This guide provides a complete overview of what to expect and prepare for if you live in Selangor and want to set up an online business from a residential address.
For full disclosure, our points are a summary of the Selangor government’s official Guidelines for Registration and Licensing of Online Business, which you are welcome to read, though it is only available in Bahasa Melayu.
Here’s how we’ve broken it down:
- Permitted and prohibited business activities
- General and floor area requirements
- License application process and fees, and
- Signboard requirements
Let’s begin.
🔑 Key Takeaways:
- The applicant must be a Malaysian citizen.
- All relevant documents must have been submitted.
- The applicant must be the owner or a legal tenant of the house.
- The business must be conducted or marketed entirely through online channels.
- The applicant must have received support from neighbors and permission from the Joint Management Body (JMB) or Management Corporation (MC), if applicable.
- The Local Authorities may impose conditions that do not conflict with state guidelines.
- licenses are a total headache – hire us to do it for you instead!
Permitted business activities
It’s a rather long list, which we’ve broadly separated into service and product based businesses.
Service-based businesses
- Management, administration, and marketing office
- Clothing tailoring (with control over the number of machines)
- Haircutting
- Gift delivery
- Teaching, courses, and consultations
- Massage, cupping, and postnatal care
- Tuition centers and religious classes
- Printing (brochures, business cards, stickers, clothing, etc.)
- Handicrafts and arrangement services (flowers, chocolates, gifts, etc.)
- Studios such as beauty salons and others
- Beauty treatments
- Technology, multimedia, photography, and video
Product-based businesses
Computer/Telecommunication/Video/Electric/Electronic Goods
- Telecommunications including phones, mobile phones, smartphones, tablets, and related accessories
- Technology and multimedia equipment including personal computers, laptops, printers, scanners, speakers, and accessories
- Electronic games, video games, and accessories
- Music, photography, and video equipment
- Electrical, electronic equipment, and accessories
Beauty and Health Goods
- Cosmetic equipment (agents/distributors)
- Beauty products (agents/distributors)
- Personal hygiene items such as perfumes, soap, toothpaste, etc.
- Vitamins and health foods (agents/distributors)
Textile and Clothing Goods
- Ready-made clothing and clothing accessories
- Textiles including all types of fabric
Jewlery
- Belts, hats, watches, and bags
- Shoes, slippers, sandals, and similar items
- Glasses, lenses, and accessories
- All types of men’s and women’s jewelry accessories
Vehicle accessories
- All accessories for motorcycles, cars, and similar vehicles that are small-scale for supply purposes only (repair and installation are not permitted).
Baby and children’s goods
- All items and accessories for babies and children, such as milk, diapers, toys, bath products, baby bottles, water bottles, cribs, strollers, and car seats.
Stationery and reading materials
- Reading materials and accessories such as books, magazines, learning applications, etc.
- Stationery and similar items.
Agricultural goods
- Small-scale flowers, trees, and plants, fertilizers, pots, seeds, and pesticides.
Daily necessities
- Grocery items (small-scale).
- Daily necessities.
Hobby and sports goods
- Fishing, sports, and fitness equipment.
- Bicycles and bicycle accessories.
Prohibited business activities
These activities require renting a commercial premise, and mostly include businesses that are dangerous or produce significant noise and light pollution.
- Repairing vehicles
- Converting a house into a showroom
- Direct sales (retail or walk-in) to customers, such as setting up a sales table
- Use of heavy mechanical equipment
- Equipment that produces dust, noise, odors, etc.
- Sale and storage involving pets (for sale purposes)
- Sale/storage of firearms, alcoholic beverages, cigarettes, and similar items
- Sale of controlled/scheduled goods
- Sale of flammable goods, chemicals, and gasses
- Sale of perishable goods that may cause environmental contamination
- Excessive stock storage that turns residential premises into a store or warehouse
- Displaying any form of advertisement without approval from the local authority
Operating and floor area requirements
In addition to being a registered Enterprise or Sdn Bhd, a residential online business must meet the following conditions:
- Be conducted entirely online using any online channels for marketing.
- Small-scale and not hold stock that requires storage outside the residence.
- Not cause environmental health issues, traffic disturbances, or public nuisances.
- Must still appear as a residential home and not resemble a business premises.
This is closely tied to the floor space requirements the business must adhere to, which is only using a maximum 25% of the total residential area floor space.
When submitting an application, you will need to include floor plans of the residence labelling the 25% section designated to the business.
You’ll also need to provide pictures of the outside of the home from the front and interior.
License application process, documents, and fees
All applications will be done through your specific Local Authority (also known as Pihak Berkuasa Tempatan or PBT) such as DBKL, MBPJ, or MBSJ.
12 step application process
Each has their own specific requirements, but the general application process remains the same, which is as follows:
| Step | Description |
| 1 | Submit application to the Licensing Department of PBT |
| 2 | PBT reviews application form and documents |
| 3 | PBT notifies the applicant of complete / incomplete submission |
| 4 | Consideration of Temporary License |
| 5 | Technical Department Review |
| 7 | Temporary License issued |
| 8 | Process review and monitoring |
| 9 | PBT conducts premise inspection |
| 10 | Preparation of consideration paper |
| 11 | Consideration of Business License |
| 12 | Business License issued |
Here is a sample of what a valid license looks like:
Required documents
You must submit the following documents to your PBT Licensing Department:
- Completed application form (subject to the methods of your Local Authority)
- Copy of the your MyKad/ Passport
- Copy of a valid SSM registration
- Copy of premise ownership (tax documents/ title deed/ sale and purchase agreement/ stamped tenancy agreement)
- Photos of the exterior and interior of the premises
- Screenshot of the online platform/channel used for conducting online business
- Letter of approval from JMB/ MC (if applicable)
License fees
The license fee is left to the specific PBT, and honestly, we can’t say how much it might cost given it varies significantly between localities. Selangor is a big state!
To find out licensing fees either call your PBT customer service line, or get in touch with our team to do it for you.
Here’s a directory of the various Local Authorities within Selangor.
A signboard for your home based business
Once you’ve been granted a business license, you can apply to install non-illuminated signboards.
Just to be clear, here are examples of signboards with and without illumination.
Additionally, the signboard must meet the following conditions:
- The advertisement must not exceed one (1) square meter
- The use of Bahasa Melayu must be prioritised, and
- No visuals other than business information/name
The approval is subject to the procedures and regulations of your respective PBT, and the state government imposes no fee for this.
Let MISHU help with your online home business
The MISHU team is here to help you incorporate a company or register a business, find out specific Local Authority processes and fees, and help apply for the necessary business licenses on your behalf.