Business License in Malaysia

A business must comply with certain types of licensing, which may be general licenses, industry / sector-specific licenses, or activity-specific licenses before any business can be legally started operating. Laws are authorized by law licenses and governed by various government agencies, statutory bodies and local authorities. Business licenses include registration, approval, license, and permit include Compliance requirements vary by industry, business operation, and location.

Business licenses can be divided into 3 different logical groups, namely:

• General license
• Sector/industry-specific licenses
• Activity specific license

General license

General licenses are the necessary licenses that will apply once investors decide to start a business in Malaysia.

The general list of licenses, which may apply to a business, includes:

• Company registration
• Income tax registration of companies and employees
• Employee Provident Fund
• Social Security Agency
• Human Resource Development Fund
• Business Premise License and Signboard License

Businesses in Malaysia need to apply for a premise business license and signboard license from the respective state authorities. Application requirements may vary according to each local authority.

Generally, the following documents are required to apply for a Business Premises License and a Signboard License, but the list of documents to apply may vary according to each local state authority:

For the company

1. Company Certificate (Form 9 / Notice Section 17) - 1 copy;
2. Details of Directors, Directors, and Secretaries (Form 49 / Notice 58) - 1 copy;
3. Previous photos of your business (front and center interior);
4. Any director's NRIC / Passport 49 form/notice as described in section 58 - 1 copy;
5. The design and color of the signboard sample (if applicable);
6. Showing the location of the photo signboard (if applicable)

Limited Liability Partnership (LLP)

1. Certificate of Article - 1 copy;
2. E-SSM Business Profile - 1 copy;
3. Previous photos of your business (front and center interior);
4. NRIC / Passport - 1 copy of any partner described in the business profile;
5. The design and color of the signboard sample (if applicable);
6. Showing the location of the photo signboard (if applicable).

    

For Enterprise (single owner/partnership)

1. Business registration certificate (Form D) - 1 copy;
2. E-SSM Business Profile - 1 copy;
3. Previous photos of your business (front and center interior);
4. NRIC's copy of any business owner/partner described in Copy 49 - 1;
5. The design and color of the signboard sample (if applicable);
6. Showing the location of the photo signboard (if applicable)

Based on the business in Kuala Lumpur, you can see the following DBKL links for more information.

Sector / industry-specific license

Sector / Industry Specific licenses are individual licenses for a specific industry or sector as specified by the government. These include major policies that govern the development of specific industries or sectors in line with the country's development policies.

Please refer to MalaysiaBiz to confirm that you should contact any government department authority regarding sector/industry specific licenses.

Some examples of sector / industry-specific licenses are:

·         License related to the manufacturing sector

·         A company with a paid-up capital/shareholder fund may apply for a confirmation letter stating that the company is exempt from licensing licenses. The applicant should submit a copy of the ICA 10 form along with a copy of the following documents: -

-          Memorandum and articles of association / constitution

-          Organization Certificate (Form 9 / Notice Section 17)

-          Registered Address (Form 44 / Notice Section 14 and Notice Section 46 (3))

·        For more information, please visit MIDA's website at http://www.mida.gov.my

        Wholesale, retail trade licenses

·        The most common license for a foreign-owned company is the Wholesale, Retail Trade (WRT) License. This WRT license applies to any foreign participation in Malaysia Distribution Trade Services (i.e. 5% or more of foreign equity), wholesalers, retailers, franchise practitioners, direct sellers, suppliers, who channel their products into the domestic market, and less channel, or less. Other representatives, including international trading companies. Prior to applying for a professional work permit, WRT license is required in all alleged business sectors. For WRT, the minimum paid-up capital requirement will be $ 1 million, with full setup of the business, a valid tenancy agreement, phone lines, etc. Please accept the official portfolio of the Ministry of Commerce, Co-operate

·         License related to the telecommunication sector

·         License associated with the broadcast area

·         License related to the oil field

·      The Malaysian founding company is keen to find and develop oil and gas reserves in Malaysia, while they will have to sign a joint production agreement with Petronas State Oil Company in Malaysia. For more information, visit the Petronas website at www.petronas.com

·         Construction-related license

·         All companies involved in construction and construction must obtain the Construction Industry Development Board (CIDB) license before joining Malaysia and undertake any construction and related activities in the country. For more information, visit the CIDB website at www.cidb.gov.my

·         License related to banking sector

·         According to the law of financial and banking institutions, २०१ Central Bank of Malaysia regulates and regulates business in Malaysia such as banking, financing, discount house, credit, and finance provision, commercial banking, deposit taking and some other financial business. For more information, visit the Bank Negara website at www.bnm.gov.my

Specific activity license

Special activity licenses are licenses that govern specific activities and can be applied to one or more industries or regions. In this type of license, the investor should follow a set of specific guidelines to protect the interests of citizens, employment, and protection of workers, the environment and the interests of the general public.

Examples of specific activity licenses:

·         Fitness certificate for certified equipment

·         Approval for Traveling Positions

·         Approval to install / resize / change air pollution control equipment (bag filters and fireplace)

·         Approval of the construction plan.

·         Sales tax license

The above information is a general guide to potential investors and business owners on the initial steps, decisions and plans of the business.