Types of  Malaysia Industry Licenses for Foreigners

Industry licenses are a license issued by a regulator of the industry to regulate the main business nature of the company intended to do. Foreigners who intend to set up a Malaysia Private Limited Company (Sdn Bhd) need to know the various types of Malaysia Industry Licenses to apply and qualify for their business activities.

The 100% foreign owned company often not be allowed for most types of trades without local Malaysians’ participation (in terms of shareholding and directorship). It is stricter for foreigners to own industry license for local Malaysia Sdn Bhd company compare to Labuan company. Malaysia Sdn Bhd company is mainly targeting local Malaysia market. Hence, the Malaysia government would need to protect the interest of locals policies in place permit only “unique business” or manufacturing business with higher paid-up capital of minimum RM1 million to RM 2.5 million allowed for 100% foreign participation. There is an exception to certain industries for lower paid-up capital such as information technology, biotech and medical permissible for 100% foreign ownership.

Besides the Industry License, the foreigners will require to apply for other types of Malaysia’s local town council business licenses. The industry and town council licenses requirement and application procedure also applies to 100% local Malaysians owned companies.

Examples of the various types of Malaysia local business industry licenses are as follows:

The condition of approval for the above licenses may subject to the degree of local Malaysians participation on the Directorship and/or Shareholder or the paid-up capital in the company.

The most common industry license needed by foreigners is Wholesale, Retail Trade WRT License in Malaysia. This license is applicable to the non-resident company (100% foreign ownership) permission to participate in retail, franchise, restaurant, trading, import, export, and consultancy businesses. The WRT license approval only applicable for “unique” types of trade only. 

[For complete info on WRT License – click here!]

Other categories of Malaysia’s business licenses are issued by the Malaysia Company Commission, Local Town Councils (such as DBKL, MPAJ, etc) and Fire Brigade Departments may also apply to foreigners who intend to operate restaurants, factories, and retail stores. 

The approval processing time for industry licenses applications vary between 1 month to 6 months for each type of license. Most of the time, the relevant ministry will conduct an inspection of the premise before the final issue the approval of the license.

As a foreigner, before you start your business in Malaysia, it is advisable to have a complete understanding of the type of licenses required for your business. We provide complete solutions for hassle-free, convenient to avoid a costly mistake, starting from the very beginning when you intend to form a Malaysian Private Limited Company (SDN BHD)

For Labuan company, there is no restriction in 100% foreign ownership without the involvement of local Malaysian partner and as long as you are qualified, you can apply for the industry license. Only 15 industry licenses issued by Labuan FSA and all other businesses do not require industry license.

The paid capital range from RM50,ooo to RM10 million depends on the type of license. All other business can start with as low as-as USD1 paid-up capital under Labuan company without the need of industry license. Here is the industry license list:

Check with us the type of business licenses you may require for your business set up in Malaysia and what is the requirements to get approvals from various authorities. Contact us at +603-2181 2882 or whatup +6012 608 9809 or email contact@malaysiabizadvisory.com. We “simplify your business investment” in Malaysia!