A business licence is the official permit a company needs to run a specific business lawfully in Malaysia. Completing company registration only establishes the company as a legal entity. Before it starts trading, a business often still needs the relevant licences, depending on the nature of the business and where it operates.
There is no single Malaysian business licence. Licences fall into several categories, depending on the regulator, and a company usually needs more than one at the same time.
What types of business licence are there?
- General licences: such as the local authority business licence and the signboard licence, applied for from the local authority (PBT, the local council) for each business premises, and needed by almost every business with a physical shop or outlet
- Industry licences: specific approvals for regulated industries such as food and beverage, education, healthcare or finance, applied for through the relevant regulator
- Activity licences: for specific business activities, such as wholesale and retail trade, or importing and exporting controlled goods
What should foreign-owned businesses watch out for?
A business with foreign participation that operates in wholesale or retail trade generally needs a Wholesale, Retail and Trade (WRT) licence, and may need to meet conditions such as a minimum paid-up capital. A business that carries out construction work also needs a separate CIDB licence, and hiring foreign employees requires a work pass.
Because there are many types of licence, issued by different regulators, it is worth drawing up the full list of licences you need at the registration stage. We help businesses confirm the licensing requirements for their industry and handle the applications and renewals, to reduce the risk of delays, operating restrictions or penalties caused by a missing licence.
This content is for general reference only and does not constitute legal or tax advice. For your own situation, please book a consultation so that GXY's advisory team can advise on your actual circumstances. Last updated: 17 September 2026.
