Starting a business in Malaysia involves navigating a range of regulatory requirements. This guide provides detailed information on obtaining necessary permits and licenses, tailored to help you comply with both national and regional regulations.
General Business Registration
Before engaging in business activities, you must register your business and obtain the relevant licenses:
- Company Registration: Register your business with the Companies Commission of Malaysia (SSM) to receive your company registration number.
- Business Licensing: Depending on your business type, you may need specific licenses from agencies such as the Malaysian Investment Development Authority (MIDA) for manufacturing and export services.
- Goods and Services Tax (GST) Registration: Required for businesses exceeding the annual sales threshold, managed by the Royal Malaysian Customs Department.
Specific Industry Licenses
Certain industries in Malaysia are highly regulated and require specific licenses:
- Food and Beverage: A license from the Ministry of Health is necessary for businesses involved in food preparation and sale.
- Construction: The Construction Industry Development Board (CIDB) issues licenses for businesses engaging in construction activities.
- Education: Private educational institutions must be licensed by the Ministry of Education.
- Financial Services: Financial institutions require licenses from Bank Negara Malaysia (BNM).
Environmental Permits
Businesses that impact the environment require permits to ensure compliance with environmental regulations:
- Environmental Impact Assessment (EIA): Necessary for projects that could significantly affect the environment, regulated by the Department of Environment.
- Waste Management License: Required for companies that handle, treat, or dispose of industrial waste.
Regional and Local Licensing
Local governments in Malaysia may impose additional requirements depending on the business location:
- Local Council Business Permits: Necessary for businesses operating within certain municipal boundaries.
- Hawkers License: Required for street vendors and is issued by the local council.
Steps to Obtain Business Licenses in Malaysia
The process for obtaining business licenses involves several steps:
- Identify the specific licenses required for your business based on industry and location.
- Submit the necessary applications along with required documents and fees to the appropriate authorities.
- Comply with any inspections or additional requirements set forth by the licensing bodies.
- Receive your licenses, noting that many will require periodic renewal based on regulations.
