Opening a barbershop in Malaysia can be an excellent business opportunity. The men's grooming market is growing, and more customers are looking for quality services and a professional experience in modern barbershops.
In this complete guide, we explain step by step everything you need to know to open your barbershop in Malaysia: from legal requirements and business registration (SSM), to tax (LHDN), local council license, initial investment in Malaysian Ringgit (MYR), strategic location, equipment, and management tools that will help you succeed from day one.
8 Steps to Open Your Barbershop in Malaysia
Research and Business Plan
Before opening your barbershop in Malaysia, it's essential to conduct thorough market research and create a solid business plan. Many barbershops we see struggle with unclear pricing and target market—this step helps you avoid that.
Key elements to research:
- Competition analysis: Identify how many barbershops are in your area, what services they offer, their prices (typically 25–60 MYR for a haircut in major cities), and what differentiates them. Use Google Maps and local directories to analyze competition.
- Target audience: Define your ideal client: age, budget, and preferences. In Malaysia, barbershops often serve professionals, students, and families—tailor your offer to your city and neighbourhood.
- Average market prices: Research what other barbershops charge. Prices vary by city: Kuala Lumpur and Penang tend to be higher; smaller towns may be lower. Typical range: 25–70 MYR for a basic cut, 40–120 MYR for cut + beard.
- Service demand: Evaluate if there's sufficient demand. Consider population density, nearby offices or universities, and foot traffic in areas like KL, George Town, Johor Bahru, or Ipoh.
- Peak hours: One common issue in Malaysia is not matching operating hours to when people actually come—observe local patterns and consider evening and weekend slots.
Your business plan should include:
- Executive summary: Overview of your business, objectives, and main strategy.
- Market and competition analysis: Information on the local market, competitors, and your positioning.
- Marketing strategy: How you plan to attract and retain clients.
- Financial projections: Revenue, costs, and profitability estimates.
- Operations plan: How your barbershop will run day to day.
You can find business guidance and startup info at:
Strategic Location
Location is one of the most important factors for success. A good location can make the difference between success and failure.
Characteristics of a good location:
- High foot traffic: Areas with many pedestrians increase your visibility.
- Near offices, universities or residential areas: Proximity to your target audience makes it easier for clients to visit regularly.
- Parking or public transport: Many clients arrive by car or LRT; easy access matters.
- Good visibility from the street: A visible shop front and clear signage attract more clients.
- Safe, well-lit area: Clients prefer places where they feel safe.
- Easy access: Consider accessibility for all customers.
How to evaluate a location:
- Analyse nearby competition: Having competitors nearby is not always bad, but check if the market is saturated.
- Check the demographic profile: Make sure the area matches your target audience.
- Consider rent vs. potential income: High rent is only worth it if you can generate enough revenue.
- Evaluate accessibility: How clients get there—public transport, parking, etc.
You can search for commercial premises at:
Key cities and areas:
Kuala Lumpur
KLCC, Bukit Bintang, Bangsar, Mont Kiara—high rent but high traffic. Good for premium or mid-range barbershops.
George Town (Penang)
City centre, Gurney—strong market with good foot traffic.
Johor Bahru
City centre, Tebrau—vibrant market with local and Singapore clientele.
Other cities
Ipoh, Kuching, Kota Kinabalu, Petaling Jaya, and Shah Alam offer strong markets with varying rent levels.
Legal Requirements and Permits in Malaysia
To legally operate a barbershop in Malaysia, you need to comply with the following. One common issue in Malaysia is operating without the local council business license—this can lead to fines.
Business Registration (SSM)
Register your business with SSM (Suruhanjaya Syarikat Malaysia – Companies Commission of Malaysia). You can register as a sole proprietorship (perniagaan), partnership (perkongsian), or company (Sdn Bhd). Registration can be done online at the SSM portal (ssm.com.my).
Where: SSM – ssm.com.my
Estimated time: A few days
Cost: Registration fees vary; check current rates on SSM
SSM →Tax Registration (LHDN / IRB)
Register for income tax with LHDN (Lembaga Hasil Dalam Negeri – Inland Revenue Board of Malaysia). Businesses and individuals conducting business need to register and file tax returns. You can register online or at a LHDN branch.
Where: LHDN (hasil.gov.my)
Estimated time: A few days
Cost: No registration fee
LHDN →Local Council Business License (Lesen Perniagaan)
You need a business license (lesen perniagaan) from the local council (PBT – Pihak Berkuasa Tempatan) where your barbershop is located. Requirements and procedures vary by council (e.g. DBKL for Kuala Lumpur, MBPP for Penang). One common issue in Malaysia is starting before obtaining this license—do it before opening.
Where: Your local council (PBT)
Cost: License fees vary by council and business type
Hygiene and Premises
Barbershops and hairdressing salons in Malaysia must comply with hygiene and premises standards set by the local council. This includes clean tools, disinfection, and a clean premises. The council may carry out inspections. Many barbershops we see struggle with incomplete hygiene documentation—get clear on requirements from the start.
Cost: No separate permit fee, but you must invest in disinfection and hygiene measures
Ministry of Health Malaysia →If You Hire Employees: EPF, SOCSO, EIS and Contracts
If you employ staff, you must register as an employer with EPF (Employees Provident Fund), SOCSO (Social Security Organisation), and EIS (Employment Insurance System), and comply with Malaysian employment law (contracts, minimum wage, etc.). Consider using a payroll service or accountant to avoid errors.
Resources:
Estimated Initial Investment
The initial investment to open a barbershop in Malaysia can vary significantly. Here's an approximate breakdown in Malaysian Ringgit (MYR):
Note: A small barbershop with basic equipment can start around 30,000–80,000 MYR. A larger or more premium setup in Kuala Lumpur or Penang may require 100,000–250,000 MYR or more. In our experience working with barbershops, keeping 3–6 months of operating expenses as working capital reduces stress in the first year.
Manage Your Barbershop with Technology
From day one, use management software like BarberíaClub to:
- Organise appointments online 24/7
- Manage clients and their history
- Send automatic reminders
- Reduce no-shows and stay organised
- Save time on admin
Equipment You Need for Your Barbershop
To open a professional barbershop in Malaysia, you need to invest in quality equipment. Here is a guide to the essentials with approximate prices in MYR and where to find them:
Professional Barber Chairs
Barber chairs are the most important investment. Look for hydraulic, comfortable and durable chairs. You need at least one per barber.
Estimated price: 800 – 5,000 MYR per unit
Basic chairs from 800 MYR. Premium chairs 3,500 MYR or more.
Barbershop Mirrors
Large, good-quality mirrors are essential. We recommend mirrors of at least 60x90 cm, ideally with integrated lighting.
Estimated price: 150 – 2,000 MYR per unit
Basic mirrors from 150 MYR. Mirrors with LED from 1,200 MYR.
Professional Scissors
Invest in professional-grade scissors. Each barber needs at least one pair of cutting scissors and one texturising pair.
Estimated price: 80 – 800 MYR per pair
Basic from 80 MYR. Japanese or German professional from 500 MYR.
Hair Clippers
Professional clippers are essential. Look for recognised brands like Wahl, Andis or Philips. Each barber needs at least one main clipper.
Estimated price: 100 – 1,500 MYR per unit
Basic from 100 MYR. Professional from 800 MYR.
Razors and Shaving Tools
For precise shaves and finishes. Include straight razors, disposable blades and spare blades.
Estimated price: 50 – 500 MYR
Disposable blades from 50 MYR. Professional razors from 300 MYR.
Hair and Beard Products
Initial stock: gels, pomades, waxes, beard oils, aftershave lotions, etc.
Estimated price: 500 – 3,000 MYR (initial stock)
Depends on variety and brands. For use in service and for sale.
Staff Hiring
Hiring experienced barbers with a good reputation is key to your barbershop's success. A strong team can make your business stand out and build a loyal client base.
What to consider:
- Experience and portfolio: Review past work and ask for client references.
- Technical skills: Assess knowledge of cutting, shaving and current trends.
- Professional attitude: A good barber delivers great cuts and treats clients well.
- Availability: Define clear schedules and ensure they can meet them.
- Pay structure: Be clear on commissions, base salary and bonuses.
Employer obligations in Malaysia:
- Registration with EPF, SOCSO, EIS: You must register as an employer and pay contributions.
- Written employment contracts: All employees must have a written contract.
- Minimum wage: Comply with the national minimum wage (and sectoral minimum where applicable).
Resources for hiring and employment:
Management System and Technology
A good management system helps you organize appointments, manage clients, and send reminders. Many barbershops we see struggle with no-shows and double bookings—software like BarberíaClub solves this and offers online booking that Malaysian clients increasingly expect.
Marketing and Promotion
Effective marketing is crucial to attract clients. In Malaysia, Google and Instagram are widely used—post your work, location, and prices. Get your barbershop on Google Maps (Google Business Profile) and encourage reviews. Offer opening promotions and rely on word of mouth by delivering excellent service.
- Google Business Profile: Register and keep your address, hours, and photos updated
- Instagram: Post regularly; consider paid ads for your area
- Encourage happy clients to leave reviews on Google and refer friends
Tips and Best Practices for Success
Frequently Asked Questions
Do I need a license to open a barbershop in Malaysia?
You need business registration with SSM and a business license (lesen perniagaan) from your local council (PBT). You also need to register for tax with LHDN. There is no specific barber license for basic operation. Compliance with hygiene and premises standards is required. If you hire employees, you must register with EPF, SOCSO, EIS and comply with employment law.
How much does it cost to open a barbershop in Malaysia?
The initial investment can range from 30,000 to 250,000 MYR depending on size, location, and equipment. A small barbershop can start around 30,000–80,000 MYR; a larger or premium setup in Kuala Lumpur or Penang may require 100,000–250,000 MYR or more.
What is the first step to open a barbershop in Malaysia?
Register your business with SSM (Companies Commission of Malaysia) at ssm.com.my. Then obtain the business license (lesen perniagaan) from your local council (PBT) and register for tax with LHDN. Doing market research and a simple business plan first will help you choose location and pricing.