5 Key Malaysian Business Licenses For Singaporean Foreign Sdn Bhds

Although setting up a foreign owned company in Malaysia comes with minimal requirements, you can’t do business until you’ve applied for the necessary business licenses!

Thing is, certain licenses can come with extra conditions that add significantly to total costs.

To prevent nasty surprises, below are five most commonly required licenses needed by foreign ventures in Malaysia, broken down into:

• businesses that need them

• Issuing government body

• key requirements, and

• fees, and time estimates

We’ve avoided niche-specific licenses (clearly if you want to open a clinic, you’ll need a clinic license) and kept each entry brief with links to full guides for those who want to learn more.

Let’s begin.

Composite License

Sample DBKL composite license.

This is a premise and signboard permit allowing the business to legally operate from a retail or industrial outlet. All other licenses on this list require a composite license to apply, so this comes first!

For more details on two top spots for Singaporean businesses read the following: 

• Johor Bahru: Guide to MBJB business licenses

• Kuala Lumpur: Guide to DBKL business licenses

Miscellaneous PBT Licenses

A snapshot of Malaysia’s many PBTs.

Government fee & time estimate: Too much variation!

 

In addition to premise and signboard licenses, PBTs issue other commonly required business licenses including:

 

• entertainment licenses

• alcohol licenses

• car park reservations

• licenses for other forms of advertising, and

• premise renovation permits

 

With planning, many of these licenses can be applied for concurrently with a composite license or immediately after to minimise wait time.

 

For more details, check out this Malaysian Local Council license FAQ.

WRT / USS License

Sample WRT license.

Wholesale, Retail, and Trade (WRT) licenses are required for foreign companies with at least 51% foreign ownership that sell products to local individuals or businesses. Alternatively, those that provide services to local buyers must get an Unregulated Services Sector (USS) license. 

 

 

For details, read this full guide to WRT licenses.

Foreign CIDB Contractor Certificate

Sample WRT license.

Foreigners involved in any aspect of building works in Malaysia (including engineering, interior design, plumbing, architectural design, and manufacturing or supply) must obtain a foreign contractor certificate.from the Construction Industry Development Board (CIDB)

 

Staff and technical requirements are described in this guide to foreign CIDB registrations.

MIDA / MITI Manufacturing License

Singaporeans going into manufacturing will need a manufacturing license or manufacturing license exemption from Malaysia’s Ministry of Investment, Trade, and Industry (MITI).

 

Which one depends on the size of your operation including staff headcount and paid up capital.

 

For clarity, MITI grants the license, but applications are reviewed and approved / rejected by an agency under them called the Malaysian Investment Development Authority (MIDA).

 

See this guide to MIDA manufacturing licenses to find out more.