Opening an online business in Malaysia comes with many benefits but the most important one refers to the possibility of selling all the products worldwide. Considering the fast development of the e-commerce business in Malaysia and the online direction of shoppers which will set a new record by the end of 2021 – 27 million online customers – local entrepreneurs can easily set up their operations in this flourishing field and expect a fast development.
Limited liability partnership for your online shop in Malaysia
The limited liability partnership represents a suitable business form for most activities in Malaysia and a great starting point for locals interested in opening a company in the e-commerce sector. Such entity is a blend of a traditional partnership and a company in Malaysia, with the benefits of a private limited company and respecting the LLP Act 2016. Registering a limited liability partnership in Malaysia starts with a name verification and approvals for the chosen one. The following requirements are also part of the incorporation process of such a company:
• at least two partners must form an LLP in Malaysia (natural persons or other entities);
• appoint the compliance officer for your LLP who will act as a secretary in respect with the provisions of Companies Act 1965;
• offer details about the business address;
• sign the partnership agreement with information about the duties, rights and responsibilities of the LLP members.
Entrepreneurs in Malaysia should bear in mind that an LLP is registered with the Companies Commission in Malaysia or the SSM (Suruhanjaya Syarikat Malaysia) in about seven working days when the Registration Number is issued.
As soon as you have received the registration certificate of your LLP in Malaysia, you will just have to proceed with opening a bank account, register for tax purposes, hire an accounting firm and staff for your online business. In this sense, it is suggested to ask for support and guidance offered by professionals in this sector.
What is the Digital Free Trade Zone in Malaysia?
DFTZ or the Digital Free Trade Zone in Malaysia was established with one purpose only and that is to observe and to support all operations in the e-commerce sector. In simple words, DFTZ is a digital platform which facilitates the cross-border trading activities in order for entrepreneurs to export or send their products outside the country in a fast, legal and reliable manner.
This platform helps entrepreneurs from Malaysia to speed up and ease the freight authorization process, to have access to clients worldwide, and to let them enter varied structures related to insurance, digital marketing, finance and many more. Your e-commerce business in Malaysia can effortlessly grow with the help of DFTZ, but it is suggested to decide from the very beginning the type of products and services you wish to sell on the internet. The same DFTZ may support sellers in matters like labeling, packing, and warehousing services.
What to consider when setting up an e-commerce business in Malaysia
Even if it is a challenging domain with full potential for development, the e-commerce sector offers a wide range of possibilities for all entrepreneurs in Malaysia. Before entering this appealing world, it is best to, first of all, observe the phenomenon and its direction, and to analyze the idea of having a website to sell stuff. One must keep in mind that a research is mandatory before making any movement meaning that he or she must establish the type of activity, the products for selling purposes, identify the target clientele, consider the start-up costs, the investments and establish the infrastructure in this sense.
Direct your attention to marketplaces in Malaysia
There are numerous entrepreneurs who do not want to invest, at the beginning, in a website in order to place their goods and services for selling purposes. Instead, their businesses can start with the help of marketplaces in Malaysia and the multitude of benefits involved. In this sense, the products are placed on particular online platforms, at the desire of the entrepreneur, according to the money he or she wants to invest.
Among the advantages of selling on Malaysian marketplaces, we mention that most platforms offer a wide range of marketing strategies, or even better, a team can take care of this time-consuming part of your business. This represents not only a proper and suggested start in the e-commerce sector, but also a great opportunity for those who have limited budgets but want to expand in a fast manner. The social media channels used nowadays are important marketing tools for any kind of online shop, whether they activate in the textile sector or the automotive field, as a few examples.
What is the direction of the e-commerce field in Malaysia?
The online businesses are promising not only for 2018 but on a long-term, as millions of internet users in Malaysia turn into online shoppers. With a massive potential observed by many tycoons, the e-commerce market in Malaysia generates lots of money and even more, it sustains the economy in this country as an important and necessary player at an international level.
If we speak about numbers, 2017 was a fruitful year for online retailers in Malaysia, as there have been registered about $65 billion worth of products. The implementation of DFTZ in Malaysia was essential to the overall online operations, the platform being appreciated as an e-fulfillment center and a proper place to develop as a small entrepreneur or as a single brand at the beginning of the road in the e-commerce area in Malaysia.
It is also mandatory to observe the evolution of the mobile shoppers in Malaysia because, at the moment, around 60% of the nationals are internet buyers who prefer such acquisitions instead of using the desktop applications for online shopping sessions. Electronics, electrical appliances (including medical equipment), textiles, financial services, and even groceries are a few of the products which can be successfully placed for selling purposes through online shops in Malaysia.