Business Licenses in Malaysia

Ensure that your business has all the necessary licenses and permits to operate legally. We can assist you in identifying the required licenses and handling the application process.

What is a Business License?

Obtaining a valid business license is essential to starting a business in Malaysia.

You can apply for a business license from the Pihak Berkuasa Melesen (PBM) based on your location and type of business activity. Every business is required to have a license, whether it’s a general license, industry-specific license, or activity-specific license. Business licenses are required by the legislation and administered by various government agencies, statutory bodies and local authorities. This includes registrations, approvals, permits, and other relevant licenses. Compliance requirements differ depending on the industry, business activity, and location.

JL Global Consultant can assist you in navigating the process of securing the necessary licenses for your business.

Business Licenses & Permits

Operating a business without licensing carries significant liability. It is important to understand the different types of licenses required in Malaysia.

General Licenses

General licenses are required when start up a business in Malaysia. We collaborate with our clients to provide guidance and ensure that all necessary licenses are ready. Some examples include:

  1. Company Registration
  2. Company and Employees Income Tax Registration
  3. Employees Provident Fund (EPF)
  4. Social Security Organisation (PERKESO)
  5. Human Resources Development Fund (HRDF)
  6. 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.

Sector / Industry-Specific Licenses

Certain industries or sectors require specific licenses in accordance with government policies aimed at developing particular areas of the economy. Examples include licenses related to:

  1. Manufacturing sector
  2. Wholesale/retail trade – These are licenses required when foreigners (with foreign equity at 51% and above) wish to participate a distribution trade including wholesalers, retailers, franchisors, direct sellers, suppliers (who distribute goods to the domestic market), and commission agents or other representatives including international trading companies.
  3. Telecommunication and broadcasting sectors
  4. Oil exploration sector
  5. Construction sector
  6. Banking sector

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 investor to comply with sets of specific guidelines designed to protect the interest of the citizen, employment, safety of workers, environment and general public. Examples of Activity-Specific Licenses are:

  1. Certificate of Fitness for Certified Machinery
  2. Approval for Expatriate Posts
  3. Approval to install/resite/alter Air Pollution Control Equipment (bag filter and chimney)
  4. Building Plan Approval
  5. Sales Tax License