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 business license for setting online business

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TSjboy
post Jan 13 2009, 11:13 PM, updated 17y ago

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if we want to do online business, like set up online store/website to sell stuff, then need we get a business license? because it's considered a business already.
Canon_Ixus
post Jan 13 2009, 11:21 PM

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Getting a business license is to gain accountability (with your tax collector and accounts), and credibility (so your prospects don't think you're a one-off scammer)

Otherwise, consider doing it LYN style in garage sales or in lelong to earn a living as an individual
clementcpteh
post Jan 13 2009, 11:21 PM

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QUOTE(jboy @ Jan 13 2009, 11:13 PM)
if we want to do online business, like set up online store/website to sell stuff, then need we get a business license? because it's considered a business already.
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interested thread. What the business you would like do?
TSjboy
post Jan 13 2009, 11:26 PM

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QUOTE(Canon_Ixus @ Jan 13 2009, 11:21 PM)
Getting a business license is to gain accountability (with your tax collector and accounts), and credibility (so your prospects don't think you're a one-off scammer)

Otherwise, consider doing it LYN style in garage sales or in lelong to earn a living as an individual
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what i'm concern is legal issue. if you open a shop to run business, sure need to get business license, right? and if you fail to get license before running the shop is considered against the law. so, the same thing, if i run business online, need i to get a business license? so that i didn't against the law.

devabby
post Jan 13 2009, 11:59 PM

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Wow, pretty interesting post.

not all business need business license right?
if sell physical product need business license,
if virtual product like wordpress theme, provide design service, sell own build software no need business license right?
SUSstanly007
post Jan 14 2009, 09:15 AM

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Hey you can try on http://estall.yuniz.com

one of the ePromotions Tools call eBanners is useful.

Check out my signatures =p

I am selling my products there.
calvynlee
post Jan 14 2009, 10:06 AM

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QUOTE(Canon_Ixus @ Jan 13 2009, 11:21 PM)
Getting a business license is to gain accountability (with your tax collector and accounts), and credibility (so your prospects don't think you're a one-off scammer)

Otherwise, consider doing it LYN style in garage sales or in lelong to earn a living as an individual
*
Once of my purpose for register a business name as you said is redibility, but after register it, found that taxation problem is the most headace, since I did not do much business in the past half year, also not much profit. I guess hire an accountant or some one to make the taxation stuff will kill me a lot

By the way, here is a refference on how to register business name online, I do it all online without step into SSM branch.

honestly if you does serve mainly malaysia customer, then I suggest no need to register, because now a days, if you talking online business, there are another kind if credibility call "trust", having a malaysia business certificate, foreigner also dono what is that/ or not understand on the role of SSM

This post has been edited by calvynlee: Jan 14 2009, 10:14 AM
getsmart
post Jan 14 2009, 11:01 AM

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If you setup stall at roadside or pasar malam without license, you get saman from you friendly Majlis Perbandaran officers coz you are using public land.

Online business not using any public property. Besides you already pay for your Streamyx/webhosting/domain name. tongue.gif
johntxy
post Jan 14 2009, 12:22 PM

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It really depends on what you want to sell. Nonetheless you can register a sole proprietorship company at only RM60 a year. No harm with that amount of money. You gain alot of trust from there.


clementcpteh
post Jan 14 2009, 12:30 PM

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QUOTE(johntxy @ Jan 14 2009, 12:22 PM)
It really depends on what you want to sell. Nonetheless you can register a sole proprietorship company at only RM60 a year. No harm with that amount of money. You gain alot of trust from there.
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yea, no business license how to do? very simple question1. how to open bank account as company account without license register for tranfer payment or bankin by customer?
question2, are you want order thought ecommerce, and pay to personal account. I won't buy without register business. when get cheating, unable get something to prove.

Canon_Ixus
post Jan 14 2009, 01:37 PM

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QUOTE(jboy @ Jan 13 2009, 11:26 PM)
what i'm concern is legal issue. if you open a shop to run business, sure need to get business license, right? and if you fail to get license before running the shop is considered against the law. so, the same thing, if i run business online, need i to get a business license? so that i didn't against the law.
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If you are just selling stuffs that accepts payment through paypal, for example, you may not need a business license. And your earnings don't even need to be declared. Transfer your money into a debit card and swipe away to cash out. Our government is so lacking behind in e-commerce that these transactions are basically untraceable.

However, several factors work in favour of you with a business license: you can order products in bulk at wholesale prices. Normally wholesalers don't deal with individuals but business entities.

QUOTE(calvynlee @ Jan 14 2009, 10:06 AM)
Once of my purpose for register a business name as you said is redibility, but after register it, found that taxation problem is the most headace, since I did not do much business in the past half year, also not much profit. I guess hire an accountant or some one to make the taxation stuff will kill me a lot

By the way, here is a refference on how to register business name online, I do it all online without step into SSM branch.

honestly if you does serve mainly malaysia customer, then I suggest no need to register, because now a days, if you talking online business, there are another kind if credibility call "trust", having a malaysia business certificate, foreigner also dono what is that/ or not understand on the role of SSM
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I had followed yr guide to get my Sole prop license done tongue.gif

Taxation wise, I am still clueless, as i would have half income from my ex company, and half from my business...but since business has been slow, i would be claiming a loss. rclxub.gif Bought a book on how to do taxation for small businesses....too lazy to read! sweat.gif
calvynlee
post Jan 14 2009, 01:40 PM

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QUOTE(Canon_Ixus @ Jan 14 2009, 01:37 PM)
but since business has been slow, i would be claiming a loss.  rclxub.gif  Bought a book on how to do taxation for small businesses....too lazy to read!  sweat.gif
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lolz... expenses more the profit... this is a great way to reduce or avoid tax... hehe
buy computer, meal, petrol... bla bla bla.. all with company expenses


Added on January 14, 2009, 1:42 pm
QUOTE(clementcpteh @ Jan 14 2009, 12:30 PM)
question2, are you want order thought ecommerce, and pay to personal account. I won't buy without register business. when get cheating, unable get something to prove.
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yeah, you are right, asking customer to pay me at my saving account look not professional, at least get a current accout with company name as register account.

I am going to make 1 soon, still looking for referal tongue.gif

This post has been edited by calvynlee: Jan 14 2009, 01:42 PM
clementcpteh
post Jan 14 2009, 02:00 PM

Find the business that's right for you.
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QUOTE(calvynlee @ Jan 14 2009, 01:40 PM)
lolz... expenses more the profit... this is a great way to reduce or avoid tax... hehe
buy computer, meal, petrol... bla bla bla.. all with company expenses


Added on January 14, 2009, 1:42 pm

yeah, you are right, asking customer to pay me at my saving account look not professional, at least get a current accout with company name as register account.

I am going to make 1 soon, still looking for referal tongue.gif
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Hong leong bank RM1000 can open current account. Citibank rm5000. Don't let customer feel doubt about payment process. When they at shopping cart checkout, another step you going get the payment. If they doubt, they will think again for search other ecommerce for getting same thing like your one, with confident the payment process. you order will gone.
I get the good review by canada customer said my Ecommerce safe and happy doing business with me. Below one of customer said

Good Morning Clement,

Got them yesterday – they are fantastic – my friends & family are going to be very happy. You did a great job. I appreciate all that you have done. It has been a real pleasure ordering from your website. Excellent customer service. I will take pictures & email them to you after Christmas.



Thanks again for everything,

Stacey


TSjboy
post Jan 14 2009, 03:02 PM

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QUOTE(devabby @ Jan 13 2009, 11:59 PM)
Wow, pretty interesting post.

not all business need  business license right?
if sell physical product need business license,
if virtual product like wordpress theme, provide design service, sell own build software no need business license right?
*
i'm very confuse with this too, for freelancer that build website for clients and build software to sell, by law need business license or not? if not mistaken, i seem came across a thread in this forum, got freelancer saying need to get license, but i can't find the thread anymore, hope freelancers here can give guidance as i found many ppl confuse with this and interested to know.

from most of the replies, seem you guys feel that not getting business license for an online business is not against the law? i start this thread because a friend of mine has told me that when an online activity has involve the dealing of money, then need to get business license...i'm not sure with this point of view so trying to ask here...
getsmart
post Jan 14 2009, 03:27 PM

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Malaysia doesn't own the Internet so they can't issue you a license tongue.gif.

A business license is different from a business registration. You need license to sell alcohol in restaurant or operate a cyber cafe.

Whether you are registered or not is simply for taxation/bank/lawsuit purposes. It's just an identity whether you wanna use your own name or a business name.

TSjboy
post Jan 14 2009, 03:34 PM

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QUOTE(getsmart @ Jan 14 2009, 03:27 PM)
Malaysia doesn't own the Internet so they can't issue you a license tongue.gif.
so, online business don't need business license? need business registration?

QUOTE

A business license is different from a business registration. You need license to sell alcohol in restaurant or operate a cyber cafe.

Whether you are registered or not is simply for taxation/bank/lawsuit purposes. It's just an identity whether you wanna use your own name or a business name.
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wah, very confuse, you meant business license different with business registration? can you explain a bit...from the normal business that operate in a shop?

for the real life business, operating as a shop, need business registration, right? how about business license? need to get business license too?
getsmart
post Jan 14 2009, 03:49 PM

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Not that i got any experience setting up a shop, but i will try to explain difference between license and registration.

You can registered as Restaurant ABC. But you can't sell beer yet unless got license from majlis perbandaran (MP). You can't even put on a signboard with your Restaurant name on it without license.
TSjboy
post Jan 14 2009, 04:01 PM

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QUOTE(getsmart @ Jan 14 2009, 03:49 PM)
Not that i got any experience setting up a shop, but i will try to explain difference between license and registration.

You can registered as Restaurant ABC. But you can't sell beer yet unless got license from majlis perbandaran (MP). You can't even put on a signboard with your Restaurant name on it without license.
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thanks, but still a bit blur. if we take it as a cloth selling shop, not restaurant. so, need to register the business under a company name, right? then, concerning need license for signboard, i know about it. but, what i'm confuse is want to sell cloth in the shop need license? (in your eg case saying selling beer)

so, let's say i register the clothing business under a business name ABC, but i don't want to put on the signboard, can i sell clothing without getting license?(only register the business), hope you understand what i'm trying to ask.
getsmart
post Jan 14 2009, 04:31 PM

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Just check with the Majlis Perbandaran or Majlis Bandaraya.

Selling cloth, never hear need license, except maybe the basic business license to operate at the location.



djzen
post Jan 14 2009, 05:46 PM

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bottom line is - you should register a company if you are doing business and selling products. but, you dont need to apply for a license since Malaysia doesnt own the internet.

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