【Practical Guide to Company Registration in Malaysia】List of Licenses and Permits Required for Different Industries
Registering a company with the Companies Commission of Malaysia (SSM) is only the first step. To operate legally, businesses in Malaysia must often apply for specific licenses or permits depending on the nature of their operations.
These licenses are regulated by different government authorities and may involve detailed approval processes, eligibility requirements, and foreign equity restrictions. Operating without the necessary licenses may lead to fines, and in serious cases, forced business closure.
The FOZL Malaysia team has compiled this checklist to help companies planning to enter the Malaysian market understand which industries require special permits—and how to prepare for them in advance.
Licenses Required in 9 Key Industries
1.Manufacturing
Manufacturing remains one of Malaysia’s economic pillars, accounting for approximately 23 percent of GDP in 2024. It covers sectors such as electronics, chemicals, and food production. According to the Malaysian Investment Development Authority (MIDA), companies with annual production value of RM500,000 or more, or with 50 or more employees, must apply for a Manufacturing License (ML). Businesses involved in food, pharmaceutical, or chemical production must also apply for product safety certifications from the Ministry of Health (MOH) or the Ministry of Science, Technology and Innovation (MOSTI), including HALAL, HACCP, or MeSTI.
2.Distributive Trade, Import and Export
As a regional trade hub, Malaysia requires foreign-owned businesses to obtain specific licenses to operate in wholesale or retail. The authority responsible is the Ministry of Domestic Trade and Cost of Living (KPDN). Companies must obtain a Wholesale Retail Trade License (WRT License). Under the amended Trade Development Act (2023), foreign shareholding is capped at 70 percent, except in specific remote regions such as Sabah and Sarawak, where up to 100 percent may be allowed. Applicants must submit notarized shareholder structure and a business plan.
3.Media
The media sector is subject to dual regulation due to the sensitivity of content and information security. Printed and published content must obtain a publishing license from the Ministry of Home Affairs (KDN). Broadcasting and digital platforms must apply for a CASP license from the Malaysian Communications and Multimedia Commission (MCMC). Authorities focus on content compliance, platform security, and proper data management.
4.Oil and Gas
This is a national strategic industry regulated directly by PETRONAS, Malaysia’s state-owned oil company. Businesses must obtain exploration or downstream processing licenses. All projects must be executed under a Production Sharing Contract (PSC) with PETRONAS. Foreign investors typically operate through joint ventures, with Malaysian partners holding at least 30 percent equity.
5.Construction
All construction companies must be registered with the Construction Industry Development Board (CIDB). Companies are classified from Grade G1 to G7 based on the scale of projects they are allowed to undertake. For example, projects valued at more than RM500,000 require a company to hold at least G3 certification. Starting 2025, CIDB will strengthen enforcement. Unlicensed construction activities may result in suspension or forfeiture of performance bonds up to 10 percent of project value.
6.Banking and Finance
Malaysia’s banking and financial services industry is tightly regulated by Bank Negara Malaysia (BNM) and the Securities Commission (SC). Required licenses include commercial bank licenses, leasing and financing licenses, and electronic payment system approvals. Traditional license approval processes take 12 to 18 months, while digital banking or fintech applicants must also submit detailed risk and compliance reports.
7.Commerce and E-Business
With the digital economy contributing over 22 percent to Malaysia’s GDP in 2024, this sector is jointly managed by the Ministry of Entrepreneur Development and Cooperatives (MEDAC) and the Malaysia Digital Economy Corporation (MDEC). Businesses involved in technology services or software must apply for a tech business license from MEDAC. E-commerce platforms must register with MDEC. Companies that qualify under the Digital Free Trade Zone (DFTZ) initiative may enjoy corporate tax exemptions for five to ten years, with rates as low as zero percent.
8.Workplace Safety and Health
All businesses involved in manufacturing, construction, or mechanical operations must comply with safety regulations set by the Department of Occupational Safety and Health (DOSH). Required permits include factory registration, machinery certificates, and site safety approvals. Starting in 2025, DOSH will place special emphasis on the management of hazardous chemicals, employee training records, and personal protective equipment compliance.
9.Water Services
Water-related services such as water supply and sewage treatment fall under public service regulation by the National Water Services Commission (SPAN). Required licenses include permits for water supply and sewage operation. Only joint ventures with foreign ownership not exceeding 49 percent are eligible to apply. In addition, all applicants must pass a public service capability assessment conducted by SPAN.
Not sure which license your business needs?
The FOZL Malaysia team is ready to assist you in identifying the appropriate licenses, preparing your application documents, and liaising with the relevant government authorities.
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