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Q：
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How many levels of approval does a company need to obtain before it can commence operations?
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A：
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It depends on the nature of the business and the scope of regulatory requirements at different levels of government in Malaysia. At the federal level, a company must first obtain incorporation approval from the Companies Commission of Malaysia.
Thereafter, depending on the business activities, additional approvals, licences, or permits may be required from relevant federal, state, or local authorities. The exact compliance requirements vary according to the industry, operations and business location of the company. Some businesses may commence operations immediately after incorporation, while others must secure additional approvals before commencement of business.
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Q：
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When does the Federal Government come into play for business licensing?
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A：
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The Federal Government is involved when a business operates in regulated or sector-specific industries that require federal approval. For example, manufacturing company may require a Manufacturing License from the Ministry of Investment, Trade and Industry. Foreign-owned wholesale and retail companies are regulated by the Ministry of Domestic Trade and Cost of Living through the issuance of Wholesale, Retail and Trade (WRT) license. Meanwhile, travel agencies and hotels are licensed under the Ministry of Tourism, Arts and Culture Malaysia.
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When does the State Government come into play for business licensing?
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State Government authorities are generally involved when a business relates to land matters, natural resources, or certain regulated activities such as entertainment. For example, approvals may be required from the Land Office for quarry-related permits, while the Forestry Department oversees the activities involving logging or forest resources, and the State Secretary’s Office (SUK) is responsible for the licensing of entertainment venues.
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Is a Local Authority (PBT) license mandatory for every business?
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A：
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Not necessarily. PBT is only required if a company operates from a physical premises, such as a retail shop, corporate office, factory or warehouse. The company is required to apply for a Business Premises License for the use of the premises, as well as a Signboard License for any external signage displayed at the business premises. These licenses are typically referred to as Composite License.
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Q：
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Why do I receive a temporary license instead of a permanent PBT license?
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A：
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Local Authorities (PBT) may issue a temporary license until all public safety and compliance conditions set by the Licensing Department have been satisfied. For example, a restaurant is required to have food handler certification from the Ministry of Health Malaysia and ensure its staff received typhoid vaccination. A warehouse must obtain clearance from the Fire Department, while a factory may require environmental approval from the Department of Environment.
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FAQ
