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Sohaib Ikram
Sohaib Ikram serves as the Director of Emerhub in Malaysia.
A business license in Malaysia is a license issued by the local council (Pihak Berkuasa Tempatan) that authorizes the business to operate in the area. Without a business license, you are not legally allowed to start your business operations. Therefore, if you plan to start a business in Malaysia, acquiring a business license from the relevant local council office is mandatory.
In this article, we will walk you through the essentials of a business license in malaysia and how to get one to operate your business in compliance with local laws.
Overview of Malaysian Business License
When we talk about the business license, a common misconception is that the Malaysian business license is the same as the company registration certificate/certificate of incorporation issued by SSM in Malaysia. That is not the case.
A business license in Malaysia, also known as the Business Premise License or Lesen Premis in Malay, is obtained from the local council in the district where you plan to have your business office. This license certifies that your business complies with the requirements set by the local authorities and can operate in the territory.
On the other hand, the SSM registration certificate is issued when you register a company in Malaysia.
Types of Business Licenses in Malaysia
There are 3 main categories of licenses and permits in Malaysia; general licenses, industry-specific licenses, and sector-specific licenses. The business license or the Business Premise License license falls under the general license category and is required for operating most of the businesses in Malaysia.
There are various categories under the business license depending on the industry you plan to operate in and your planned business activities. Some examples of common business licenses in Malaysia include:
- Office license (Pejabat Urusan)
- Food & Beverages Restaurant License (Kedai Makanan)
- Barber Shop License (Kedai Gunting Rambut)
- Warehouse Business Premise License
Who Needs to Obtain a Business License in Malaysia
As per Malaysian regulations, any business with a physical location must obtain a business license. This includes factories, offices, warehouses, and retail shops, and more.
Operating a business without a valid business license in Malaysia can result in severe penalties. These include a fine of up to RM 20,000, confiscation of business assets, and even suspension of business operations.
Therefore, If you are planning to start a business in Malaysia, you must obtain a business license. Emerhub’s experts can handle the licensing process on your behalf to help your business stay compliant and avoid any penalties.
How to Apply for a Business License in Malaysia
As mentioned earlier, the business license in Malaysia is obtained from the local council in your relevant district and has different types depending on your planned business operations. It is not possible to obtain a business license from any other town council office. For instance, if your business location is Kulala Lampur, you can only get business license from KualaLumpur City Hall (DBKL)
Therefore, to obtain a business license, you first need to determine the local council regulating the area and the type of business license you will need.
To make it easy, Emerhub’s business advisors handle the necessary submissions on your behalf and help you obtain the business license.
Requirements to Apply for a Business License
When it comes to applying for a business license, every local council has its own set of requirements.
Here are the general requirements to apply for a business license in Malaysia:
1. Duly filled application form for Business Premises License
2. Copy of business registration issued by SSM
3. Identity document for the applicant such as an identity card or the passport
5. 4 photos, 2 from outside the business premises and 2 from the inside
To make it simple, Emerhub’s business advisors apply for the business license and the signboard license (Lesen Iklan Papan Tanda) together. The signboard license is mandatory for businesses who want to display outdoor signs. In that case, the applicant needs to to provide additional details for the signboard such as:
- 1 color signboard advertisement visual
- 1 photo of the signboard advertisement installation location
Obtain Your Business License in Malaysia with Emerhub
Emerhub helps foreign investors and entrepreneurs start their business operations in Malaysia and other Southeast Asian countries. Our local experts are well versed in Malaysian regulations and handle the entire process from company registration in Malaysia to acquiring all the necessary licenses and permits.
For more information, fill out the form below and we will put you in touch with one of our experts.
