How to Start Homestay Business in Malaysia: Complete Guide to Stay Legal

Starting a homestay in Malaysia sounds simple — list your property on Airbnb or Booking.com, welcome guests, and earn income. But many owners soon realise the biggest challenge is not hosting — it’s navigating the rules.

Each state has different requirements, local councils have their own guidelines, and ministries like MOTAC, Local Government, and Customs all play a role. As 2026 approaches, stricter short-term rental regulations are being enforced, leaving many owners confused about:

• Do I need a licence to operate homestay?
• Which authority should I register with?
• What new rules are coming in 2026?

This guide will answer all these questions in simple, step-by-step terms, so you can start your homestay legally and confidently

What Licences Do Homestay Owners Usually Need to Apply?

If you’re starting a homestay, you’ve probably asked yourself, "Do i need to apply with SSM, PBT, or MOTAC? Or all of them?"

Here’s a complete guide to help you understand the licences you may need, step by step.

1. SSM Registration (Suruhanjaya Syarikat Malaysia)

Who needs it? 

Everyone who runs a business in Malaysia. SSM registration is what makes your business legal. Since a homestay is a business, you should register it just like any other business. Without SSM, your homestay is not legally recognised and you cannot operate officially.

How to register?

1. Go to Ezbiz Portal
2. Create an account (New User Registration)
3. Activate your account at a nearby SSM counter or kiosk
4. Complete your business registration on Ezbiz, including:
   • Business name
   • owner details
   • Business address
5. Download and keep your SSM certificate 

Tips: Do not register your business name using the word “Homestay” under SSM because it is controlled by MOTAC’s Kampung Homestay Programme. Instead, use terms like:

• Guest House
• Vacation Home
• Lodge
• Staycation
• Or simply your brand name

For more information you can refer to SSM Portal

2. PBT (Local Council) License

After registering your business with SSM, most homestay or short-term rental operators will need approval from their local council (Pihak Berkuasa Tempatan @ PBT). This is because you are running a business from a physical property, and local councils regulate business activities, zoning, and public safety within their area.

Do all homestay need a PBT license?

In many councils, the answer is yes. Homestays are treated as a business and you may be required to apply for a Business Premise Licence. However, requirements can vary by state and local council. Some councils have specific rules for short-term rentals, while others may classify them under general accommodation or tourism activities.

Because of this, it is important to check with your local PBT to confirm what licence applies in your area.

Why is a PBT licence important?

A PBT licence ensures that your homestay:

• Operates legally within local zoning rules
• Meets basic safety and hygiene standards
• Pays the correct local taxes or assessment (cukai pintu)
• Recognised as a registered business in your neighbourhood

Think of SSM as proof that your business exists, and the PBT licence as approval that you can operate that business from your property. 

Note: Once your homestay is officially registered and licensed, you can start listing it on Google. This makes it easier for guests to find you and increases your visibility. Check out the step-by-step guide here.

3. MOTAC Registration

Who needs it?

Only homestays that are part of the community-based village homestay programme under Cultural Tourism need to register with MOTAC.

If your property is not part of this programme, for example listings on Airbnb or Booking.com, MOTAC registration is not required. However, you must still comply with SSM and PBT requirements.

What MOTAC Registration Allows?

Once approved, MOTAC registration lets you:

• Officially market your property as a “homestay” under the program
• Offer cultural activities and local experience activities to guests
• Access to MOTAC marketing and promotional support 

How to Register:

1. Visit the official MOTAC website and find the Kampung Homestay Programme section
2. Submit your application, including property details and owner information
3. Comply with any required standards and inspections
4. Receive your official MOTAC certification once approved

What is coming in 2026 for STRA/ Homestay Owner?

• PBT Licence Will Be Mandatory
  
  • All short-term rental (STRA) and homestay operators must obtain a valid local authority (PBT) licence before registering as tourist accommodations. 08 Sept 2025
    
    
• National STRA Guidelines Are Coming
  
  • MOTAC + KPKT have drafted comprehensive STRA guidelines covering licensing, safety standards, insurance, and compliance. These will be tabled to Cabinet and MNKT for adoption. 30 Jul 2025
    
    
• Digital Plaftorm Registration
  • Future rules may require that listings on platforms like Airbnb or Booking.com are officially registered, ensuring all short-term rentals operate legally under the new national framework.
    
    
• State-Specific Rules May Apply
  • Selangor plans to limit homestays and STRA units to 180 nights per year starting 2026. 23 Nov 2025
  • Local councils may also set different licence fees, operational limits, or inspection requirements. 
    
    

Note: Some of the rules mentioned above are still proposals and have not been officially confirmed yet. Regulations may change as the national STRA guidelines are finalized and adopted by local authorities. We will keep this guide updated, so you always have the latest information.

Conclusion

Starting a homestay in Malaysia is a great opportunity, but it also comes with legal responsibilities. As the industry becomes more regulated, SSM registration, PBT licensing, and compliance with future national STRA guidelines will become more important — especially as we approach 2026.

While some rules are already confirmed, others are still being developed by MOTAC, KPKT, and local councils. Every state may have different requirements, so always check with your local PBT before operating. We will update this guide as new announcements are made.

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