Business License Malaysia

What is a Business License? (Lesen Perniagaan)

A business license (Lesen perniagaan) is a permit required to operate a business in Malaysia. It is a legal document that grants the holder the right to conduct business activities within the country. The purpose of a business license is to ensure that businesses comply with all applicable laws and regulations. DBKL Lesen is the most common referred government authority for anyone running a startup who seeks signboard approval.

Who Needs to Apply for a License?

All businesses in Malaysia are required to apply for the relevant business licenses. This includes businesses of all sizes, from small sole proprietorships to large multinational corporations (MNCs). The specific licenses required will vary depending on the type of business, the industry, and the location of the business.

Types of Business License in Malaysia

There are three main types of business licenses in Malaysia:

  1. General licenses: These licenses are required for all businesses, regardless of their type or industry. They include licenses for things like business registration, taxation, and social security.
  2. Sector/industry-specific licenses: These licenses are required for businesses in certain industries, such as food and beverage, construction, and healthcare.
  3. Activity-specific licenses: These licenses are required for businesses that engage in certain activities, such as importing and exporting, manufacturing, and providing professional services.
There are three main types of business licenses in Malaysia: General licenses, Sector/industry-specific licenses, and Activity-specific licenses.

Industry-Specific Licenses

These licenses are necessary to make sure that your businesses comply with the specific regulations and standards of the industry. Common industry-specific licenses include:

 

  1. Food and Beverage License: This license is essential for businesses handling food or beverages, ensuring compliance with food safety regulations and hygiene standards.
  2. Construction License: This license is required for construction companies, guaranteeing adherence to building codes, safety regulations, and environmental standards.
  3. Healthcare License: This license is necessary for businesses providing healthcare services, ensuring compliance with medical regulations, patient safety protocols, and ethical practices.
  4. Financial Services License: Mandatory for businesses operating in the financial sector, ensuring compliance with financial regulations, consumer protection laws, and anti-money laundering practices.
  5. Education License: Required for institutions offering educational services, ensuring adherence to educational standards, curriculum requirements, and teacher qualifications.

Activity Specific Licenses

Activity-specific licenses are mandatory for businesses engaging in specific activities, regardless of their industry or sector. These licenses aim to regulate activities that may pose potential risks or require specialized expertise. Examples of activity-specific licenses include:

  1. Import-Export License: This license is required for businesses importing or exporting goods, ensuring compliance with customs regulations, trade policies, and product safety standards.
  2. Manufacturing License: This license is mandatory for businesses involved in manufacturing, ensuring adherence to product quality standards, environmental regulations, and safety protocols.
  3. Professional Services License: This license is necessary for businesses providing professional services, such as law, accounting, or engineering, ensuring compliance with professional standards, ethical practices, and consumer protection laws.
  4. Environmental Permit: This permit is required for businesses engaging in activities that may impact the environment, ensuring compliance with environmental regulations, waste management practices, and pollution control measures.
  5. Fire Safety Certificate: This certificate is mandatory for businesses operating in certain premises, ensuring compliance with fire safety regulations, emergency evacuation plans, and fire hazard mitigation measures.

Examples of License Type and Processing Time

Here’s a summary of each license type, their processing time to get approval, and frequent examples of operation grant:

Type of License

Examples

Timeline

General License

  • Signboard 
  • Office
  • Shoplot

2-3 Weeks

Industry-specific licenses

  • Food and Beverage
  • Construction
  • Healthcare
  • Financial
  • Education

4-6 Weeks

Activity-specific licenses 

  • Import-Export License
  • Manufacturing License
  • Professional Service License
  • Environmental Permit
  • Fire Safety Certification (BOMBA)

6-8 Weeks

How to Apply Business License in Malaysia? (Lesen Perniagaan - DBKL)

The process for applying for a business license (Lesen Perniagaan – DBKL) in Malaysia will vary depending on the type of license required. Here’s the general steps from the public voices:

  1. Gather the required documentation: This will typically include things like the business registration certificate, the company’s tax identification number, and proof of insurance.
  2. Complete the application form: The application form can be obtained from the relevant government agency.
  3. Submit the application: The application can be submitted in person, by mail, or online.
  4. Pay the application fee: The application fee will vary depending on the type of license required.

Specific Requirement of Business License

The specific requirements for a business license usually ask for:

  • The business must be registered with the Companies Commission of Malaysia (SSM).
  • must have a valid tax identification number.
  • must have the necessary insurance coverage.
  • The business must comply with all applicable laws and regulations.

How Much is Business License?

The cost of a business license depends on the location of the business. For example, businesses located in major cities such as Kuala Lumpur and Penang can expect to pay higher fees than businesses located in smaller towns or rural areas.

Fees Involved

The fees involved general fees which includes but not limited to:

  • Application fee
  • Stamp duty
  • Processing fee

Timeline for Approval

The timeline for approval for a business license will vary depending on the type of license required. However, the general timeline is as follows:

  • General licenses: 2-3 weeks
  • Sector/industry-specific licenses: 4-6 weeks
  • Activity-specific licenses: 6-8 weeks

Local Council

Business License Fee

Dewan Bandaraya Kuala Lumpur

RM150-RM1,000

Majlis Perbandaran Ampang Jaya

RM100

Majlis Perbandaran Selayang

RM120

Majlis Perbandaran Petaling Jaya

RM150

Majlis Perbandaran Subang Jaya 

RM180

 

Penalties of not having business license 

Operating a business without the proper licenses is a serious offense in Malaysia, and the consequences can be severe. Businesses that fail to obtain the necessary licenses can face hefty fines, imprisonment, and even the closure of their operations.

Fines

The amount of the fine for operating a business without a license will vary depending on the type of license required and the severity of the offense. In general, fines can range from RM2,000 to RM50,000.

Closure of Business

In the most serious cases, businesses that operate without a license may be ordered to shut down. This can be a devastating blow for businesses, especially those that have invested significant time and resources into their operations.

Examples of Missing License Penalties

Here are some examples of penalties that have been imposed on businesses for operating without a license:

  • A restaurant owner was fined RM10,000 for operating without a food and beverage license.
  • A construction company was fined RM50,000 for operating without a construction license.
  • A retail store was ordered to close down for operating without a business license.

Avoiding Penalties

Businesses can avoid the penalties of operating without a license by ensuring that they obtain the necessary licenses before commencing operations. The process of obtaining a business license can be complex and time-consuming, so it is important to start the process early. Businesses can seek assistance from a business consultant or lawyer to help them navigate the application process.

External Resources

Signboard License

A signboard license is a permit required to display a signboard or other advertising material in Malaysia. It is a legal document that grants the holder the right to erect and maintain a signboard in a specific location. 

 

Specific Requirements 

Signboard licenses in Malaysia must comply with Dewan Bahasa dan Pustaka (DBP) laws. DBP is the government agency responsible for the development and promotion of the Malay language. As such, it has the authority to regulate the use of Malay on signboards. All signboards must use standard Malay. This means that the spelling, grammar, and punctuation must be correct.

The DBP also has the authority to approve or reject signboard designs. This means that businesses must submit their signboard designs to the DBP for approval before they can display them. The DBP will reject designs that do not comply with its guidelines.

Application Fee for Signboard License

The application fee for a signboard license will vary depending on the location of the signboard. However, the typical fee is between RM100 and RM500. The processing time for a signboard license application is typically 2-4 weeks.

Why Accounting.my - Trusted Licensing Service in Malaysia

With Accounting.my, you will be benefit from:

  • Complexity of the application process: We help you navigate the application process and ensure that all of the necessary documentation is submitted correctly. No back and forth hectic news.
  • Time-consuming: We save you time by handling the application process for you, so you can focus on building your business plan.
  • Complete on time and Accuracy: We help you avoid these penalties by ensuring that your application is legal-friendly and checked.

Get Help with our Business License Service

Our Accounting.my partnered Business License service is up to go, reach us at +6011-3967 2445 or accmy333@gmail.com and admin@accounting.my to start!

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Contact Information

For any inquiries or to schedule an appointment, please reach out to us using the contact details below:

  • Phone: [+6011-1671 2713]
  • Email: [accmy333@gmail.com]
  • Address: [27-2-1, Jalan Medan Putra 6 Medan Putra Business Centre, Bandar Sri Menjalara, 52200 Kuala Lumpur, Wilayah Persekutuan Kuala Lumpur]

Map Direction to Accounting.my Malaysia

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Common FAQs for Business License

The processing time for a business license application in Malaysia will vary depending on the type of license required. However, the general timeline is as follows:

  • General licenses: 2-3 weeks
  • Sector/industry-specific licenses: 4-6 weeks
  • Activity-specific licenses: 6-8 weeks

In addition to the general requirements, there may be specific requirements for obtaining a business license depending on the type of license required. These requirements may include:

  • Meeting certain qualifications or experience requirements
  • Obtaining additional permits or approvals
  • Passing an inspection

Business licenses in Malaysia typically expire after one year. To renew your business license, you will need to submit a renewal application to the relevant government agency. The renewal application process is similar to the initial application process.

If your business license application is rejected, you may be able to appeal the decision. The appeals process will vary depending on the type of license required.

There are a number of resources available to help you with business licensing in Malaysia. These resources include:

  • The Companies Commission of Malaysia (SSM) website
  • The Ministry of Domestic Trade and Consumer Affairs (KPDNHEP) website
  • The Malaysia Business Licensing Guide
  • Business consultants and lawyers

Still need answers? Just give us a call, and we’ll be here to take your call right away. Tell us about your business needs.

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