Business Licenses In Malaysia | Setup Malaysia Business

Before a company can begin to operate legally, companies must comply with some form of license, which could be a general license, a specific industry/sector license or a specific activity license. The legislation requires commercial licenses and is administered by various government agencies, legal agencies, and local authorities. Commercial licenses include registrations, approvals, licenses, and permits. Compliance requirements vary by industry, commercial activity, and location.

Commercial licenses can be classified into 3 different logical groups, namely:

• General licenses
• Sector Industry Specific licenses
• Activity Specific licenses

General Licenses

General licenses are required licenses and will be applicable once the investor has decided to start a business in Malaysia.

List of General licenses, which may be applicable to any business,

• Company Registration
• Registration of income tax for companies and employees
• Employee Pension Fund
• Social security organization
• Human Resources Development Fund
• Commercial premises licenses and sign licenses
• Companies in apply for business licenses in Malaysia premises and sign licenses of the respective State Authorities. The requirements for the application may vary according to each local authority.

In general, the following documents are necessary for the application for a Commercial Premises License and the Sign License. However, the list of documents for the application may vary according to each 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) Anyone 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 the location of the 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) Anyone Partner’s NRIC / Passport as stated in Business Profile – 1 copy;

(v) Sample of signboard indicating design and color (if applicable);

(vi) Photos showing the location of the 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 the location of the signboard (if applicable).

Sector / Industry-Specific Licenses

Sector-specific / industry-specific licenses are exclusive licenses of a particular industry or sector specified by the government. This implies important policies that controlled the development of certain industries or sectors in line with the country's development policy.

Some examples of Sector/Industry Specific licenses are:

Licenses related to the manufacturing sector

A company with a disbursed capital/shareholder fund that does not exceed RM2.5 million or less than 75 people may request a confirmation letter that the company is exempt from the approval of the manufacturing license. The applicant must submit a copy of the ICA 10 form along with a copy of the following documents:

- Memorandum and Articles of Association / Constitution

- Certificate of incorporation (form 9 / notice, section 17)

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

For more information, visit the MIDA website at http://www.mida.gov.my

Licenses related to the Wholesale, Retail Trade

The most common license required for a foreign-owned company is the Wholesale, Retail (WRT) License. This WRT license is applicable to any Foreign Participation (i.e., foreign capital at 51% or more) in the Distributive Trade Services of Malaysia, including wholesalers, retailers, franchisees, direct sellers, suppliers, who channel their products in the market national, and commission agents or other representatives, including those of international business enterprises. All commercial sectors require a WRT license before they can apply for a professional work permit. For WRT, the minimum paid-in capital requirement is RM 1 million, with the complete configuration of the company, that is, with commercial premises backed by a valid lease, telephone line, etc. See the official website of the Ministry of Internal Trade, Cooperatives and Consumerism (MDTCC) for more details on the WRT license at www.kpdnkk.gov.my

• Licenses related to the telecommunications sector
• Licenses related to the broadcasting sector
• Licenses related to the oil exploration sector
• When the Setup Company in Malaysia, companies wishing to explore and develop upstream oil and gas reserves in Malaysia must sign a joint production agreement with the Malaysian state oil company Petronas.

• Licenses related to the Construction
• All companies involved in construction and construction must obtain a license from the Construction Industry Development Board (CIDB) before joining Malaysia and before undertaking any construction and related activities in the country. For more information, visit the CIDB website at www.cidb.gov .mi

• Licenses related to the Banking Sector
• In accordance with the Financial and Banking Institutions Act of 1989, the Central Bank of Malaysia licenses and regulates businesses such as banking, money brokerage, discount houses, provision of credit and finance, commercial banking, the taking of deposits and other financial businesses. visit the Bank Negara website at www.bnm.gov.my.

Licenses for a specific activity

The specific licenses of the activity are licenses that regulate a particular activity and could be applicable to one or more industries or sectors. This category of license requires the investor to comply with specific sets of guidelines designed to protect the interest of the citizen, employment, worker safety, the environment, and the general public.

Examples of specific activity licenses are:

• Certificate of proficiency for certified machinery
• Approval for expatriate position
• Approval to install/reactivate/alter air pollution control equipment (bag filter and chimney)
• Approval of the construction plan
• Sales Tax License