Recently, I helped a friend who was trying to register a small business under the Sarawak ordinance—a sole proprietorship. What should have been a simple process turned into an exhausting series of visits to the LHDN office.
The First Visit: A Disappointing Start
On his first trip, my friend arrived at LHDN, hoping to form his business. Unfortunately, he was told that to even begin the process, he would have to come before 8:00 AM to get a number for a business name search. No number, no process. So, he left empty-handed, already feeling the frustration.
My friend queued up for the number
The Second Visit: More Hurdles
On his second visit, he managed to get the name approved. However, the next hurdle arose—he was advised that he would need to come back yet again before 8:00 AM, this time prepared with the company’s stamp and a lease agreement for the business. It felt like every step forward came with an additional layer of complication.
The Third Visit: An Unexpected Setback
Today was the third attempt. Determined, my friend queued up before 8:00 AM to secure a number, while I worked on stamping the lease agreement. I soon learned that the stamping process had to be done online, and I thought to myself, “Oh no, this will cause another delay!” Given the complexity of online procedures, I knew it would be unlikely to complete the stamp within a few hours. Nevertheless, I proceeded, stamping the document right there under a flagpole outside the LHDN office.
While I was in the middle of it, a frustrated young man approached me. “Abang datang untuk tambah bidang?” he asked. “Sik,” I replied, “Saya tengah nak stamp lease agreement online,” I added.
With a resigned expression, he said, “Hari ini buat esok baru siap.” In my mind, I was already thinking about my friend, knowing he'd likely have to come back before 8:00 AM the next day to try again.
Then, I overheard the boy on a phone call, explaining in a disheartened tone, “Aku dah datang que ambik nombor sebelum 7:30 pagi, tapi bila sampai kat counter, pegawai ya kata pemilik kenak datang sendiri.” He sounded so disappointed, trying to convince the person on the other end that he had arrived early, only to be told he couldn’t complete the task without the owner being present. Kesian him—he had done everything right, but bureaucracy was in his way, just like it had been for my friend.
The worst part came next: My friend walked out, looking defeated, and said, “Nombor habis,” meaning all the numbers for the day were gone. He would have to return another day and queue all over again.
Kesian both my friend and the young man. I could only imagine how his boss might think he was “ular”— a term for workers who appear lazy or try to avoid work.
A Secret Solution: SSM Registration
At that point, I couldn’t keep it to myself any longer. I revealed to him that, four days earlier, I had secretly registered his business online via the Companies Commission of Malaysia (SSM). All he needed to do now was visit the SSM office to activate the registration. When he did, it took less than 30 minutes to go from approval to receiving the official business registration certificate!
However, there was one small hitch: the business name had to be changed, as the original name had already been registered during his second visit to LHDN.
Why the Difference?
You might wonder why we even bothered with LHDN in the first place. The issue lies in Sarawaks unique business registration requirements, governed by a different ordinance. While federal law allows for faster, more efficient processes via SSM, registering a business under Sarawak’s ordinance is a much more complex and frustrating ordeal.
When I was filling out the information for SSM, a pop-up message alerted me that I couldn’t register the business under a Sarawak or Sabah address because of the ordinance. Since my friends business was primarily online and based on consultancy, he didn’t need a physical office. So, I used my KL address for his business, and the application was approved with no hassle.
Why Is This Process So Difficult?
The inefficiency and layers of bureaucracy that people face when registering their small businesses under the Sarawak ordinance are mind-boggling. Why should a small business owner have to endure multiple early-morning queues, only to be told there are no more numbers available for the day?
Meanwhile, under federal law, the entire process—approval, registration, and certification—can be completed in under 30 minutes! The disparity between the two processes raises important questions about accessibility and fairness. For people living far from the city, having to queue up before 7:30 AM, potentially for several days, just to get a business registered is not only inconvenient but also unfair.
A Need for Change
It’s disheartening to see how difficult it is for small business owners in Sarawak to complete a process that should be simple. There needs to be a more streamlined, fair approach that matches the efficiency found under federal law. After all, encouraging small businesses should mean reducing hurdles, not creating more.
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