If you are planning to start a business in Malaysia in the IT sector, it is mandatory to secure an Information and Communication Technology (ICT) license. This license ensures that your company complies with national regulations in telecommunication and protects your users in Malaysia.
In this article, we will walk you through the importance of securing an ICT license, eligibility criteria and requirements, and the application process.
What is an ICT License in Malaysia?
An ICT license is a legal authorization that allows your business to operate within the communications and multimedia sector in Malaysia. The Malaysian Communication and Multimedia Commission (MCMC) is responsible for issuing this license under the Communications and Multimedia Act 1998 (CMA).
This license not only allows you to legally operate your IT business, you can also access various government support programs, including grants and tax incentives aimed at promoting the ICT sector.
Types of ICT Licenses in Malaysia
Licensing Categories Based on Activities
As per the CMA, the licensing activities in Malaysia are classified into 4 categories:
- Network Facilities Providers – entities that manage physical infrastructure such as satellite stations, broadband cables, and telecommunications equipment.
- Network Service Providers – offers basic connectivity and bandwidth for various applications such as internet access and telecommunications fall under this category.
- Application Service Providers – businesses providing services like voice, data, content-based services, and e-commerce functionalities.
- Content Application Service Providers – specialized subset that involves traditional broadcasting and online publishing services.
Types of ICT Licenses in Malaysia
In Malaysia, there are two primary types of ICT licenses issued under the Communications and Multimedia Act 1998:
| Type of ICT License | Description | Requirements |
|---|---|---|
| Individual | - Required for businesses that provide specific telecommunications or multimedia services that need close regulatory oversight. - Issued to entities involved in activities that have a significant impact on the market or require stringent compliance with regulatory standards. | - A completed Form A along with a RM10,000 application. - Detailed Business PlanRecent Financial Statements - Technical specifications on the infrastructure that will be used to deliver services. - Company profile about the company’s structure, ownership, and key personnel. - Any additional information or documents requested by the MCMC. |
| Class | - "Light-handed" regulatory approach designed for businesses that provide services with lower risks or impacts on the public. - Allows multiple service providers to operate under a general framework without the need for extensive regulatory scrutiny. - Suited for smaller operators or those engaged in less critical services. | - A completed Form D with RM2,500 registration fee. - Service description and operational plan of services offered. - Company profile about the company’s structure, ownership, and key personnel. - Any additional information or documents requested by the MCMC. |
How to Apply for an ICT License in Malaysia
Application Process for Individual ICT License
Obtaining an Individual ICT license in Malaysia is governed by guidelines set by the MCMC. Here’s how the process works:
- Submit a completed Form A on MCMC’s online portal together with all the necessary documentation to the MCMC along with a RM10,000 non-refundable application fee.
- Upon receiving the application, MCMC will review the submitted documentation. The MCMC typically reviews the application within 60 days after receiving all necessary information.
- After the review, MCMC will make a recommendation to the Minister of Communications regarding the application.
- Once approved, you will receive your Individual ICT License, allowing you to legally operate within the specified telecommunications or multimedia services as outlined on your application. However, if rejected, you will receive a written notice detailing the reasons for rejection.
Application Process for ICT Class License
To apply for a Class ICT License, you must be a foreign individual who’s not a permanent resident in Malaysia or a foreign company. Local entities and Malaysian citizens are also eligible to apply for this license. Here is the process for applying a Class ICT License in Malaysia:
- Submit a completed Form D with supporting documents and a non-refundable RM2,500 registration fee.
- You may need to provide additional documents as requested by MCMC including a company profile and operational plans.
- The MCMC will review the application and supporting documents. The registration under a Class License is typically processed within 14 days for new registrations.
- Once approved, the Class License is valid for one calendar year. Before the expiration of this license, the licensee must submit a fresh application along with the relevant fees and documents to ensure continued compliance.
Emerhub’s local experts will handle the ICT licensing application on your behalf for both Individual and Class ICT licenses. We will prepare all the necessary documents to ensure accuracy and avoid unnecessary delays.
For more information, fill out the form below and we will put you in touch with our local experts.
Frequently asked questions
What is an ICT License in Malaysia?
The Information and Communication Technology License aka the ICT License is required for businesses planning to operate in the IT-related sectors in Malaysia.
Are foreign companies eligible to apply for the ICT License in Malaysia?
Foreign-owned companies can apply for an ICT license in Malaysia. According to the Communications and Multimedia Act 1998, foreign companies are classified as eligible applicants. Both Individual and Class license is open to foreign entities, including partnerships and sole proprietorships. Similarly, foreign individuals who are not permanent residents in Malaysia can also apply for a Class License.
What should I do if my ICT License application is rejected?
If your ICT license application in Malaysia is rejected, you should take the following steps: It is advisable to talk to our local experts who will prepare necessary documents and handle submissions on your behalf to help you successfully obtain the ICT license.