Once the company is registered, can it start trading straight away?

Not necessarily. The section 15 notice of registration, and the section 17 certificate you can apply for separately, prove that the company has been lawfully incorporated, but the office or business premises usually still needs a Business Licence from the local city council or local authority before business activities can formally begin.

Can the Section 17 certificate replace a business licence?

No. They serve different purposes. The notice of registration and the certificate of incorporation prove that the company itself has been lawfully incorporated under the Companies Act 2016 (the notice is issued automatically, the certificate on application and payment of a fee), while the Business Licence proves that specific premises has the local authority's permission to carry out specified business activities. Neither replaces the other.

Section 17 certificate vs local authority business licence

Many founders assume that once the company is registered they can open for business straight away. In fact SSM's proof of incorporation, whether the Section 15 notice of registration or the Section 17 certificate you apply for separately, proves that the company has been lawfully incorporated, while the office Business Licence proves that the premises has the local authority's permission to carry out specified business activities. They serve different purposes and one cannot replace the other.

In Malaysia, once registration with the Companies Commission of Malaysia (SSM) is complete you receive a company registration number and SSM automatically issues the notice of registration under section 15 of the Companies Act 2016. Under section 18(1), the company exists from the date stated on that notice. The certificate of incorporation everyone calls "Section 17" works differently: under section 17 the company has to apply for it and pay a prescribed fee before the Registrar issues it. Either document proves that the company has been lawfully incorporated. They simply reach you by different routes.

Incorporation on its own does not mean every operating permission is in place. For most business activities you still have to apply separately to the local authority for a business licence once the actual premises is settled.

In one sentence: the notice of registration and the certificate of incorporation prove that the company has been lawfully incorporated. The Business Licence proves that this office or business premises has the local authority's permission to carry out specified business activities.

The right order to do things

1. Register the company: complete company registration with the Companies Commission of Malaysia (SSM) and obtain the company registration number and the section 15 notice of registration. If you also want the section 17 certificate of incorporation, apply for it separately and pay the prescribed fee.
2. Settle the actual premises: lease or buy the office, shop, warehouse or factory, and confirm the permitted use of that address and the local authority's requirements.
3. Apply for the local business licence: apply to the city council or local authority for the area where the premises sits for a Business Licence. If there is a sign, the Signboard Licence is usually applied for at the same time.
4. Apply for sector-specific permits: food and beverage, manufacturing, construction, tourism, healthcare, education and similar sectors may need additional departmental approvals.

A company can be registered first and then rent an office and apply for the Business Licence afterwards. Being registered therefore does not mean that every operating permission is in place.

The key differences side by side

Comparison Proof of incorporation (s.15 / s.17) Business Licence

Issued by

Companies Commission of Malaysia (SSM)

The local authority or city council for the area where the premises sits, for example Kuala Lumpur City Hall (DBKL)

What it proves

That the company has been lawfully incorporated under the Companies Act 2016 and is of a company type such as a private limited company

That a specific address is approved for use as an office or business premises and may carry out the activities named on the licence

When you get it

The notice of registration is issued automatically once registration is complete. The certificate is issued on application and payment of a prescribed fee

Usually applied for separately once the office or business premises is settled

Tied to an address?

Mainly proves that the company itself exists. It is not an operating permission for any particular premises

Usually tied directly to a specific business address, the use of the premises and the activities carried out

Validity and renewal

As proof of incorporation, it is not renewed annually in the way a local business licence is

Generally has a fixed validity period and must be renewed as the local authority requires. A DBKL licence, for example, is valid for one year

Can it replace the other?

It cannot replace a local authority business licence or a sector-specific permit

It cannot replace company registration, nor does it prove that the company itself has been lawfully incorporated

Common uses

Opening bank accounts, signing contracts, client due diligence, and proving the company's incorporation date and legal identity

Display at the premises, local authority inspections, leasing, fit-out, signage and day-to-day operating compliance

How GXY can help

We support clients from SSM company registration and obtaining the notice of registration and certificate of incorporation through to working out which Business Licence and sector-specific permits the premises needs, so that a lawfully incorporated company can also trade legally, instead of being shut down or told to apply for a licence it should already have had.

See our Company Registration service → SSM official website ↗

This content is for general reference only and does not constitute legal or licensing advice. Local authority requirements vary with the premises, its use and the industry, so please book a consultation and the GXY advisory team will advise on the facts that apply to you. Reviewed by the GXY advisory team. Last updated: 28 August 2026.