In Malaysia, you must have a business license to conduct business legally. Companies have to get licensed to operate within the local laws and guidelines. Securing the correct license helps ensure you follow the rules and regulations for Malaysian businesses, both large and small.
A business license ensures that your company follows the law, and it also identifies your business. This means that your business is watched over and governed by the relevant officials to prevent anything illegal and to look after your customers.
Depending on the kind of business you choose, you must apply for a certain type of license. Certain businesses are required to get permits, but others are fine with only obtaining a business license. You will find below the most common types of licenses.
Learning about the Required Conditions for a Business License
Understand the conditions and required papers before starting your business license application in Malaysia.
To get a business license, owners should verify that they meet the given criteria. You should be at least 18, have a registered business entity like a sole proprietor, partnership, or company, and not have any criminal history.
If you want to get a business license in Malaysia, you must submit the following paperwork:
Identification issued by the government, such as the MyKad (Malaysian national ID card) or a foreign passport, should be shown by the business owner.
The company is required by law to register with SSM. Registration documents, along with details like the registration number, should be provided for a sole proprietorship or a partnership.
You must select the type of business, get all the necessary paperwork, and submit your application for a business license. Below are the process how it works:
Step-by-Step Guide to Business License Application
The first thing to do when starting the application process is to determine the type of business. This phase allows you to determine the license you should have. Here are some organizations that are found in Malaysia’s business world:
As soon as you have picked your business structure, you have to register it with the SSM. You may complete the process either at SSM’s offices or online. You will need to give your business information and cover the required expenses.
When all the documents are collected, you can present your business license application. Applications are usually accepted at the appropriate government agency.
After you have applied, you are required to pay the fees to get licensed. The cost of fees depends on whether you are starting a business in a city, a rural area, or an industrial sector.
The licensing body will look after your application. This process depends on the type of business license and may take only a few days or much longer.
The local councils hand over these licenses to businesses operating within their community. Such places include retail shops, restaurants, and street vendors.
Companies operating in healthcare, food services, and education have to obtain specific licenses. Such licenses are provided by the proper authorities from either the federal or state level and prevent violating specific regulations in each industry.
Firms regulated by federal authorities for telecommunications, banking, and finance must have federal licenses.
Although it is straightforward to obtain a business license in Malaysia, some issues could still arise.
Sometimes, the problem is caused by submitting forms or documents with incomplete or incorrect details. To stay on track, every form and document should be filled in correctly and handed in promptly.
It may take some time to get approval for certain business licenses, especially in areas that the government regulates. Don’t rush and keep up with your application’s progress.
Depending on the nature of the business, you may need to renew your license yearly or every few years. It is important to monitor your renewal date so you do not face penalties or other business issues.
Usually, the process of renewing a business license is less complicated than applying for the first time. Still, you might need to send in an application and cover any necessary renewal fees.
If you miss the renewal date for your business license, you may face various fines or even have your business operations stopped. Renew your business on time to comply with regulations.
It is essential to have a valid business license to start business operations in Malaysia, which includes licenses, permits, and approvals. HL Khoo Group provides expert application services to assist businesses in obtaining the necessary licenses, The following are examples of Business License Application Services:
With HL Khoo Group, business owners can simplify the licensing process and ensure compliance with Malaysian regulations. Let us assist you in navigating the licensing steps, saving you time and ensuring your business is legally recognized.
The cost of a business license varies depending on the type of business, location, and industry. It can range from a few hundred to several thousand Malaysian Ringgit.
Yes, foreign nationals can apply for a business license in Malaysia. However, certain types of businesses may require a local partner or specific documentation.
The processing time for a business license application can vary, but most applications are processed within 1-2 weeks. However, more complex licenses may take longer.
Operating a business without a valid license can lead to penalties, fines, or even business closure. It’s essential to comply with all legal requirements.
Generally, business licenses are not transferable. If you sell or transfer your business, the new owner will need to apply for a new license.
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