What are the General Licences for setting up a business in Malaysia?
General licences are licences that are required and shall be applicable once the investor has decided to start a business in Malaysia. List of General licences, which may be applicable to any business, include:- Company Registration
- Company and Employees Income Tax Registration
- Employees Provident Fund
- Social Security Organisation
- Human Resources Development Fund
- Business Premise Licenses and Signboard Licenses
What is Sector / Industry-Specific Licences?
Sector/Industry Specific licences are licences dedicated to a particular industry or sector that are specified by the Government. This involves major policies that controlled the development of certain industries or sectors in line with the development policy of the country.
Examples of Sector/Industry Specific licences are:
- Licences related to the Manufacturing Sector: for further information, please visit MIDA’s website at http://www.mida.gov.my.
- Licences related to the Wholesale, Retail Trade: the most common license required for a foreign owned company is Wholesale, Retail Trade (WRT) License. This WRT license is applicable to any Foreign Participation (i.e. foreign equity at 51% and above) in the Malaysia Distributive Trade Services include wholesalers, retailers, franchise practitioners, direct sellers, suppliers, who channel their goods in the domestic market, and commission agents or other representatives including those of international trading companies. Kindly refer to official portal of the Ministry of Domestic Trade, Co-operatives and Consumerism (MDTCC) for more details.
- Licences related to the Oil Exploration Sector: when setting up a Company in Malaysia, companies that want to explore and develop upstream oil and gas reserves in Malaysia are required to sign a production sharing agreement with Petronas. For further information, please visit www.petronas.com
- Licences related to Construction: companies involved in Building and Construction must obtain a licence from the Construction Industry Development Board (CIDB) before incorporating in Malaysia and before undertaking any construction-related activities in the country. Visit CIDB’s website at www.cidb.gov.my for more information.
- Licences related to the Banking Sector: Under the Banking and Financial Institutions Act 1989, the Malaysian Central Bank (Bank Negara Malaysia) licenses and regulates businesses such as banking, money brokering, provisions of credit and finance, merchant banking, deposits and other financial businesses. For further information, please visit Bank Negara’s website at www.bnm.gov.my.
To find out more on other sector/industry-specific licenses, please contact us with your requirements.
What is Activity-Specific Licences?
Activity-Specific licences are licences that regulate a particular activity and is applicable to one or more Industries or Sectors. This license category requires the investor to comply with a specific set of guidelines that have been designed to protect the interest of its citizens, the safety of its workers, the environment and general public.
Examples of Activity Specific Licences are:
- Certificate of Fitness for Certified Machinery
- Approval for Expatriate Post
- Approval to install/relocate/alter Air Pollution Control Equipment
- Building Plan Approval
- Sales Tax Licence
The above information is a general guide towards making the initial steps, decision and planning for the intended business by potential investors and business owners.
For more information regarding business licensing assistance in Malaysia, fill in the contact form.
