How to Start Hotel Business in Malaysia

Malaysia is one of the world top 10th rankings as Tourist Destination! Malaysia also the top no 1 in Muslim tourism in the world ranking. Malaysia welcomes foreigners to participate further liberalised of 100% foreign ownership for hotel ranking of 4 stars and above in the hotel investment for its robust tourism industry. It is very lucrative to be in the hotel business in Malaysia! 

At MalaysiaBizAdvisory, we assist foreigners to provide complete services on how to start Hotel Business in Malaysia and application of setting up the company to final obtain of various hotel tax incentives offered by Malaysia Government for 10 years tax break as pioneer status, reinvestment tax allowances for Sabah and Sarawak and incentives on hotel reinvestment as in Mida.gov.my.

How to Start Hotel Business in Malaysia – The licensing components

For foreigners who are interested to know how to start Hotel Business in Malaysia, we can guide you! As a hotelier to start operating the business activities in the hotel, there will be 4 major approvals needed. These major approvals can be applied concurrently. The Composite Licence to carry out the hotel business’ activities vary according to the hotel’s star rating.

Example, for a 5-star hotel, the  Composite Licence comprised of:

a. Hotel/lodging
b. Bar/Lounge
c. Banquet/conference hall
d. Entertainment/performance activities
e. Restaurant/coffee house
f. Swimming pool for adult and children
g. Parking lot
h. Launderette
i. Health club/gymnasium/sauna/outdoor and indoor facilities
j.  Beauty/Hair salon
k. Souvenir shop and drug-store
l. All signboard advertisements 

As for the legal aspects of starting up hotel business, on the assumption that the hotel building is completed and ready to be occupied, you are required to apply a minimum of 12 approvals to start the business depends on the rating of the hotel you intend to start. However, you may also apply for a maximum of 22 approvals, depending on the number of business activities you intend to provide in the hotel.

The 22 approvals can be categorized into 4 stages i.e. :

 For foreigners to get started a hotel business in Malaysia is an overwhelming task! At MalaysiaBizAdvisory, we assist foreigners like you on every step of the way to get your hotel business started in Malaysia. For your a new hotel which would require 22 approvals to be fully functional. This can be lengthy in the process!