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A Guide For Investors
INTRODUCTION
1.In the promotion of environmentally sound and sustainable development, the Government of Malaysia has established the necessary legal and institutional arrangements such that environmental factors are considered at the early stages of project planning. With reference to the licensing requirements for establishment of business/industry in the country,
environmental requirements and assessment constitute the second level of approval that need to be obtained after a business or industry has been registered.
2. Before a business can legally start operating, businesses are required to comply with some form of licensing, which could be a general licence, an industry/sector specific licence or activity specific licence. Business licences are required by the legislation and administered by various government agencies, statutory bodies and local authorities. Business licences includes registrations, approvals, licences and permits. The compliance requirements vary by industry, business activity and location. Business licences can be categorized into 3 different logical groups, namely:
(a) General licences – are licences that are required and shall be applicable once the investor has decided to incorporate a company and starts to employ staff. List of General licences, which may applicable to any business, include:
• Company Registration
• Company and Employees Income Tax Registration
• Employees Provident Fund
• Social Security Organisation
• Human Resources Development Fund
(b) Sector Industry Specific licences – are licences unique to a particular industry or sector that is specified by the Government. This involves major policies that controlled the development of certain industries or sectors in line with the development policy of the country. Examples of Sector/Industry Specific licences are:
• Manufacturing licence
• Telecommunication licence
• Broadcasting licence
• Oil Exploration licence
(c) Activity Specific licences – are licences that regulate particular activity and could be applicable to one or more Industries or Sectors. This category of licence requires investor to comply with sets of specific guidelines designed to protect the interest of the citizen, employment, safety of workers, environment and general public. Examples of Activity Specific Licences are:
• Certificate of Fitness for Certified Machinery
• Approval for Expatriate Post
• Approval to install/resite/alter Air Pollution Control Equipment (bag filter and chimney)
• Building Plan Approval
• Sales Tax Licence
The above information is a general guide towards making the initial steps, decision and planning for the intended business by potential investors and business owners. Investors can obtain further and specific information on “Business in Malaysia” from Business Licensing Electronic Support System (BLESS) Portal (www.bless.gov.my). BLESS provides information and facilities for companies to apply licences or permits to start operating business in Malaysia. [Note: To date, for the initial implementation (Phase 1), BLESS only covers application of business licences for the Manufacturing, Construction and Hotel Sectors and with manufacturing, construction and hotel facilities located within the Klang Valley].