FAQQ&A on Types of Business Licenses in Malaysia
| Q： | What are the types of business licenses in Malaysia? |
| A： |
Generally, business licenses in Malaysia are categories into 3 distinct types, namely general licenses, sector-specific licenses and activity-specific licenses. The type of license required is contingent upon the business activity and its location of operation. |
| Q： | How to apply for a business license in Malaysia, and which authority is responsible for issuing licenses? |
| A： |
Firstly, identify the type of license required based on the nature of business. This could be a general license, activity-specific license, or sector-specific license. Next, identify the relevant authority to which the application should be submitted for approval. General licenses are issued by the local authority of the respective district, while activity-specific and sector-specific licenses are issued by the appropriate government ministry. Finally, prepare and submit the application, pay any necessary fees, and await approval. |
| Q： | What is the duration required to obtain business licenses? |
| A： |
The duration required to obtain a business license in Malaysia can vary depending on several factors, such as the type of license, the local authority involved, the complexity of the application, and the completeness of the submitted documents. Typically, the process can take anywhere from a few weeks to several months. |
| Q： | Is a business license mandatory at the time of company incorporation? |
| A： |
No, obtaining a business license is a separate process that must be completed after incorporation, depending on the nature of your business and its location. You will need to apply for a business license with the relevant local authority or government ministry before you can legally operate your business. The license is typically required once you begin your business operations, but it is not part of the company incorporation process itself. Failure to obtain the necessary licenses may result in several consequences, including penalties, fines, suspension of business operations, legal action and reputational damage. |
| Q： | How long does a business license last in Malaysia? |
| A： |
The validity of a business license in Malaysia typically ranges from one to five years, depending on the type of license and the issuing authority. It is important for business owners to be aware of the renewal period and ensure their license is renewed before it expires to avoid penalties. |
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