Got your business incorporated? Great! That means it’s time to get the business rolling, right? WRONG! You see… Despite having your company successfully incorporated by SSM (Suruhanjaya Syarikat Malaysia), there’s still other registrations and approvals to be considered such as Company and Employees Income Tax Registration (LHDN), Employees Provident Fund (EPF), Social Security Organisation (PERKESO), and Human Resources Development Fund (HRDF).
Yet, one other matter of concern pertaining to licenses is still missing… Hence, for our article today, we’ll be covering on one of these particular licenses that’s dubbed, Business Premise & Signboard Licenses (where both Business Premise License and Signboard License usually go hand-in-hand). With that, let’s begin…
What is Business Premise License & Signboard License?
Business owners can acquire both copies of these licenses from their respective state authorities prior to starting their businesses although requirements for application may vary between each local authority. Generally, local business owners would have the privilege of experiencing quicker confirmations and less stringent conditions to meet. On the other hand, additional requisites would have to be met by foreign applicants, such as having a partnership with local representatives for example, as without one, it could drag the process longer!
In general, Malaysia has the following two business licenses which are namely: –
i. General Licenses
ii. Sector-Industry & Activity Specific Licenses
Although in this version of the article, we’ll be conducting further analysis into the “General License” type, along with its supporting details and requirements.
According to the Companies Act, all companies are regulated by the Companies Commission of Malaysia (SSM). In operating business in a physical location (office, shops, etc.) and in specific to certain industries, every company must obtain a business license. Locally owned companies would generally experience quicker approvals and less stringent requirements in comparison with foreign owned companies.
Foreign owned companies are often asked if they have local representatives, and without one, the process might drag on for a longer time. As it goes, while complete foreign ownership is permitted, if you are in an industry that requires licenses, running your business in Malaysia might be more difficult than your counterparts.
Requirements in Applying for the License
To apply for one, a list of the following business[DTWT1] premise related documents will need to be prepared, consisting of a copy of each of the following: –
a. Documents:
i. A Complete Set of SSM-Related Forms:
Form 9 (Certificate of Incorporation), Form 24 (Notification of Change in the Register of Members), Form 44 (Notice Of Situation Of Registered Office And Of Office Hours And Particulars Of Changes), and Form 49 (Return Giving Particulars in Register of Directors, Managers, and Secretaries and Changes of Particulars))
*(Also known as Super-Form as per Companies Act 2016) ii. Memorandum & Articles of Association (M&A) (Also known as Constitution as per Companies Act 2016) iii. Business Premise-Related Documents:
(Tenancy/Rental Agreement or Sales & Purchase (S&P) Agreement, Photographs of your business premise, Location Plan of your company’s business premise, Photographs of the intended location of your company’s signboard, Certificate of Fitness for business premise, and Fire Department’s support letter)
b. Business License Documents:
Assessment Receipt (Taksiran Cukai)
c. Signboard License Prerequisites;
Which the signboard should:
(State the nature of business in Malay language (Bahasa Malaysia), Be approved of its placement by the town council, Ensure it isn’t mounted over any glass structure, window, façade, or obstruct any view or walkway, avoid visuals representing alcoholic beverages, cigarettes, or indecent photographs)
As for cost, pricing would be valued at RM3000 for a new application and RM1500 for renewal (although this may vary between local authority).
Venue of Submission
Business Premise License application and prerequisites can simply be submitted to either of the following venues that includes: Dewan Bandaraya Kuala Lumpur (DBKL), Majlis Bandaraya Petaling Jaya (MBPJ), or other local authorities.
Application Processing Period & Validity
Upon submission of the documents, the[ applicant(s) would need to wait close to a week, PROVIDED no essential documents are found missing. This is also affected based on the type of industry license that the business owner has applied for (pertains to small and medium stores as well as retail stores).
During the submission, keep in mind that you should have included the following essential documents such as the Assessment Receipt (Cukai Taksiran), that’s issued by your respective company premise’s town council, along with your signboard having been approved by the Institute of Language and Literature (Dewan Bahasa dan Pustaka).
NOTE:The authoritative bodies issuing the business license will inspect your business premises prior to distributing out the license.
Repercussions for Not Having a License
Failure to comply with regulations related to the license, as stated by Companies Act 2016 would result in either of the following repercussions on said business owner such as:-
– Being forced by authorities to halt all business operations,
– Fined a hefty sum of RM30,000,
– Loss of reputation and credibility,– Or worse, all the above!
Which is why, staying compliant in terms of document preparations is an essential part to fulfill prior to procuring a business premise license to avoid the possible cost-heavy setbacks mentioned earlier! However, you don’t have to do it all alone…
With 38 years of industrial experience in the field of company secretarial matters, Incorp is your trusted go-to business partner for all your business needs, backed by a team of highly qualified professionals, providing premium, quality services ranging from due diligence, incorporation, preparation of company resolution, and more.
Interested? Please kindly email us your queries via our email or WhatsApp located below and we’ll revert to you as soon as possible: –
Your Brief Guide in Applying for Business Premise License
Got your business incorporated? Great! That means it’s time to get the business rolling, right? WRONG! You see… Despite having your company successfully incorporated by SSM (Suruhanjaya Syarikat Malaysia), there’s still other registrations and approvals to be considered such as Company and Employees Income Tax Registration (LHDN), Employees Provident Fund (EPF), Social Security Organisation (PERKESO), and Human Resources Development Fund (HRDF).
Yet, one other matter of concern pertaining to licenses is still missing… Hence, for our article today, we’ll be covering on one of these particular licenses that’s dubbed, Business Premise & Signboard Licenses (where both Business Premise License and Signboard License usually go hand-in-hand). With that, let’s begin…
What is Business Premise License & Signboard License?
So… What exactly is a Business Premise and Signboard License? Well, its a document that’s REQUIRED by both SSM and Companies Act 2016 (CA2016) in order to legalize your claim over a physical venue (office, shops, etc.) to run business operations. Alternatively, it’s also known as either a “composite license” or “trade license”.
Business owners can acquire both copies of these licenses from their respective state authorities prior to starting their businesses although requirements for application may vary between each local authority. Generally, local business owners would have the privilege of experiencing quicker confirmations and less stringent conditions to meet. On the other hand, additional requisites would have to be met by foreign applicants, such as having a partnership with local representatives for example, as without one, it could drag the process longer!
In general, Malaysia has the following two business licenses which are namely: –
i. General Licenses
ii. Sector-Industry & Activity Specific Licenses
Although in this version of the article, we’ll be conducting further analysis into the “General License” type, along with its supporting details and requirements.
According to the Companies Act, all companies are regulated by the Companies Commission of Malaysia (SSM). In operating business in a physical location (office, shops, etc.) and in specific to certain industries, every company must obtain a business license. Locally owned companies would generally experience quicker approvals and less stringent requirements in comparison with foreign owned companies.
Foreign owned companies are often asked if they have local representatives, and without one, the process might drag on for a longer time. As it goes, while complete foreign ownership is permitted, if you are in an industry that requires licenses, running your business in Malaysia might be more difficult than your counterparts.
Requirements in Applying for the License
To apply for one, a list of the following business[DTWT1] premise related documents will need to be prepared, consisting of a copy of each of the following: –
a. Documents:
i. A Complete Set of SSM-Related Forms:
Form 9 (Certificate of Incorporation),
Form 24 (Notification of Change in the Register of Members), Form 44 (Notice Of Situation Of Registered Office And Of Office Hours And Particulars Of Changes), and Form 49 (Return Giving Particulars in Register of Directors, Managers, and Secretaries and Changes of Particulars))
*(Also known as Super-Form as per Companies Act 2016)
ii. Memorandum & Articles of Association (M&A) (Also known as Constitution as per Companies Act 2016)
iii. Business Premise-Related Documents:
(Tenancy/Rental Agreement or Sales & Purchase (S&P) Agreement, Photographs of your business premise, Location Plan of your company’s business premise, Photographs of the intended location of your company’s signboard, Certificate of Fitness for business premise, and Fire Department’s support letter)
b. Business License Documents:
Assessment Receipt (Taksiran Cukai)
c. Signboard License Prerequisites;
Which the signboard should:
(State the nature of business in Malay language (Bahasa Malaysia), Be approved of its placement by the town council, Ensure it isn’t mounted over any glass structure, window, façade, or obstruct any view or walkway, avoid visuals representing alcoholic beverages, cigarettes, or indecent photographs)
As for cost, pricing would be valued at RM3000 for a new application and RM1500 for renewal (although this may vary between local authority).
Venue of Submission
Business Premise License application and prerequisites can simply be submitted to either of the following venues that includes: Dewan Bandaraya Kuala Lumpur (DBKL), Majlis Bandaraya Petaling Jaya (MBPJ), or other local authorities.
Application Processing Period & Validity
Upon submission of the documents, the[ applicant(s) would need to wait close to a week, PROVIDED no essential documents are found missing. This is also affected based on the type of industry license that the business owner has applied for (pertains to small and medium stores as well as retail stores).
During the submission, keep in mind that you should have included the following essential documents such as the Assessment Receipt (Cukai Taksiran), that’s issued by your respective company premise’s town council,
along with your signboard having been approved by the Institute of Language and Literature (Dewan Bahasa dan Pustaka).
In addition, it should be noted that a signboard
license granted by the local authority is valid ONLY for a certain period (normally one year, although some authority bodies may provide an extension) from the date of application approval/ renewal approval.
NOTE:The authoritative bodies issuing the business license will inspect your business premises prior to distributing out the license.
Repercussions for Not Having a License
Failure to comply with regulations related to the license, as stated by Companies Act 2016 would result in either of the following repercussions on said business owner such as:-
– Being forced by authorities to halt all business operations,
– Fined a hefty sum of RM30,000,
– Loss of reputation and credibility,– Or worse, all the above!
Which is why, staying compliant in terms of document preparations is an essential part to fulfill prior to procuring a business premise license to avoid the possible cost-heavy setbacks mentioned earlier! However, you don’t have to do it all alone…
With 38 years of industrial experience in the field of company secretarial matters, Incorp is your trusted go-to business partner for all your business needs, backed by a team of highly qualified professionals, providing premium, quality services ranging from due diligence, incorporation, preparation of company resolution, and more.
Interested? Please kindly email us your queries via our email or WhatsApp located below and we’ll revert to you as soon as possible: –
Email: secretarial@elegant.com.myWhatsApp: 017-2727118
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