Types Of License in Malaysia
To operate a business in Malaysia, applying a company license is a must. Business licenses include licenses, registrations, permits and approvals. The compliance requirements vary by industry, business activity and location.
Business licenses are required by the legislation and administered by various government agencies, statutory bodies and local authorities.
In Malaysia, there are three types of business licenses:
- General licenses
- Sector Industry Specific licenses
- Activity Specific licenses
General Licenses include the necessary business licenses and will apply when the investor decides to start a business in Malaysia.
List of General Licenses, applicable to any business including:
- Company Registration
- Company and Employees Income Tax Registration
- Employees Provident Fund (EPF)
- Social Security Organisation (PERKESO)
- Human Resources Development Fund (HRDF)
- Business Premise Licenses and Signboard Licenses
Businesses in Malaysia are required to apply for business premises licenses and signboard licenses from the respective State Authorities. The requirements for the application may vary according to each local authority.
Sector / Industry-Specific Licenses
In a specific industry or sector, business owner must have a industrial or sector special business license which issued by the government.
This includes the policies governing the development of a specific industry or sector in line with the development of government policy.
Examples of Industrial / Sector Special License are:
- Licenses related to the Manufacturing Sector
- Licenses and Permission related to the Distributive Trade
- Foreign Participation (with foreign equity at 51% and above) in the Malaysian Distribution Trade Sector which includes wholesalers, retailers, franchisors, direct sellers, suppliers who distribute goods to the domestic market, and commission agents or other representatives including international trading companies need to obtain permission from the Ministry of Domestic Trade and Consumer Affairs to operate.
- Please refer to official portal of Ministry of Domestic Trade and Consumer Affairs (KPDNHEP) for further details on Guidelines On Foreign Participation In Distributive Trade Services in Malaysia or click here for other licensing management services provided.
- Licenses related to the Telecommunication Sector
- Please refer to the Malaysian Communications and Multimedia Commission’s Official Portal (MCMC) for further information on the telecommunications sector.
- Licenses related to the Broadcasting Sector
- Please refer to the Malaysian Communications and Multimedia Commission’s Official Portal (MCMC) for further information on the broadcasting sector.
- Licenses related to the Oil Exploration Sector
- Licenses related to the Construction Sector
- For further information, please visit Official Website of CIDB.
- Licenses related to the Banking Sector
- For further information, please visit Official Website of Bank Negara.
- License under Department BLESS, Ministry Of Entrepreneur Development (MED)
- BLESS system is One Stop Online Service or Online Service Center for information (BLESS Portal) and to apply for license / permit / permission (BLESS Application) related to business in Malaysia.
- The Business Licensing Electronic Support System also provides Ministries/Agencies services to process and approve online applications of licenses/permits/approvals.
- Please click on the BLESS Division Official Portal for an online application.
- License under the Department of Occupational Safety and Health Malaysia (DOSH)
- Please click MyKKP for online registration .
- License under the National Water Services Commission (SPAN)
- Please click on the e-Permit for registration and an application online.
Activity-Specific licenses are licenses that regulate particular activities and could be applicable to one or more Industries or Sectors.
This category of license 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 Licenses are:
- Certificate of Fitness for Certified Machinery
- Approval for Expatriate Posts
- Approval to install/resite/alter Air Pollution Control Equipment (bag filter and chimney)
- Building Plan Approval
- Sales Tax License
The above information is a general guideline for making the initial steps, decision and planning for the intended business by potential investors and business owners.
Please click on SMEInfo Portal for information and guidelines on business licensing.
As a recruiter company, we need a business license either. In this industry, there are three types of licenses, which is License A, License B, License C.
|License A||License B||License C|
|Associating local job seekers in the country||Associate local and foreign job seekers, and foreign domestic workers in the country||Associates local and foreign job seekers, and domestic non-citizen workers including foreign domestic workers|
By getting a license, business owners need to pay for some fees which is paid-up capital, guarantee fee and more. Different category of license have different charges.
The purpose of holding a guarantee fee is to make sure that all business owner won’t break the industry rules.
Once they break, the government have the rights to confiscate the guarantee fee from the business owner.
Table below shows the amount of guarantee fee:
|Category license||Paid-up Capital
|Guarantee Fee to establish new CAW (RM)|
Why do the government needs to collect guarantee fee from business owner?
To help assisting victims who are abused or stranded abroad from other country by paying their transport fee, accommodation, food & beverage and others.
Other than that, different categories have permission on activities either
|No.||Allowed activities||License A||License B||License C|
|1.||Provide recruitment service to local workers only||Y||Y||Y|
|2.||Provide recruitment service to local workers and foreign domestic workers only||–||Y||Y|
|3.||Provide recruitment activities to local workers, foreign domestic workers and non-citizen workers in accordance with established laws, policies and procedures||–||–||Y|
|4.||Allow to represent employers in the application, recruitment and placement of foreign domestic workers (including dealings with government departments such as KDN, JTK, JIM and others)||–||Y||Y|
|5.||Assist local workers to overseas employment||–||Y||Y|
|6.||Held training / job adjustment sessions for employees not exceeding three days||Y||Y||Y|
|7.||Held career seminars, career consultants, career advisors, job carnivals||Y||Y||Y|
Onestopmanpower is a license C holder for a worker supply agency which approved by Malaysia Labor Department.
We have 12 years of experience in this industry since 2009. We serve more than thousands of SMEs and big corporations in Malaysia. Hence, we are really familiar with all the application steps.
We do provide one-stop professional services from A to Z to help every employer to get their foreign workers or local workers who suit their industry. Solving a part of their HR jobs is one of our responsibility.
Other than that, we also help local and foreign candidates to look for a company which fits their requirements.
Thus, as a responsible and experienced license C agency, our mission is to strive for the best to all our clients.
Feel free to Whatsapp us if you have any enquiry.
Our business hour: Monday to Friday (8:30 am to 6 pm)