Before you start a business in Malaysia, it is mandatory for you to apply and possess business license, depending on the type of your business. Foreigners who intend to set up a private company in Malaysia need to know and understand the various types of business licenses in Malaysia depending on their business activities.
Generally, both foreigners and local Malaysians shared the same procedures and requirements when applying for a Malaysian factory business license. However, you are entitled to apply for a factory business license after obtaining the Certificate of Completion and Compliance (CCC).
What are the departments involved?
Typically, the application of factory business licenses involves Local Authority Licensing Department and three external departments namely Department of Occupational Safety and Health (DOSH), Department of Environment (DOE) and Fire and Rescue Department (BOMBA). The approval of these three external departments must be granted before proceed to Local Authority Licensing Department.
1. Department of Occupational Safety and Health (DOSH)
The submissions are in both hardcopy and softcopy. You submit through online submission via MyKKP website. Documents to be submitted are as followed:
- Key plan, site plan and location plan
- Architectural plan with location of machinery and equipment shown
- Paid-up capital and annual sales turnover
- Worker details
- Complete list of machinery and equipment with details including ID, model, type, manufacture year, manufacturing location, machine dimensions, power consumption and round per minute
- Main materials to be used
- Types of wasted materials (crumbs, slabs and so on) whether, solid, liquid or gas (if any)
- Brief description of waste handling and waste disposal
2. Department of Environment (DOE)
Documents to be submitted are as followed:
- Key plan, site plan and location plan
- Architectural plan with location of machinery and equipment shown
- Complete list of machinery and equipment with details including ID, model, type, power consumption and machine dimensions
- Filled AS PAT form (Preliminary Site Assessment for Development Project) which include:[1]
- Type of application
- Land use in accordance to Planning Zone
- Conceptual plan (if applicable)
- Raw materials used and product
- Schedule of operation
- Production process with relevant diagram attached
- Fuel supply, energy and process water usage information
- Pollution information with pollutant types stated and point of emission/discharged indicated in process flow diagrams
- Waste disposal process
3. Fire and Rescue Department (BOMBA)
Documents to be submitted are as followed:
- Key plan, site plan and location plan
- Complete architectural plan
- Occupant load calculation
- Fire appliances access indicated
- Location of fire hydrant shown
- Architectural plan of change/addition of structure
- Active and passive fire safety installation
4. Local Authority Licensing Department
The submission requirements for factory business license application may be varied depending on different Local Authorities but supporting letters from DOSH, DOE and BOMBA are compulsory.
How long does it take for application to be approved?
The entire application process takes approximately 3 months to get approved by Local Authority. Sometimes, it might take more than 3 months for successful approval. Various reasons will cause the approval to be delayed, such as the person in charge being changed or the meeting being cancelled.
How much is the payment for factory business license application?
Local Authority Licensing Department decides the amount of payment. However, the payment may vary according to different local authorities.
Conclusion
In a nutshell, it is compulsory for both foreign and local investors to apply for factory business license before operating their business. The application involves both external and internal departments which are DOSH, DOE, BOMBA and Local Authority Licensing Department. Different departments may have their own submission requirements and you may pre-consult with the departments to prevent double work.
