Your Brief Guide in Applying for a Business Premise License

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Your Brief Guide in Applying for a Business Premise License

January 14, 2022 incorp 0 Comments

Reading Time: 5 Minutes –

Having your company successfully incorporated by SSM (Suruhanjaya Syarikat Malaysia) doesn’t mean the end of your incorporation journey… 

 

Another matter of concern yet still stands in the form of business licenses. In this article, we’ll be covering on one of these particular licenses dubbed, Business Premise & Signboard Licenses (where both Business Premise License and Signboard License go hand-in-hand).

 

 

What is Business Premise License & Signboard License?

According to Companies Act 2016 (CA2016), Business Premise and Signboard License are documents REQUIRED by both SSM and local authorities (or “pihak kawasan tempatan in Malay). Some examples include, DBKL, MBPJ, etc. The reason why these documents are required is to legalize your claim over a physical venue (office, shops, etc.) for the purpose of running your business operations. Alternatively, Business Premise and Signboard License
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.  However, application’s requirements may vary between each local authority. Generally, local business owners have the privilege of experiencing quicker confirmations and less stringent conditions to meet. On the other hand, additional requirements would need to be fulfilled by foreign applicants, such as having a partnership with local representatives for example, as without one, it could drag the process longer!

 

Also it depends on where it is performed. The over-the-counter approach usually takes between 40-to-60 days to be approved whereas for online applications, it takes 1 day to be approved.

 

Generally, Malaysia has two of the following business license types: –

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.), every company must obtain a business license. Locally owned companies would generally experience quicker approvals and less stringent requirements as mentioned earlier.

 

In contrast, foreign owned companies are often asked if they have local representatives. Without one, the process could drag on for a longer period of time. As it goes, while complete foreign ownership is permitted, if you are in an industry which requires specific licenses, then running your business in Malaysia might be more difficult than your local counterparts.

 

Requirements in Applying for the License

To apply for a license, a list of the following standard documents will need to be prepared. This consists of a copy of each of the following: –

 

a. Documents:

i. A Complete Set of SSM-Related Forms & Memorandum & Articles of Association ((M&A), known also as Constitution as per Companies Act 2016):

– Form 9 (or Borang 9 in SSM) (Certificate of Incorporation) ,

– Form 24 (or Borang 24 in SSM(Notification of Change in the Register of Members), 

– Form 44 (or Notice Of Situation Of Registered Office And Of Office Hours And Particulars Of Changes), and 

– Form 49 (or Return Giving Particulars in Register of Directors, Managers, and Secretaries and Changes of Particulars))

*(Overall mentioned documents above also known as Superform as per Companies Act 2016)


ii. Standard Compulsory Documents:

– Business Owner’s IC and Photographs


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– Floor Plan of your company’s business premise– Certificate of Fitness for business premise– Assessment Receipt (Taksiran Cukai), and – Fire Department’s support letter
b. Additional Required Documents for Signboard License:

– Photos of Signboard Location(NOTE: To apply for a Signboard License, you MUST first apply for a business license first)

 

c. Signboard License Prerequisites;

In which the signboard should

– All signboard artwork and format subjected to local authorities and must first get approval by “Dewan Pustaka dan Bahasa”, 

– 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)

 

In addition, it should be noted that the requirements above MAY vary for each of the local authorities.

 

Venue of Submission

Business Premise License application and prerequisites can simply be submitted to either one of the following venues which includes: 

– Dewan Bandaraya Kuala Lumpur (DBKL)

– Majlis Bandaraya Petaling Jaya (MBPJ)or 

– Other local authorities.

However, the type of local authority will be subjected based on where the particular business is operating at (EG: If your business is operating in Kuala Lumpur, then you will be under the jurisdiction of DBKL).


Application Processing Period & Validity

Upon successfully submitting the documents, the applicant(s) would need to wait for their application’s approval between a week to 3 months (subjected to the discretion of local authorities) although, on certain occasions, it can be approved within the same day (subject to the nature of business). However, this is also PROVIDED no essential documents are found missing and 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 prior, keep in mind that you should already have included the following essential documents such as the Assessment Receipt (Cukai Taksiran), 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).

 

Regarding the validity of a signboard license granted by the local authority, it is ONLY applicable between 6 months to a year (subjected to local authorities’ discretion). Hence, subsequent renewals for it should be done in a timely and yearly basis.

 

NOTE:The authoritative bodies issuing the business license will inspect your business premises before distributing out your license.

Repercussions for Not Having a License

Failure to comply with regulations related to the license, as stated by the local authorities could result in either of the following penalties, such as:-

– Being forced by authorities to halt all business operations,

– Fined a hefty sum of RM30,000 (subjected to local authorities discretion),

– Loss of reputation and credibility,– Or worse, all the above!

Which is why, staying compliant with the authorities can be quite the hassle, especially having to keep in mind the numerous documents one has to prepare to avoid possible cost-heavy penalties! However, you don’t have to do it alone…

 

With 38 years of industrial experience in the field of company secretary matters, Incorp is your trusted and faithful business partner for all your corporate needs. Backed by a team of highly qualified professionals, we provide premium quality services that ranges from corporate due diligence and incorporation, all the way to other relevant areas such as preparing company resolutions 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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