(updated on 22 Sept 2024)
What is a business license?
Business licenses can be categorized into 3 different logical groups, namely:
1. General licenses
2. Sector Industry Specific licenses
3. Activity Specific licenses
1- General Licenses
General Licenses include the necessary licenses and will apply when the investor decides to start a business in Malaysia.
List of General Licenses, applicable to any business including:
- Company Registration
- Company and Employees Income Tax Registration
- Employees Provident Fund (EPF)
- Social Security Organisation (PERKESO)
- Human Resources Development Fund (HRDF)
- 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.
2- Sector / Industry-Specific Licenses
Industrial / Sector Special License is a license for a specific industry or sector detailed by the Government. This includes the policies governing the development of a specific industry or sector in line with the development of government policy.
Examples of Industrial / Sector Special License are:
- Licenses related to the Manufacturing Sector
- For further information, please visit Official Website MIDA or click MIDA e-Services for online services provided such as Manufacturing License, Incentives, Expatriate Posts, Duty Exemptions or purchase statistics online.
- Licenses and Permission related to the Distributive Trade
- Foreign Participation (with foreign equity at 51% and above) in the Malaysian Distribution Trade Sector which includes wholesalers, retailers, franchisors, direct sellers, suppliers who distribute goods to the domestic market, and commission agents or other representatives including international trading companies need to obtain permission from the Ministry of Domestic Trade and Consumer Affairs to operate.
- Please refer to official portal of Ministry of Domestic Trade and Cost of Living (KPDN) for further details on Guidelines On Foreign Participation In Distributive Trade Services in Malaysia.
- Licenses related to the Telecommunication Sector
- Please refer to the Malaysian Communications and Multimedia Commission’s Official Portal (MCMC) for further information on the telecommunication
ssector.
- Licenses related to the Broadcasting Sector
- Please refer to the Malaysian Communications and Multimedia Commission’s Official Portal (MCMC) for further information on the broadcasting sector.
- Licenses related to the Oil Exploration Sector
- For further information, please visit Official Website of Petronas or click here for the online application.
- Licenses related to the Construction Sector
- For further information, please visit Official Website of CIDB .
- Licenses related to the Banking Sector
- For further information, please visit Official Website of Bank Negara.
viii. License under Department BLESS, Ministry Of Entrepreneur Development (MED)
- BLESS system is One Stop Online Service or Online Service Center for information (BLESS Portal) and to apply for license / permit / permission (BLESS Application) related to business in Malaysia.
- The Business Licensing Electronic Support System also provides Ministries/Agencies services to process and approve online applications of licenses/permits/approvals.
- Please click on the BLESS Division Official Portal for an online application.
ix. License under the Department of Occupational Safety and Health Malaysia (DOSH)
- Please click MyKKP for online registration.
x. License under the National Water Services Commission (SPAN)
Please click on the e-Permit for registration and an application online.
3- 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:
Sales Tax License
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
Sources: https://www.malaysia.gov.my/portal/content/30342


