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Starting a side hustle, need to register SSM or not?

Selling online, small small only. Do I need to register SSM enterprise? And how does the tax work for this?
Anonymous asker ·Asked on 19 days ago ·240 views ·4 answers

4 contributors answered

Best Answer
Engineer Ravi Beginner First-hand experience Mechanical engineer turned PM, ask me about PE exam, site allowance and switching to tech.
Technically, if you're carrying on a business in Malaysia, you're supposed to register with SSM, it's not really optional even for "small small". Good news is it's cheap and easy: a sole proprietorship (enterprise) registration is around RM30 to RM60 a year via the SSM EzBiz portal, and you can do it online. Why bother even if small? (1) It's legally required and the penalty for operating unregistered can be nasty if caught. (2) You need SSM to open a business bank account, which looks more legit to customers and separates your money. (3) Suppliers, marketplaces (Shopee/Lazada official), and B2B clients often ask for SSM. On tax: business income is taxable and you declare it under Form B (business) instead of BE (employment) with LHDN. You pay tax on PROFIT (revenue minus allowable business expenses like cost of goods, delivery, ads), not gross sales, so keep records and receipts. If your side income is tiny you may still fall below the taxable threshold after reliefs, but you should still declare. Register early, it's cheap peace of mind.
Uncle Raju Insurance Beginner First-hand experience Insurance agent since 1998, I explain medical card and takaful in plain talk.
On tax, remember you pay on profit not sales, so keep ALL your receipts, cost of goods, packaging, postage, Shopee fees, ads, all deductible. Many small sellers overpay tax because they don't track expenses. A simple spreadsheet from day one saves you money and headache at filing time.
Anonymous contributor Beginner First-hand experience
Just register lah, it's literally like RM30 to RM60 on EzBiz and done in 20 minutes online. I put it off for a year thinking "so small for what", then a supplier wanted to deal only with registered business and I missed out. Also senang to open Maybank/CIMB business account after that. Cheap, do it.
Anonymous contributor Beginner First-hand experience
One heads up: if you already have a full time job, your side hustle profit ADDS on top of your salary income for tax, so it might push you into a higher bracket. Not saying don't do it, just declare it properly (Form B) and set aside some for tax so you don't get a shock. LHDN is getting better at tracking online sellers now.

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