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.
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.
There are three main types of business licenses in Malaysia:
There are three main types of business licenses in Malaysia: General licenses, Sector/industry-specific licenses, and Activity-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:
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:
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 |
| 2-3 Weeks |
Industry-specific licenses |
| 4-6 Weeks |
Activity-specific licenses |
| 6-8 Weeks |
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:
The specific requirements for a business license usually ask for:
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.
The fees involved general fees which includes but not limited to:
The timeline for approval for a business license will vary depending on the type of license required. However, the general timeline is as follows:
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 |
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.
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.
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.
Here are some examples of penalties that have been imposed on businesses for operating without a license:
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
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.
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.
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.
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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:
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:
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:
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