So, you've set up a company in Malaysia but what comes next? At this juncture, you need to obtain the necessary business licenses to operate in the country. Any business operating at a physical premise; such as a shop lot, factory, or office; and/or in a specific industry must obtain a business license. Business licenses in Malaysia are categorised into three main groups that depend on your industry:

Secondly, once the expatriate post application has been approved by the relevant agency, another application must be submitted to the Immigration Department to endorse the Employment Pass. Only once this Employment Pass has been endorsed can the expatriate be hired. There are three types of expatriate posts in foreign-owned private companies. This includes key posts such as high-level managers, executive posts such as managers and professionals, and non-executive posts.

General licenses are required for any business operating at a physical location; such as a shop lot, factory, or office. This includes company registration, company and employee’s income tax registration, Employees' Provident Fund (EFP), social security organisation (PERKESO), human resources development fund (HRDF), and business premise licenses and signboard licenses.

 

Sector-specific licenses are required for companies operating in specific industries; such as manufacturing, wholesale and retail trade (WRT), telecommunications, broadcasting, oil exploration, construction, and banking as well as the food and beverage industry. Here are some noteworthy pointers.

Manufacturing companies with a paid-up capital of less than RM2.5 million or less than 75 workers may submit the following documents to be exempted from obtaining a manufacturing license:
  • Form ICA 10
  • Memorandum and articles of association/constitution
  • Certificate of incorporation (Section 17)
  • Registered address (Section 46)
However, it is compulsory for manufacturing companies that are involved in the following fields to obtain a manufacturing license:
  • High technology or projects for new manufacturing activities
  • Expansion and adaptation of agricultural projects
  • New agricultural projects
  • Expand products
  • Commercialisation of R&D findings
A wholesale and retail trade (WRT) license is most commonly required by foreign companies that are wholesalers, retailers, franchise practitioners, direct sellers, suppliers, agents or distributors of goods in the domestic market, or representatives of an international trading companies. A WRT license is needed in order to apply for a DP10 work permit with the Immigration Department of Malaysia. To apply for a WRT license, foreign companies are required to have a:
  • Minimum paid-up capital of RM1 million
  • A business location with valid tenancy agreement
  • A phone line

Companies looking to conduct oil and gas exploration in Malaysia are required to enter into a Production Sharing Agreement (PSA) with Petroliam Nasional Berhad (PETRONAS); an oil and gas company that is wholly owned by the Government of Malaysia.

Companies engaged in building and construction activities are required to obtain a license from the Construction Industry Development Board (CIDB).

Companies involved in banking, money broking, merchant banking, and other financial activities are required to obtain licenses from the Central Bank of Malaysia; Bank Negara Malaysia.

Food and beverage companies that intend to sell liquor or alcoholic beverages are required to obtain a Public House License from the nearest local authority. With validity periods ranging between six months to a year, it enables restaurants to serve liquor or alcoholic beverages from 10.00am to either 9.00pm, 10.00pm, or midnight. Furthermore, a Temporary Public House License is required if the restaurant intends to sell liquor or alcoholic beverages during a festive season.

 

Activity-specific licenses include a certificate of fitness to operate certified machinery; approval of expatriate posts; approval to install, re-locate, or alter air pollution control equipment; building plan approval; sales tax license; and fire brigade approval.

 

Not quite sure how to go about applying for the necessary licenses?
Contact our advisory desk or speak to a Dedicated Service Manager now.
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Why Choose Us?

We are second to none in providing pre- and post-investment solutions to foreign and domestic direct investors in Malaysia. Our strong presence has enabled us to not only form strategic partnerships with our clientele but also provide them with tactical advice in strategic and government-related affairs. SK International is uniquely positioned to aid your business venture with relocation, entrepreneurship, roll-outs, and operational upscaling in a productive and sustainable way due to our close working-relationships with national and regional authorities in Malaysia.

 

Ad Hoc Advisory & Management Services

We are fully aware that some of our clients have strong opinions and convictions about their investment needs. As such, they require specific services and solutions. With more than 23 years in the field and a network of reliable partners, SKI knows the ins and outs of the FDI and DDI game. We're are in a position to provide our clients with a wealth of the most up-to-date information, relevant statistics, and valuable advice so you can make the most informed decision on the market. We can also oversee the management of your entire project.

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