Understanding of Business License in Malaysia
Updated: Feb 11
Starting a business in Malaysia requires you to first register your business with the Suruhanjaya Syarikat Malaysia (SSM). This step is essential for any business type, whether it's a sole proprietorship, partnership, or a Sendirian Berhad (Sdn Bhd). After completing this registration, you must also obtain various other licenses and permits.
Business licenses can be divided into 3 main categories, which are:
General Licenses
Starting a business in Malaysia requires obtaining general licenses, which are essential for entrepreneurs to comply with local regulations and legal frameworks. These licenses represent the government's official authorization for individuals or companies to legally conduct business in the country.
Business Premise License MalaysiaBiz
Signboard License
Business Premise License
In order to start the business operation, you need to apply business license from the respective local council (list of local authority in Malaysia)
Signboard License
A signboard license is a permit granted by local authorities in Malaysia, enabling you to legally display a signboard for your business. This is a mandatory requirement for all businesses in Malaysia.
Signboard Guideline
There is a specific design guidelines that your signboard must adhere in order to be approved and licensed by the local authorities. Operating without a valid signboard license or with a non-compliant signboard can result in fines and even the removal of your signboard.
Sector / Industry-Specific Licenses
Sector or industry-specific licenses are established by various government bodies to regulate certain types of economic activities, protect public interest, maintain industry standards, and align with national development policies.
Licenses related to the Manufacturing Sector MIDA
Licenses and Permission related to the Distributive Trade KPDN
Licenses related to the Telecommunication Sector MCMC
Licenses related to the Broadcasting Sector MCMC
Licenses related to the Oil Exploration Sector PETRONAS
Licenses related to the Construction Sector CIDB
Licenses related to the Banking Sector BANK NEGARA
License under Department BLESS, Ministry Of Entrepreneur Development (MED)
License under the Department of Occupational Safety and Health Malaysia (DOSH) MyKKP
License under the National Water Services Commission (SPAN) e-Permit
Activity-Specific Licenses
Activity-specific licenses in Malaysia are regulatory requirements that govern various sectors and activities. These licenses ensure that businesses operate within a framework of established guidelines, promoting compliance and accountability.
Example of Activity-Specific Licenses are:
Certificate of Fitness for Certified Machinery
Approval for Expatriate Posts
Approval to install/resite/alter Air Pollution Control Equipment (bag filter and chimney)
Building Plan Approval
Sales Tax License MySST
Conclusion
In Malaysia, it is essential for every business to apply for and secure the necessary licenses to operate legally. This involves not just one permit but a layered system of registrations, approvals, and permits that differ depending on the business type and its specific activities.
Securing the appropriate licenses is essential for a compliant and successful business, starting with the initial company registration with SSM, obtaining a premise and signboard license from your local council, and potentially acquiring additional permits specific to your industry or activities.
