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:

  1. 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 findings

  2. Wholesale, 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.

  3. Telecommunication Sector Licenses

  4. Broadcasting Sector Licenses

  5. 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.

  6. 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.

  7. 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.

  8. 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 PM

    During 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.

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