Malaysian Standard Industrial Classification (MSIC) code — this determines your business category

4. Upload the required documents (identity card, supporting documents if applicable)

5. Pay the registration fee online — RM30¹ per year for a personal name or RM60¹ per year for a trade name

6. Download your SSM business registration certificate, usually issued within 1–2 working days

For an Sdn Bhd, you register through SSM's MyCoID portal. You'll need a company secretary to assist with the constitution and director filings. Approval timelines vary.

Other licences you may need

Depending on what you sell, you may need additional permits:

• Wholesale and Retail Trade (WRT) licence: Required for foreign-owned businesses in wholesale and retail, including online retail. Applied through the Ministry of Domestic Trade and Cost of Living (KPDNHEP).

• Food safety certification: If you sell food products, you'll need approval from the Ministry of Health or local council.

• NPRA notification: Required if you sell cosmetics, skincare, or health supplements. The National Pharmaceutical Regulatory Agency (NPRA) under the Ministry of Health requires product notifications before you can sell legally.

• Import/export permits: Required for certain controlled goods under the Customs Act. Check with the Royal Malaysian Customs Department (RMCD).

If you're only selling general merchandise online to Malaysian buyers, a basic SSM registration is typically sufficient to start.

Step 3: Know your tax and legal obligations

Tax compliance is not the most exciting part of starting an online business, but ignoring it early can create serious problems later. Here is what you need to know:

Register with the Inland Revenue Board of Malaysia (LHDN)

Once you start earning business income, register for a tax file number with the Inland Revenue Board of Malaysia (LHDN) at hasil.gov.my.

For sole proprietors and partnerships, business income is taxed under your personal income tax. For an Sdn Bhd, the company files and pays corporate tax separately.

Sales and Service Tax (SST)

You only need to register for SST once your annual revenue from taxable goods or services exceeds RM500,000². At that point, you collect SST from customers and file returns every two months with the Royal Malaysian Customs Department.

If you're just starting out, you're unlikely to hit this threshold immediately — but track your revenue from day one so you know when you're approaching it.

E-invoicing

Malaysia is rolling out a mandatory e-invoicing system under LHDN. Businesses are required to issue validated digital invoices through the MyInvois portal, covering transactions with other businesses, consumers, and the government. Implementation is being phased in by annual turnover. Check your timeline and obligations at hasil.gov.my.

Step 4: Set up your online presence

Once your business is registered, you need somewhere to sell. The platform you choose shapes how much control you have over your brand, your customer relationships, and your margins.

Your own website vs a marketplace

There is no single right answer here — it depends on where you are in your business journey.

Marketplaces like Shopee, Lazada, and TikTok Shop give you instant access to a large pool of buyers without needing to build an audience from scratch. They handle payments and, in many cases, logistics too.

The trade-off is that you pay platform fees on every sale, compete directly with other sellers on price, and have limited visibility into who your customers actually are.

Your own website gives you full control — over your branding, your pricing, your customer data, and your margins. You are not competing on the same page as your rivals.

The challenge is that you need to drive your own traffic through search, social media, or paid ads. Popular website platforms used by Malaysian businesses include Shopify, WooCommerce, and EasyStore, which offers local payment integrations and Bahasa Malaysia support.

Many online businesses in Malaysia do both: use a marketplace to generate early sales and build volume, then invest in their own website as they grow.

Set up your domain and business profiles

If you are building your own site, register a domain name that matches your business name. A .com.my or .my domain signals local credibility to Malaysian buyers. You can register one through MYNIC-accredited registrars such as Exabytes or Shinjiru.

Beyond your website, set up a Google Business Profile so your business appears in local search results, and a WhatsApp Business account for customer communication. Both are free and widely used by Malaysian consumers.

Step 5: Set up your payment gateway

A payment gateway is what allows you to accept payments from customers at checkout. It directly affects your conversion rate, your customer experience, and how much you keep from each sale.

Choose a payment gateway that supports how Malaysians pay

Malaysian customers don’t rely on cards alone. Most expect options like FPX, DuitNow QR, and e-wallets such as GrabPay and Touch ’n Go.

If your checkout only supports card payments, you are likely to lose customers before they complete their purchase.

At a minimum, your payment gateway should support:

• FPX

• E-wallets like GrabPay and Touch 'n Go

• DuitNow QR

• Cards (Visa, Mastercard)

If you plan to sell internationally, you should also look for support for foreign currencies and international payment methods.

Compare fees carefully

Payment gateways charge a fee on every transaction, and the differences can be significant over time.

In Malaysia, card payments typically cost more than FPX, while e-wallets fall somewhere in between. Some providers also charge fixed fees per transaction or annual subscription fees.

Here is a comparison of common options:

The information in this table has been reviewed to be accurate as of 27 April 2026.

A few things are worth noting here:

FPX is the most commonly used online payment method in Malaysia, so the FPX rate matters more than many sellers realise. On RM50,000 in monthly FPX volume, the difference between a 1.4% rate and a 3% rate works out to about RM800 per month.

Some providers also charge an annual subscription fee on top of transaction fees. If your monthly volume is low, that fixed cost adds up. Platforms with no annual fee are simpler to budget for early on.

iPay88 and eGHL — now under the ADAPTIS brand — do not publish their rates online. They are well-established in Malaysia and worth contacting for a quote if you are processing high volumes, as rates may be negotiable.

Step 6: Set up your business bank account

Once you start accepting payments, you need a place for that money to go. Most payment gateways require a business bank account before they approve your application, and keeping business and personal finances separate makes tax filing and tracking much easier.

When a traditional business account works

If your business operates entirely in Malaysia — you sell in MYR, pay local suppliers, and keep expenses in ringgit — a standard business account with banks like Maybank, CIMB, or RHB is a straightforward option.

You can visit a branch with your SSM documents, open an account, and get started quickly. For fully local businesses, this setup works well.

When it starts to cost you money

The limitation shows up when your business becomes even slightly international.

You might start running ads billed in USD, sourcing products from overseas suppliers, or accepting payments from customers outside Malaysia. At that point, a ringgit-only account begins to introduce hidden costs.

Each time money moves across currencies, the bank converts it using its own exchange rate — typically marked up by 2–3% above the mid-market rate. This is not charged as a separate fee, but built into the rate itself, so it often goes unnoticed.

Over time, these conversions add up. A business moving RM200,000 across currencies annually could lose RM4,000–6,000 to FX markups alone.

A different approach: multi-currency business accounts

This is where Airwallex comes in.

Instead of converting every transaction back to MYR, you can hold, receive, and spend in multiple currencies, all within a single account. This gives you more control over when you convert funds and how much you pay in FX fees.

Here’s what you get with Airwallex: 

• Hold 20+ currencies: When you receive USD, EUR, SGD, or other supported currencies, the money stays in that currency until you choose to convert it.

• Avoid double conversion costs: If you collect USD and also spend in USD — for example on Meta ads or SaaS subscriptions — you can pay directly from your USD balance without converting back to MYR.

• Pay suppliers and platforms globally: Send money to 200+ countries. 94% of transfers go through local rails, with no transfer fees.

• Accept 160+ local payment methods: Support a wide variety of payment methods, including FPX, GrabPay, Touch ’n Go, and cards.

• Manage team spending with corporate cards: Issue cards to your team, set limits, and track expenses in real time.

Step 7: Sort out delivery and fulfilment

If you sell physical products, how you handle delivery will directly affect your customer reviews and your repeat purchase rate. It's worth thinking about this before your first order comes in.

Domestic delivery options

The main couriers used by Malaysian online businesses are Ninja Van, J&T Express, Pos Laju, and DHL eCommerce.

If you sell through Shopee or Lazada, both platforms have integrated shipping solutions that connect directly to these couriers. For sellers on their own website, tools like EasyParcel let you compare rates and book shipments without negotiating separate contracts.

International shipping

If you plan to sell to customers outside Malaysia, factor shipping costs and delivery times into your pricing from the start. Pos Laju offers international services at competitive rates for smaller parcels.

For faster delivery or higher-value items, DHL Express, FedEx, and UPS give you more control over transit times and tracking. Be upfront with customers about potential import duties on their end — it reduces disputes.

Fulfilment as you grow

When you're starting out, shipping from home is fine. As order volume grows, third-party logistics (3PL) providers like Locad and Teleport offer warehousing and fulfillment in Malaysia — you send them your stock and they handle the rest.

Step 8: Market and grow your online business

Getting your business set up is one thing. Getting customers to find you is another. Here are the main channels Malaysian online businesses use to grow.

Search engine optimisation (SEO)

SEO is the practice of getting your website to show up on Google when people search for what you sell. It takes time — usually several months before you see meaningful results — but the traffic it brings is free and consistent once it kicks in.

Start with the basics: make sure each product or service page has a clear title, a description that matches what people actually search for, and fast loading times on mobile. If you sell locally, set up a Google Business Profile and optimise it with your business category, photos, and opening hours.

Social media

TikTok, Instagram, and Facebook are the three platforms where most Malaysian online businesses build their audience. TikTok in particular has driven significant sales for small businesses through short videos — you don't need a big following to get reach if the content is good.

Pick one or two platforms where your target customers spend time, and post consistently. Trying to be everywhere at once when you're just starting out spreads you too thin.

Paid advertising

Paid ads let you reach customers immediately rather than waiting for organic growth to build. Meta Ads (Facebook and Instagram) and TikTok Ads are the most commonly used by Malaysian online businesses. Google Ads works well if people are actively searching for your product category.

Start with a small daily budget to test what works before scaling. Track your cost per purchase — not just your clicks — so you know whether your ads are actually profitable.

Influencer and affiliate marketing

Malaysia has a large and active community of micro-influencers — creators with between 10,000 and 100,000 followers — who work with small businesses at accessible rates. A genuine product review from a trusted creator in your niche often converts better than a polished ad.

Affiliate marketing is a lower-risk version of the same idea: you only pay when someone makes a purchase through a unique link. Platforms like involve.asia connect Malaysian businesses with affiliates and influencers.

WhatsApp and community building

WhatsApp is deeply embedded in how Malaysians communicate, and many online businesses use it as a direct sales and customer service channel. A WhatsApp Business account lets you set up a product catalogue, quick replies, and automated messages.

Building a WhatsApp broadcast list of existing customers is one of the most cost-effective ways to drive repeat purchases.

Step 9: Tap into government support

In Malaysia, there are several government programmes designed to help small businesses get off the ground or grow. Here are a few:

MDEC (Malaysia Digital Economy Corporation)

MDEC is the government body responsible for driving Malaysia's digital economy. It runs programmes to help businesses adopt digital tools, sell online, and access eCommerce platforms.

If you're just digitising your business or moving sales online for the first time, MDEC's programmes are worth exploring. Visit mdec.my for current initiatives.

TEKUN Nasional

TEKUN Nasional provides financing to small business owners and micro-entrepreneurs in Malaysia. It offers several individual and group financing schemes, including options for online sellers through its Skim Pembiayaan Online TEKUN (SPOT) programme.

Eligibility criteria, financing amounts, and application requirements are listed at tekun.gov.my.

SME Corp Malaysia

SME Corp is the central coordinating agency for small and medium enterprise (SME) development in Malaysia. It links businesses to grants, training, and advisory programmes across various industries.

Visit smecorp.gov.my to explore what is currently available and whether your business qualifies.

HRD Corp

If you plan to hire staff, HRD Corp offers subsidised training programmes for Malaysian employers. This is useful for businesses that want to invest in upskilling team members in areas like digital marketing, customer service, or operations. Visit hrdcorp.gov.my for details.

A practical note: grant programmes, eligibility criteria, and funding amounts change regularly. Before spending time on an application, check the official website for the programme and confirm the details are current.

Frequently asked questions (FAQs)

Do I need to register my online business in Malaysia?

Yes. If you are selling goods or services in Malaysia, you are required to register your business with SSM. This applies even if you are only selling through Shopee, Instagram, or WhatsApp. Registration protects you legally, is required by most payment gateways before they approve your account, and makes it easier to open a business bank account.

How much does it cost to register a business with SSM?

For sole proprietors, registration costs RM30 per year if you register under your own name, or RM60 per year if you register under a trade name. These fees are paid through the ezBiz portal and are renewable annually. Sdn Bhd registration costs more and varies depending on your share capital and the services of your company secretary.

Can foreigners start an online business in Malaysia?

Yes, but with some restrictions. Foreigners cannot register as a sole proprietor or in a partnership — those structures are limited to Malaysian citizens and permanent residents. The most common route for foreigners is to set up an Sdn Bhd with a resident director. Depending on the nature of your business, you may also need a WRT licence to sell retail goods online.

What is the best payment gateway for an online business in Malaysia?

It depends on who your customers are and whether you sell internationally. For businesses selling locally, you need a gateway that supports FPX, DuitNow, and e-wallets like GrabPay and Touch 'n Go. For businesses with overseas customers or expenses in foreign currencies, a platform like Airwallex lets you accept payments in multiple currencies and hold funds without automatic conversion to ringgit.

When do I need to register for SST in Malaysia?

You need to register for Sales and Service Tax (SST) once your annual revenue from taxable goods or services exceeds RM500,000. If you are just starting out, you are unlikely to hit this threshold immediately — but it is worth tracking your revenue from the start so you know when you are approaching it.

Do I need a separate business bank account for my online business?

Yes. Most payment gateways in Malaysia require a business bank account — not a personal one — before they will approve your application. Beyond that, keeping your business and personal finances separate makes tax filing simpler and gives you a clearer picture of how your business is actually performing.

Sources:

1. www.ssm.com.my/Pages/Services/Registration-of-Business-(ROB)/table-of-fees/Table-of-Fees.aspx

2. mysst.customs.gov.my/RegisterBussiness

3. stripe.com/en-my/pricing

4. senangpay.com/pricing

5. www.airwallex.com/my/pricing

6. hasil.gov.my/en/e-invoice

This publication does not constitute legal, tax, or professional advice from Airwallex nor substitute seeking such advice, and makes no express or implied representations / warranties / guarantees regarding content accuracy, completeness, or currency. If you would like to request an update, feel free to contact us at [[email protected]]. Airwallex (Malaysia) Sdn. Bhd., a company incorporated under the laws of Malaysia with company registration number 201801007747 (1269761-X), is regulated as a licensed remittance business under the Money Services Business Act 2011 (Licence number 00743 with an expiry date of 3 August 2028, an E-Money Issuer and a registered merchant acquirer under the Financial Services Act 2013.