Business License in Malaysia

Before commencing operations, businesses in Malaysia are required to obtain some form of license, which could be a general license, an industry-specific license, or an activity-specific license. The business license is a legal requirement regulated by various government agencies, statutory bodies, and local authorities. The application process includes registration, approval, and issuance of the license, with compliance requirements varying based on the industry, business activities, and location.

Business licenses are divided into three categories, namely：

• General License
• Industry-Specific License
• Activity-Specific License

General License

The general license is a license that investors must apply for after deciding to conduct business in Malaysia.

The general license applicable to all businesses includes：

• Company registration
• Corporate and Employee Income Tax registration
• Employee Provident Fund (EPF)
• Social Insurance
• Human Resources Development Fund
• Business Premises License and Signboard License
  
  • In Malaysia, businesses are required to apply for Business Premises License and Signboard License from their respective state governments, with application requirements possibly varying depending on the local authorities.

Typically, the application for Business Premises License and Signboard License requires the following documents. However, the list of required documents may vary depending on each local government agency.

For companies,
（i）Certificate of Incorporation (Form 9 / Section 17 Notice) – 1 copy.
（ii）Submission of particulars of directors, managers, and secretaries (Form 49 / Section 58 Notice) – 1 copy.
（iii）Photos of your business premises (frontage and interior).
（iv）Identification card or passport of any one director as mentioned in Form 49 / Section 58 Notice – 1 copy.
（v）Sample signboard indicating design and color (if applicable).
（vi）Photos showing the location of the signboard (if available).

Limited Liability Partnership (LLP)
（i）Certificate of Registration – 1 copy.
（ii）E-SSM Business Profile – 1 copy.
（iii）Hotos of your business premises (frontage and interior).
（iv）Identification card or passport of any one partner as stated in the business profile – 1 copy.
（v）ample signboard indicating design and color (if applicable).
（vi）Photos showing the location of the signboard (if available).

For enterprises (sole proprietorship/partnership) :
（i） Business Registration Certificate (Form D) – 1 copy.
（ii）E-SSM Business Profile – 1 copy.
（iii）Photos of your business premises (frontage and interior).
（iv）Copy of the Identification Card (NRIC) of any one proprietor/partner as stated in Form 49 – 1 copy.
（v）Sample signboard indicating design and color (if applicable).
（vi）Photos showing the location of the signboard (if available).

Industry-Specific License

Industry-Specific License refers to licenses designated by the government, specific to certain industries, involving the primary policies regulating the development of certain industries based on national development policies.

Examples of industry-specific licenses are as follows:：

• Licenses related to manufacturing industry
  
  • Companies with a paid-up capital/shareholder funds not exceeding RM 2.5 million or fewer than 75 employees are eligible to apply for an exemption confirmation letter for manufacturing licenses. Applicants should submit a copy of Form ICA 10 and copies of the following documents:
  • Company Memorandum and Articles of Association
  • Company Registration Certificate (Form 9 / Section 17 Notice)
  • Registered Address (Form 44 / Section 14 Notice and Section 46(3) Notice)

欲知更多详情，请浏览马来西亚投资发展局（MIDA）的网站http://www.mida.gov.my。

• Licenses related to wholesale and retail trade
  
  • The most common license required for foreign-owned companies is the Wholesale and Retail Trade (WRT) License. The WRT License is applicable to Malaysian distribution trade services with foreign participation (i.e., foreign equity ownership of 51% and above), including wholesalers, retailers, franchisees, direct sellers, suppliers, commission agents, or other representatives involved in selling goods in the domestic market, as well as representatives of international trading companies. The aforementioned industries must apply for a WRT License before applying for a professional work permit. The minimum paid-up capital requirement for applying for a WRT License is RM 1 million, and the company must establish a complete business premises, including holding a valid tenancy agreement, telephone line, etc. 
• Licenses related to the telecommunications industry
• Licenses related to the broadcasting industry
• Licenses related to the oil exploration industry
  
  • Companies intending to explore oil and gas in Malaysia must sign a Production Sharing Agreement with Petronas, the national oil company of Malaysia.
• Licenses related to the construction industry
  
  • All companies involved in construction projects must obtain a license issued by the Construction Industry Development Board Malaysia (CIDB) in order to register and carry out construction-related activities in Malaysia.
• Licenses related to the banking industry
  
  • Under the Banking and Financial Institutions Act 1989, the Central Bank of Malaysia is responsible for issuing licenses related to the banking industry and regulating banks, money brokers, discount houses, credit and financing, commercial banks, deposits, and other financial businesses.

Activity-Specific License

Activity-Specific License is a license used to regulate specific activities applicable to one or more industries. These licenses require investors to comply with a set of specific guidelines aimed at protecting citizen interests, employment, employee safety, environment, and public safety.

Examples of activity-specific licenses are as follows:

• Certificate of Mechanical Fitness
• Approval for Foreign Employees
• Approval for Installation/Modification of Air Pollution Control Equipment (Bag Filters and Chimneys)
• Approval for Building Plans
• Sales Tax License