Starting a Small Business in Sarawak: A Practical Guide for Entrepreneurs 

Introduction 

Sarawak, Malaysia’s largest state on Borneo Island, offers rich opportunities for small business owners. With its strategic location, diverse natural resources, growing digital economy, and government incentives, Sarawak is a promising land for entrepreneurs ready to take their first step. Whether you’re a Sarawakian venturing into business or an outsider planning to invest locally, this article outlines the key steps, considerations, and local-specific requirements for setting up a small business in Sarawak. 

Step 1: Choose your business 

The most common business structures for small enterprises in Sarawak are: 

✅ Tip: Most SMEs in Sarawak start as sole proprietors or Sdn. Bhd. companies for liability protection. 

Step 2: Register your business 

For Sole Proprietors & Partnerships: 

• Register with the Companies Commission of Malaysia (SSM) via https://www.ssm.com.my 

• Registration can be done online through ezBiz portal. 

• Cost: RM30–RM60/year (approximately). 

💡 It is advisable for the parties to get the necessary partnership agreement prepared and stamped by the professional solicitors. Further, to minimize the risks of error and misfiling of the necessary information and forms, the parties may get the professional solicitors to attend the registration of their business with SSM. 

For Sdn. Bhd. Companies: 

• Incorporate via SSM’s MyCoID portal. 

• Minimum requirement: 1 director (resident in Malaysia) and 1 shareholder. 

• Appoint a company secretary within 30 days of incorporation. 

💡 It is advisable for the business owner to engage a licensed company secretary or corporate service firm in Sarawak to assist on the above matter, as the processes involved are more complex in nature. 

Step 3: Obtain Necessary Licences & Approvals 

Depending on the nature of your business, you may need: 

• Trade licence or business premises licence from the Local Authority (PBT) (e.g., Bintulu Development Authority, MBKS, DBKU etc). 

• Halal certification (for food businesses). 

• Import/export licences (for trading). 

• Sector-specific licences (e.g., F&B, construction, manufacturing, logistics). 

📌 Each district in Sarawak has its own local council—it is important for the business owner to check with the relevant one for compliance purposes. 

Step 4: Secure a business premise 

If you’re operating physically (e.g., retail, café, workshop), you must: 

• Rent or buy a commercial premises. 

• Apply for business signage licence and occupancy certificate. 

• Ensure the location is zoned for commercial use under the local plan. 

If you’re starting small, shared offices, home offices, and online businesses are also viable and increasingly common. 

Step 5: Open a Business Bank Account & Register for Taxes 

• For companies, it is advisable for the business owner to open a corporate bank account under the business name. 

• Further, the business owner must register for: 
  • Income Tax (LHDN) 
  • Sales & Service Tax (SST) – if applicable 
  • EPF, SOCSO, and EIS – for employee contributions 

• Business owner also must consider setting up e-payment platforms if running a retail or e-commerce business. 

Step 6: Tap Into Sarawak Government Support 

The Sarawak government actively promotes SMEs and local entrepreneurs through various programs: 

• Yayasan Sarawak Entrepreneur Scheme 

• Sarawak Digital Economy Corporation (SDEC) – grants for tech-driven businesses. 

• Urusniaga Bumiputera Sarawak (UBS) – support for Bumiputera-owned businesses. 

• CREDIT Guarantee Corporation (CGC) – microfinancing for small enterprises. 

• SKM – for cooperatives. 

📞 Check with your nearest Resident’s Office or SME Corp Sarawak for current assistance and funding options. 

Legal Considerations 

When setting up a small business in Sarawak, it is crucial to consider both federal and state legal requirements. While business registration is governed by federal laws such as the Companies Act 2016 and Registration of Businesses Act 1956, Sarawak exercises constitutional autonomy over key areas like land, local government, and native customary rights. Entrepreneurs must therefore ensure compliance with Sarawak-specific legislation such as the Sarawak Land Code (Cap. 81)—particularly if the business involves leasing land, dealing with native land (NCR), or operating from physical premises. Additionally, business operators must adhere to local council by-laws and secure all relevant trade licences and sectoral approvals to operate legally within the state. 

Conclusion 

Setting up a small business in Sarawak is relatively straightforward with the right guidance. The state offers a welcoming environment, access to regional markets, and increasing digital infrastructure. With proper registration, compliance, and community engagement, your small business can grow sustainably within Sarawak’s vibrant entrepreneurial landscape. 

CAPTION 

Sarawak, the largest state in Malaysia, presents strong opportunities for small business ventures due to its strategic location, abundant natural resources, expanding digital economy, and supportive government policies. Entrepreneurs, both local and from outside the state, can benefit from understanding the key steps and local requirements involved in starting a business there. 

With the right guidance, setting up a small business in Sarawak is a manageable process. The state offers a business-friendly environment, growing access to digital tools, and strong community support. Proper registration, legal compliance, and local engagement are essential for long-term success in Sarawak’s dynamic entrepreneurial ecosystem.