For those who want to do business on the world wide web the scenario is no longer the wild wild west, regulation is catching up and local eCommerce operators will have to register their business from now on.
Companies Commission Malaysia (CCM) the government body that requires all enterprise and private holding companies to register their business and report annual income, has given 30 days to online traders to register their business after they turn profitable. CCM CEO Datuk Zahrah Abd Wahab Fenner has given 6 months for all the traders to register with the agency and said the initiative is intended to protect consumers and to give confidence on these operators which is in line with registration act.
Market place and eCommerce sites like Lazada, Zalora including traders who sell their products via these platform will have to submit their request business details to CCM. Memorandum of understanding has been struck with these platforms and will be initiated across the country to have these market place sites to implement this policy. Datuk Zahrah has also warned that action will be taken under the traders act for those who fail to register with a fine of RM50,000 or face 2 years in jail or both.
It is also worth noting under the act upon registering, companies will have to declare their ownership structure and can choose to report their annual turnover. This could also mean, Alibaba owned Lazada would have to state their annual sales and pay taxes accordingly.