Before a business can legally start operating in Malaysia, businesses are required to comply with some form of licensing, which could be a general license, an industry/sector specific license or activity specific license. Business licenses are required by the legislation and administered by various government agencies, statutory bodies and local authorities. Business licenses include registrations, approvals, licenses and permits. The compliance requirements vary by industry, business activity and location.
MalaysiaBiz Portal provides information regarding starting a business, business registration and licensing/permit application services from the authorized parties in a single platform.
Business license searching is available at MalaysiaBiz Portal.
Information and guidance on business licensing also available through SMEinfo Portal.
Business licenses can be categorized into 3 different logical groups, namely:
General licenses
Sector Industry Specific licenses
Activity Specific licenses
1- General Licenses
General Licenses include the necessary licenses and will apply when the investor decides to start a business in Malaysia.
List of General Licenses, applicable to any business including:
Company Registration
Company and Employees Income Tax Registration
Employees Provident Fund (EPF)
Social Security Organisation (PERKESO)
Human Resources Development Fund (HRDF)
Business Premise Licenses and Signboard Licenses
Businesses in Malaysia are required to apply for business premises licenses and signboard licenses from the respective State Authorities. The requirements for the application may vary according to each local authority.
2- Sector / Industry-Specific Licenses
Industrial / Sector Special License is a license for a specific industry or sector detailed by the Government. This includes the policies governing the development of a specific industry or sector in line with the development of government policy.
Examples of Industrial / Sector Special License are:
Licenses related to the Manufacturing Sector
For further information, please visit the Official Website MIDA or click MIDA e-Services for online services provided such as Manufacturing licenses, Incentives, Expatriate Posts, Duty Exemptions or purchase statistics online.
Licenses and Permission related to the Distributive Trade
Foreign Participation (with foreign equity at 51% and above) in the Malaysian Distribution Trade Sector which includes wholesalers, retailers, franchisors, direct sellers, suppliers who distribute goods to the domestic market, and commission agents or other representatives including international trading companies need to obtain permission from the Ministry of Domestic Trade and Consumer Affairs to operate.
Please refer to the official portal of the Ministry of Domestic Trade and Consumer Affairs (KPDNHEP) for further details on Guidelines On Foreign Participation In Distributive Trade Services in Malaysia or click here for other licensing management services provided.
Licenses related to the Telecommunication Sector
Please refer to the Malaysian Communications and Multimedia Commission's Official Portal (MCMC) for further information on the telecommunications sector.
Licenses related to the Broadcasting Sector
Please refer to the Malaysian Communications and Multimedia Commission's Official Portal (MCMC) for further information on the broadcasting sector.
Licenses related to the Oil Exploration Sector
For further information, please visit the Official Website of Petronas or click here for the online application.
Licenses related to the Construction Sector
For further information, please visit the Official Website of CIDB .
Licenses related to the Banking Sector
For further information, please visit the Official Website of Bank Negara.
License under Department BLESS, Ministry Of Entrepreneur Development (MED)
BLESS system is One Stop Online Service or Online Service Center for information (BLESS Portal) and to apply for license/permit/permission (BLESS Application) related to business in Malaysia.
The Business Licensing Electronic Support System also provides Ministries/Agencies services to process and approve online applications of licenses/permits/approvals.
Please click on the BLESS Division Official Portal for an online application.
License under the Department of Occupational Safety and Health Malaysia (DOSH)
Please click MyKKP for online registration .
License under the National Water Services Commission (SPAN)
Please click on the e-Permit for registration and an application online.
3- Activity - Specific Licenses
Activity-Specific licenses are licenses that regulate particular activities and could be applicable to one or more Industries or Sectors. This category of license requires investors to comply with sets of specific guidelines designed to protect the interest of the citizen, employment, the safety of workers, the environment and the general public.
Examples of Activity-Specific Licenses are:
Certificate of Fitness for Certified Machinery
Approval for Expatriate Posts
Approval to install/resite/alter Air Pollution Control Equipment (bag filter and chimney)
Building Plan Approval
Sales Tax License
The above information is a general guideline for making the initial steps, decisions and planning for the intended business by potential investors and business owners.
Source: MyGovernment
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