by 
15th July 2024
Business Premise Licence for Factory or Warehouse in Malaysia
Learn about the essential business premise license for factories and warehouses in Malaysia, including types, application processes, and consequences of non-compliance.
To start a business in Malaysia, you must possess a valid business license. Pihak Berkuasa Melesen (PBM) will accept applications for business licenses according to your business location and activity.
Whether it is a general license, an industry-specific license, or an activity-specific license, all companies must have at least one. Registrations, approvals, licenses, and permissions fall under this category.
The regulations for compliance change depending on the sector, type of companies, and region. Foreign nationals who want to establish a private company in Malaysia should be aware of the type of license that must be obtained.
What Are the Different Types of Business Licenses Malaysia You Need to Know
Businesses that operate without the necessary licensing bear a significant amount of liability. It is essential to understand the various licenses required in Malaysia to begin a business in Malaysia.
General Licenses
General Licenses include the necessary licenses and will apply when the investor decides to start a business in Malaysia. List of general licenses that apply to all businesses:-
- 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 (rental or sale and purchase agreement is needed)
Businesses in Malaysia are required to submit applications to the appropriate local authority for business premises permits and signboard licenses. Every local government may have different application criteria.
Industry Specific Licenses
An industry-specific license is a permit for a particular industry or sector that the government has identified. This comprises the regulations that control the growth of a specific industry or sector in accordance with the changes in governmental policy.
Here is the list of some Special License examples including the governance body respectively according to industry available in Malaysia:-
- Manufacturing – Manufacturing License from Malaysian Investment and Development Authority (MIDA).
- Distributive Trade – Wholesale and Retail Trade (WRT) License for Trading, Import and Export, Consultancy, and Restaurant Business Management from Malaysian Ministry of Domestic Trade and Consumer Affairs (MDTCA) or KPDNKK.
- Telecommunication and broadcasting – Publication License for Magazines and Books / Broadcasting License for Music, Singing, TV, and Radio from Malaysian Communications And Multimedia (MCMC).
- Banking – Central Bank License for Banking, Financing, and Leasing from Bank Negara Malaysia.
- Construction – Construction Industrial Development Board and Engineering License from Construction Industry Development Board (CIDB).
- Oil Exploration – Business Licensing & Procurement from Petronas.
Activity Specific Licenses
Licenses that control specific activities and may apply to one or more sectors or industries are known as activity-specific licenses. For this license, the investor must abide by detailed rules created to safeguard the public interest, employment, worker safety, environment, and citizen interest.
Examples of Activity-Specific Licenses are:-
- Certificate of Fitness for Certified Machinery
- Approval for Expatriate Posts
- Authorization to install/resite/alter Air Pollution Control Equipment
- Building Plan Approval
- Sales Tax License
How to Apply for Factory or Warehouse Business Premise License in Malaysia
Factory or Warehouse Business Premise Licenses have normally involved the Local Authority Licensing Department and 3 external departments which are Department of Occupational Safety and Health (DOSH), Department of Environment (DoE) and Fire & Rescue Department (BOMBA).
These 3 external departments must be approved before continuing with the Local Authority Licensing Department.
Documents Needed by the Department of Occupational Safety and Health (DOSH)
- Key plan, site plan, and location plan
- Architectural plan including the location of machinery and equipment shown
- Paid-up capital and annual sales turnover
- Workers detailComplete list of machinery and equipment with details
- Main materials to be used
- Types of wasted materials whether solid, liquid or gas (if any)
- Brief description of waste handling and waste disposal
Documents Needed by the Department of Environment (DoE)
- Key plan, site plan and location plan
- Architectural plan including the location of machinery and equipment shown
- Complete list of machinery and equipment with details
- Filled out AS PAT form (Preliminary Site Assessment for Development Project) which includes:
- Type of application
- Land use in accordance with Planning Zone
- Conceptual plan (if applicable)
- Raw materials used and product
- Schedule of operation
- Production process with a relevant diagram attached
- Fuel supply, energy and process water usage information
- Pollution information with pollutant types stated and point of emission/discharged indicated in process flow diagrams
- Waste disposal process
Documents Needed by the Fire & Rescue Department (BOMBA)
- Key plan, site plan and location plan
- Architectural plan including the location of machinery and equipment shown
- Occupant load calculation
- Fire appliances access indicated
- Location of fire hydrant shownArchitectural plan of change/addition of structure
- Active and passive fire safety installation
Local Authority Licensing Department
The application process and requirements for Factory or Warehouse Business Premise Licenses may vary among different Local Authority Licensing Departments, but letters of support from DOSH, DoE, and BOMBA are required.
The Consequences of Not Having the Correct Permits and Licenses for Your Business
It’s no secret that businesses need the correct permits and licenses to operate. But what are the consequences of not having them? Let’s explore some of the potential penalties business owners face if they don’t have the appropriate permits and licenses.
Forced to Close
Should a business remain working without a permit, the government may have it shut down. Now and again, licenses can be obtained. Should the local authority decline the long desired permit, it may take a year or more for the business then to revive.
Penalties and Fines
It’s illegal to operate without a permit, especially depending on what the business is, the area, and their requirements for authorization. For example, an accountant who consults without the appropriate authorization is considered a small offence in contrast to an over-the-street shipping company without a permit.
The accountant might face fines, charges and possible back expenses from the local authority. The shipping company might deal with fines or costs from a local jurisdiction as well as from the state and federal.
Tarnished Reputation
In the event that a business is operating without a permit, this may provide an occasion for nearby customers to feel qualms about the business’ ethical or even practical capacity to work. The customers may then create the impression, if a business does not follow laws to work lawfully, it does not follow consumer orders either.
Get the Right Permits and Licenses Related to Your Business With MY Industrial Specialist
Before you can begin operating your business in Malaysia, you’ll need to obtain the correct permits and licenses from the relevant authorities. The process of obtaining a business premise license for a factory or warehouse can be daunting, but our team at MY Industrial Specialist is here to help.
If you’re looking to set up a factory or warehouse in Malaysia, WhatsApp us today – we’ll be happy to help you through the process and make sure everything is taken care of correctly.
Our expertise ensures you get a property that meets your specifications and budget. We stay updated on the latest trends and insights, helping you spot strategic locations and suitable industrial properties. Contact us at myindustrialspecialist for more information and to start your factory investment journey.
