Understand Business Licence

Understand Business Licence

Before a business can legally start operating, businesses are required to comply with some form of licensing, which could be a general licence, an industry/sector specific licence or activity specific licence. Business licences are required by the legislation and administered by various government agencies, statutory bodies and local authorities. Business licences includes registrations, approvals, licences and permits. The compliance requirements vary by industry, business activity and location.

Business licences can be categorized into 3 different logical groups, namely:

  • General licences
  • Sector Industry Specific licences
  • Activity Specific licences

General Licences
General licences are licences that are required and shall be applicable once the investor has decided to start a business in Malaysia.

List of General licences, which may be applicable to any business, include:

  • Company Registration
  • Company and Employees Income Tax Registration
  • Employees Provident Fund
  • Social Security Organisation
  • Human Resources Development Fund

Sector / Industry-Specific Licences
Sector/Industry Specific licences are licences unique to a particular industry or sector that are specified by the Government. This involves major policies that controlled the development of certain industries or sectors in line with the development policy of the country.

Examples of Sector/Industry Specific licences are:

  • Licences related to the Manufacturing Sector
  • Licences  related to the Telecommunication Sector
  • Licences related to the  Broadcasting Sector
  • Licences  related to the  Oil Exploration Sector

Activity-Specific Licences
Activity-Specific licences are licences that regulate particular activity and could be applicable to one or more Industries or Sectors. This category of licence 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 Licences are:

  • Certificate of Fitness for Certified Machinery
  • Approval for Expatriate Post
  • Approval to install/resite/alter Air Pollution Control Equipment (bag filter and chimney)
  • Building Plan Approval
  • Sales Tax Licence

The above information is a general guide towards making the initial steps, decision and planning for the intended business by potential investors and business owners.


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Last Update   05/05/2015 08:43 AM