
What You Should Know About Business Licences in Malaysia

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Hire NowIn Malaysia, it is essential to have a valid business license before starting a business. These licences are grouped into three categories:
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General licenses
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Sector/Industry-specific licenses
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Activity-specific licenses
Although you have registered your company via the Companies Commission of Malaysia (SSM), you still need to have the necessary licences to run your business, such as permits, approvals, and registrations.
The government agencies, local authorities and statutory bodies administer the business licences in this country.
1. General Licenses
General Licenses include the required licenses and apply when one decides to start a business.
List of General Licenses, applicable to any business including:
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Company Registration
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Company's & Employees' Income Tax Registration
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Social Security Organisation (SOCSO)
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Employees' Provident Fund (EPF)
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Human Resources Development Fund (HRDF)
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Business Premise Licenses & Signboard Licenses
Business owners must apply for business premises licenses and signboard licenses from the State Authorities. The application requirements may vary based on each local authority.
2. Sector/Industry-Specific Licenses
These licences only apply to specific sectors that the government has specified.
These licences exist because of the policies that control the development of particular industries and sectors.
Here are the examples of sector/industry-specific industry licences in Malaysia:
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Licenses related to the Manufacturing Sector (MIDA)
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Licenses and permission related to the Distributive Trade (KPDNHEP)
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Licenses related to the Telecommunication Sector (MCMC)
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Licenses related to the Broadcasting Sector (MCMC)
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Licenses related to the Oil Exploration Sector (Petronas)
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Licenses related to the Construction Sector (CIDB)
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Licenses related to the Banking Sector (Bank Negara)
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Licenses under BLESS, a one-stop online service centre for business licence applications.
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Licenses under the Department of Occupational Safety and Health Malaysia (DOSH)
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Licenses under the National Water Services Commission (SPAN)
Those who wish to enter the manufacturing sector must first obtain a business licence with MIDA,
3. Activity-Specific Licenses
Activity-Specific licenses regulate particular activities and could apply to one or more industries/sectors. This license category requires businesses to comply with sets of guidelines meant to protect citizens' interests, employment, the workers' safety, the environment and the general public.
Here are the examples of Activity-Specific Licenses:
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Certificate of Fitness for Certified Machinery
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Sales Tax License
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Expatriate Posts Approval
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Building Plan Approval
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Air Pollution Control Equipment Approval for installation/relocation/alteration.
You can find more information on business licencing at SMEInfo Portal. You can click here to find new business licenses.
What documents do you need before applying for a business licence?
These are the documents you need to apply for a business licence. Keep in mind that requirements may vary depending on the licence category you are applying for:
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A copy of your identity card or passport.
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A passport-sized photograph,
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A copy of the rental or tenancy agreement/sale and purchase agreement.
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Photographs of the business premise.
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Photographs of the intended location for the company's signboard. The applicant must also provide samples indicating the colour and design of the signboard.
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Copy of the Fire Department's support letter.
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Copy of the Certificate of Fitness for the business premise.
Source: MyGovernment
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