A Guide: Business License Malaysia (SSM's Less Famous Cousin)

Starting a business in Malaysia feels like jumping through endless hoops, doesn't it?

You finally get your SSM registration sorted. You think you're done with government paperwork for a while.

Then someone mentions "business license" and your heart sinks.

Another license? Another application? Another fee?

Yes. But here's the good news: it's more straightforward than you think, and this guide breaks down everything you need to know.

What is a Business License in Malaysia? Is a Business License the Same as SSM Registration Certificate?

Here's a common misconception that trips up new business owners:

A business license is NOT the same as your SSM registration certificate.

Let me break it down:

• SSM Registration Certificate = Proof that your company legally exists in Malaysia

• Business License = Permission to operate your business at a specific physical location

So no, SSM is not a business license. They're two completely different things, issued by different authorities, serving different purposes.

The business license (also known as Business Premise License or Lesen Premis in Malay) is issued by your local council (Pihak Berkuasa Tempatan), not SSM.

Is a Business License Mandatory in Malaysia?

Yes. Absolutely. 100% mandatory.

If you're operating a business with a physical location in Malaysia, you MUST have a business license.

This applies to offices, factories, warehouses, retail shops, F&B outlets, salons — basically any business with four walls and a door.

What happens if you don't get one?

Operating without a valid business license can result in:

• Fines up to RM20,000

• Confiscation of business assets

• Suspension of business operations

So yeah... it's not worth the risk.

Get your license. Stay compliant. Sleep peacefully at night.

How Much is a Business License in Malaysia?

There's no fixed price.

The cost depends on:

• The nature of your business — An office license costs differently than an F&B restaurant license

• The floor area of your premises — Larger spaces typically mean higher fees

• Your local council — DBKL might charge differently than MBPJ or MBSA

• Additional licenses — Signboard licenses come with extra fees

Generally, you're looking at fees ranging from a few hundred ringgit to several thousand.

The best way to know the exact cost? Check with your specific local council or work with a professional service provider.

WhatsApp us now

Types of Business Licenses in Malaysia

At the broad level, Malaysia has 3 main categories:

1. General licenses (like the Business Premise License)

2. Industry-specific licenses (from federal government bodies)

3. Sector-specific licenses (for regulated activities)

Common Business Premise License types include:

• Office License (Pejabat Urusan) — For general business offices

• F&B Restaurant License (Kedai Makanan) — For restaurants, cafes, food stalls

• Barber Shop License (Kedai Gunting Rambut) — For salons

• Warehouse License — For storage facilities

• Flower Shop License (Kedai Bunga) — For florists

• Shoe Store License (Kedai Kasut) — For footwear retailers

For straightforward businesses, it's easy to determine which license you need. But for more complex activities, the local council will assess and determine the appropriate license category.

What Are the 4 Types of Businesses?

When people ask about the "4 types of businesses," they're referring to the 4 main business structures in Malaysia (although technically there are 7 types):

1. Sole Proprietorship (Enterprise) — A business owned and run by one person

2. Partnership — A business owned by 2-20 individuals who share profits and liabilities

3. Private Limited Company (Sdn Bhd) — A separate legal entity offering limited liability protection

4. Limited Liability Partnership (LLP) — Combines features of partnerships and companies

Important: All four types need a business license if they operate from a physical location.

How to Apply for a Business License in Malaysia

Step 1: Identify Your Local Council

You must apply to the local council that regulates YOUR specific location.

For example:

• Business in Kuala Lumpur? Apply to DBKL

• Business in Petaling Jaya? Apply to MBPJ

• Business in Shah Alam? Apply to MBSA

Pro tip: Check your assessment receipt (Cukai Taksiran/Pintu) to confirm which council regulates your area.

Step 2: Determine Which License Type You Need

Most business types are straightforward (office, F&B, retail).

For tightly-regulated activities, the local council will assess your application and determine the appropriate category.

Step 3: Prepare Your Documents

Basic Requirements:

• Completed application form for Business Premise License

• Copy of SSM registration certificate

• Identity documents (IC for Malaysians, passport for foreigners)

• 4 photos of your premises (2 exterior, 2 interior)

• Tenancy Agreement or Sale & Purchase Agreement

• Office layout plan

• Certificate of Completion and Compliance (CCC) OR Certificate of Fitness (CF)

• Quit Rent and Assessment receipts

• Fire Department support letter or Bomba Certificate

For Signboard License:

• Color visual of signboard design (with measurements)

• Photo showing installation location

• Approval from Dewan Bahasa dan Pustaka for Malay wording (takes 1-3 days)

Step 4: Submit Your Application

Processing time: Typically 1-2 months

The local council will review your application and either approve it or request additional information.

Step 5: Receive and Display Your License

Once approved, display your license prominently at your premises at all times.

The license is valid for one year and must be renewed annually.

Business License + Signboard License: Apply Together

Apply for both licenses at the same time.

Most businesses need both anyway, and some councils make it mandatory.

Signboard Requirements

Your signboard must:

• State business nature in Bahasa Malaysia

• Include company name and business license number

• Not be mounted over glass structures or block walkways

• Contain no alcohol, cigarette, or indecent imagery

The signboard license is also valid for one year and must be renewed annually.

Conclusion: Get Your Business License Sorted

A business license in Malaysia is mandatory, not optional.

Without it, you risk RM20,000 in fines, asset confiscation, and business suspension.

Remember:

• SSM registration ≠ Business license

• All businesses with physical locations need one

• Costs vary by business type and location

• Processing takes 1-2 months

• Valid for one year, renewable annually

You can handle this yourself or hand it over to professionals and get back to running your business.

Don't risk delays or penalties. Get your business license sorted early.

Want to focus on your business while we manage the boring paperwork for you?

Click here to chat with us.

Or WhatsApp us instead if you're a WhatsApp kind of person:

WhatsApp us now