Before you start a business in Malaysia, your business needs some sort of legal works. You can legally operate your business once you have Malaysian business license. The incorporation of companies in Malaysia is a comparatively simple process. The growing economy and government incentives facilitate the establishment of private companies by foreigners in the country. Foreigners who are hoping to start a business needs some sort of licensing requirements. Once you have the requirement papers you can apply for Malaysian Business license. The Malaysian government allows 100% of foreign-owned companies for registering as a privet limited company. Below I am going to describe the procedure of getting a business license in Malaysia.
Business Premise Licenses and Signboard Licenses
Company who wants to start business legally needs to apply for signboard and business premise licenses. According to each local authority the signboard and premise license may vary. All the requirement for getting a business premise and signboard license are enlisted below:
Xerox of the applicant's identity card.
Applicant Passport-sized photograph.
Photocopy of the company's M&A and Forms.
Copy of the certificate of suitability of the company's registered office.
Copy of the support letter of the fire department.
Copy of the location plan of the company's headquarters.
Photos of the business premise.
A sample of signs indicating design and colors
Here I am listing some category of company who need special license for starting a business in Malaysia.
Manufacturing: Production companies with funds of RM-2.5M or more needs to apply for manufacturing license from MIDA.
Building & Construction: All companies in this sector must obtain a license from the Construction Industry Development Board (CIDB). Before undertaking any sort of construction works, the company must need to have legal paper of CIDB.
Oil and gas industry: when entering Malaysia, companies wishing to explore and develop upstream oil and gas reserves in Malaysia are required to sign a production sharing agreement with the Petronas oil company in Malaysia.
Foreign Investment Committee Approval
Foreign investors need to get approval from Malaysian foreign investment committee for the following:
All types of proposed acquisition of foreign interest in any significant fixed assets in Malaysia
Any proposal to acquire 15% or more of the voting rights of any group of foreign interests or affiliated groups or foreign interests in a total of 30% or more of the votes of a Malaysian company
Any proposal to acquire 15% or more of the voting power of any group of foreign interest or associated group or foreign interests in the aggregate of 30%.
Business through any form of joint venture and Malaysian companies control agreement.
All mergers and acquisitions of any company and business in Malaysia or from Malaysian or foreign interests
Any other proposal to acquire assets or interest exceeding RMK 10 million from Malaysian or foreign interests
Any acquisition by Malaysian interests of shares of companies incorporated in Malaysian companies which constitute more than 50% of the voting power of the company.
In this article I have explained and discussed about the procedures of getting Malaysian business license. You can easily get the Malaysian business license by following some simple steps.