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Q：
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What is a Second-Hand Dealers License in Malaysia?
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A：
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A Second-Hand Dealers License is a regulatory license required under the Second-Hand Dealers Act 1946 (“the Act”) and enforced by the Royal Malaysia Police (PDRM) in Malaysia. It governs businesses involved in the buying, selling, or trading of used or pre-owned goods.
The main purpose of this licensing regime is to ensure transparency in the trade of second-hand items, prevent the circulation of stolen goods, and safeguard consumer interests. It also enables authorities to monitor and regulate businesses dealing with used goods to maintain public order and compliance with local regulations.
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Q：
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Who needs to apply for this license?
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A：
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Any individual or company carrying out commercial activities involving second-hand goods may be required to obtain this licence. This typically includes businesses such as second-hand vehicle parts dealers, used electronics shops, and traders dealing in scrap metal and recyclable materials etc.
Even businesses that deal in used goods as part of their broader operations may fall within the scope of this requirement, depending on the applicable interpretation and enforcement by the relevant authorities.
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Which authority issues the license?
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The Second-Hand Dealers License is issued by PDRM, typically through the relevant District Police Headquarters, in accordance with the Act. Separately, the relevant local authority, such as the City Council, Municipal Council, or District Council where the business premises is located, is responsible for issuing the business premise license and signboard license.
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Q：
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What documents are usually required for application?
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A：
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While requirements may vary between licensing authorities, the following documents are commonly requested:
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Company registration with the documents
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Identification documents of directors
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Details of business premises (including tenancy agreement or ownership proof)
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Layout plan or description of business operations (if required)
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Any additional supporting documents as requested
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Q：
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Can foreign-owned companies apply for this license?
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A：
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Foreign-owned companies are not restricted from applying for a Second-Hand Dealers License in Malaysia, provided they are properly incorporated or registered in Malaysia and comply with local regulatory requirements.
However, approval is subject to the discretion of the relevant licensing authority, such as PDRM, and may be subject to additional requirements, documentation, and compliance checks on a case-by-case basis. Site inspection and further verification may also be required before approval is granted.
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FAQ
