Manufacturing License: A Brief Insight on Application & Requirements

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Manufacturing License: A Brief Insight on Application & Requirements

November 17, 2021 incorp 0 Comments

Reading Time: 3 Minutes –

A Manufacturing License is more than just your average piece of paper…

 

As each Malaysian business is required to possess a specific industry-related document prior to operating. Activities related to the making, altering, blending, treating, ornamenting, or finishing of any substance or material, with purpose of either being sold, utilized, transported, delivered, disposed, or even assembled are classified under the Manufacturing License category. 

 

This document had been proposed by the Malaysian Investment Development Authority (MIDA), an agency under MITI (or Ministry of International Trade & Industry) charged with promoting and coordinating Malaysia’s industrial development sector.

 

In this article, we’ll be exploring the various requirements to be eligible in acquiring a Manufacturing License along with possible Exemptions and Incentives that go along with it. With that, let’s begin…

 

Factors for Eligibility

To be eligible for the said license individuals, in accordance with Industrial Coordination Act 1975, must be:

– Engaged in any form of manufacturing operations (such as the examples above) with either a working capital/shareholders’ fund of RM2.5 million.

– Employing 75 or more full-time paid employees, with full-time paid employees being defined as individuals normally working in the establishment for at least 6 hours a day, along with 20 days for each of the 12 consecutive months per annum while also earning a salary.

 

Factors for Eligibility

To be eligible for the said license individuals, in accordance with Industrial Coordination Act 1975, must be:

– Engaged in any form of manufacturing operations (such as the examples above) with either a working capital/shareholders’ fund of RM2.5 million.

– Employing 75 or more full-time paid employees, with full-time paid employees being defined as individuals normally working in the establishment for at least 6 hours a day, along with 20 days for each of the 12 consecutive months per annum while also earning a salary.

 

License Requirements

However, there are cases where certain fulfilled requirements enable some companies to be exempted from the ICA (or Industrial Coordination Act). This allows you to skip a number of standard processes one normally has to go through, elevating certain hassles in the process towards attaining a Manufacturing License. These requirements include:

– Milling of oil palm fresh fruits into crude oil

– Production and processing of rubber latex into a myriad of activities such as latex, rubber sheets and scraps, modified rubber, or any form of unvulcanized rubber by-products.

– Milling of paddy into rice.

 

Corporate Requirements for License

In conjunction to being eligible for a Manufacturing License, one would also be required to observe the Capital Investment per Employee (CIPE) Ratio that includes:

– Having at least around the RM140,000.

– Employing 80% of local Malaysian personnel.

 

License Application

Hence, those keen in applying for your company a Manufacturing License can do so via accessing the following link, www.mida.gov.my/home/forms-&-guidelines-for-manufacturing-sector/posts/. There, you can register your company’s details which takes approximately 4 weeks, according to MIDA’s Client Charter. 

Following, an interim approval letter would be sent to you. Upon arrival, the said company owner would need to provide the necessary documentations prior to the Manufacturing License being issued out.

Which is why we understand and empathize such a process can be both physically and mentally draining, having to prepare and wait for the successful approval of your 

So, why not give yourself that well-deserved peace of mind, and allow our experienced partners at Incorp take the brunt of having to worry for you.

 

Equipped with 38 years of experience in company secretarial matters, we can assure partnering with Incorp is a sure guarantee in securing you a stress-free mind. On top of that, we also provide other quality company secretarial related services such as up-to-date professional advisory that helps your company stay in compliance with the regulations provided by SSM (Suruhanjaya Syarikat).

 

Interested? Please feel free to connect with us via either our email or WhatsApp and we’ll revert to you as soon as possible: –

Email: secretarial@elegant.com.my

WhatsApp: 017-2727118

#MidaMalaysia #MitiMalaysia #ManufacturingLicense #MalaysiaCompany #SendirianBerhad #SdnBhd #SendirianBerhad #Incorp #Elegant Management #Ssm

 

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