Before a business can legally commence operations, it must adhere to various licensing requirements, which can be broadly categorized into three groups: general licenses, sector/industry-specific licenses, and activity-specific licenses. These licenses are mandated by legislation and overseen by government agencies, statutory bodies, and local authorities, covering registrations, approvals, and permits. Compliance requirements vary depending on the industry, business activity, and location.
General licences
General licenses encompass those essential for any business starting in Malaysia. These may include:
1. Company Registration
2. Company and Employees Income Tax Registration
3. Employees Provident Fund
4. Social Security Organisation
5. Human Resources Development Fund
6. Business Premise Licenses and Signboard Licenses
Businesses in Malaysia are mandated to apply for business premise licenses and signboard licenses from the respective State Authorities. The specific requirements for these applications may vary depending on each local authority.
Typically, the following documents are required for Business Premises License and Signboard License applications, although the exact list may vary based on the local state authority:
For Company
(i) Certificate of Incorporation (Form 9/ Notice Section 17) – 1 copy;
(ii) Return of Particulars of Directors, Managers and Secretaries (Form 49 / Notice Section 58) – 1 copy;
(iii) Photos of your business premise (front and interior of premise);
(iv) Any one Director’s NRIC / Passport as stated in Form 49 / Notice Section 58 – 1 copy;
(v) Sample of signboard indicating design and color (if applicable);
(vi) Photos showing location of signboard (if applicable).
For Limited Liability Partnership (LLP)
(i) Certificate of Registration – 1 copy;
(ii) e-SSM Business Profile – 1 copy;
(iii) Photos of your business premise (front and interior of premise);
(iv) Any one Partner’s NRIC / Passport as stated in Business Profile – 1 copy;
(v) Sample of signboard indicating design and color (if applicable);
(vi) Photos showing location of signboard (if applicable).
For Enterprise (Sole-proprietor / Partnership)
(i) Certificate of Registration of Business (Form D) – 1 copy;
(ii) e-SSM Business Profile – 1 copy;
(iii) Photos of your business premise (front and interior of premise);
(iv) Copy of any Business owner/Partner’s NRIC as stated in Form 49 – 1 copy;
(v) Sample of signboard indicating design and color (if applicable);
(vi) Photos showing location of signboard (if applicable).
For business premise in Kuala Lumpur, you may visit the following DBKL links for more information.
Sector / Industry-Specific Licenses
What are sector/industry-specific licenses?
Sector/Industry Specific licenses are specific to particular industries or sectors and are mandated by the government to control the development of those sectors in alignment with the country’s development policies.
To determine which Government Department Authority you should liaise with for Sector/Industry Specific licenses, please refer to #####.
Examples of Sector/Industry Specific licenses include:
Manufacturing Sector Licenses
A company with a paid-up capital of RM 2.5 million or less and a workforce of fewer than 75 employees can request a confirmation letter stating exemption from manufacturing licenses. To do so, the company needs to submit Form ICA 10 along with the following documents:
– Memorandum and articles of association/constitution copy
– Certificate of incorporation (Section 17)
– Registered address proof (Section 46)Your company must obtain a manufacturing license if it:
– Engages in high technology or new manufacturing projects
– Participates in the expansion or adaptation of agricultural projects
– Undertakes new agricultural initiatives
– Aims to diversify its product range
– Engages in the commercialization of research and development findingsWholesale, Retail Trade (WRT) Licenses
– Most common license for foreign companies: Wholesale and Retail Trade (WRT) license
– Required for businesses engaged in distributive trade services
– Services include wholesalers, retailers, franchise operators, direct sellers, suppliers, distributors of goods in the local market, and agents or representatives of international trading companies
– Minimum paid-up capital requirement: RM 1 million
– Necessary to have a fully established business setup:
– Physical business location with valid tenancy agreement
– Functioning phone line
– Foreign entrepreneurs involved in these services must obtain WRT license before applying for DP10 work permit with Malaysian Immigration Department.Telecommunication Sector Licenses
Broadcasting Sector Licenses
Oil Exploration Sector Licenses
-For companies which want to set up oil and gas reserves in Malaysia, they are required to sign a production sharing agreement with the Malaysian state oil company Petronas.Construction Sector Licenses
-All companies involved in building and construction must obtain a license from the Construction Industry Development Board (CIDB) before incorporating in Malaysia and undertaking any construction-related activities in the country. Further details can be found on CIDB’s website.Banking Sector Licenses
-The Malaysian Central Bank is responsible for licensing and regulating businesses related to banking, money broking, merchant banking, and other financial activities according to the Banking and Financial Institutions Act of 1989.Licenses related to public houses
To operate a restaurant selling alcoholic beverages, you must acquire a Public House License, which can be obtained from local authorities. This license is typically valid for a period ranging from six months to one year.
Under the Public House License, liquor can be served during three designated time periods:
– From 10:00 AM until midnight
– From 10:00 AM until 10:00 PM
– From 10:00 AM until 9:00 PMDuring festive seasons, if you wish to sell liquor, you must obtain a Temporary Public House License, which is specifically applicable for the duration of the festive period it was applied for.
These licenses are essential for companies operating within their respective sectors and must be obtained in compliance with the relevant regulations.
Activity-Specific Licences
Activity-Specific licenses are licenses that govern specific activities and may be applicable to one or more industries or sectors. These licenses require investors to adhere to specific guidelines aimed at safeguarding the interests of citizens, employment, worker safety, the environment, and the general public.
Examples of Activity-Specific Licenses include:
Certificate of Fitness for Certified Machinery
Approval for Expatriate Post
Approval to install/resite/alter Air Pollution Control Equipment (bag filter and chimney)
Building Plan Approval
Sales Tax License
The above details provide a general overview to assist potential investors and business owners in making initial decisions and plans for their intended business ventures.
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