Overview

Get the licence right
before you start trading

In Malaysia, every sector and every size of operation carries its own licensing requirements. A factory needs a manufacturing licence, construction work needs a Construction Industry Development Board (CIDB) grade, and a trading company needs a Wholesale, Retail and Trade (WRT) licence. Miss one and the business cannot lawfully operate.

GXY knows the approval process and the foreign equity thresholds at each authority. We map out the licences you need, assemble the documents and deal with the departments, so the government paperwork is handled by specialists and you can focus on getting the project off the ground.

Manufacturing licence and regulatory compliance applications for factories in Malaysia

Construction licensing

CIDB construction licences G1–G7

Every construction contractor in Malaysia must be registered with CIDB, commonly referred to as holding a CIDB licence. Contractors are graded G1 to G7 by the maximum value of a single project they may take on: the higher the grade, the larger the project, and G7 carries no ceiling at all. We assess the grade you should apply for and take the application through for you.

GradeProject value capScale

G1 ≤ RM200,000

G2 ≤ RM500,000

G3 ≤ RM1,000,000

G4 ≤ RM3,000,000

G5 ≤ RM5,000,000

G6 ≤ RM10,000,000

G7 No value cap

Requirements for foreign contractors

Paid-up capital of at least RM750,000
At least 2 Malaysian staff with construction-related degrees, one with 5 or more years of experience
A 100% foreign-owned company may apply for G7 (PPKA)
Companies with more than 30% foreign equity are classed as foreign contractors

Licence validity: 2 years on a first application, then 1–3 years on renewal depending on your contracting record. Have an adviser assess your grade ›

Licence applications

The main licences and permits we handle

Manufacturing Licence (ML)

Issued by the Malaysian Investment Development Authority (MIDA) and required to set up a factory, whether the premises are owned or rented. MIDA also handles tax incentives, expatriate posts and import duty exemptions on raw materials and machinery.

Business Licence (BL)

Issued by the local authority and required in every sector before trading begins. Signage needs a separate signboard licence. Local shareholding of 51% or more is generally required, along with a specified set of application documents.

CIDB construction licence

Essential for any construction contractor, graded G1–G7 by project value as set out in the table above. Foreign contractors must meet paid-up capital and local-professional thresholds. We handle the whole application.

Wholesale, Retail and Trade (WRT) licence

Trading companies with foreign equity above 51% must obtain a WRT licence before they can operate. We prepare the shareholding structure and documents to give the application the best chance of approval.

DOE environmental approval

The Department of Environment (DOE) approval covering pollution and emissions at a factory site. A site that falls short can be ordered to halt production. We liaise with the department and complete the filings for you.

DOSH workplace safety

Factory equipment and heavy machinery must be declared to and approved by the Department of Occupational Safety and Health (DOSH). We complete the machinery declarations and the safety compliance formalities.

Setup sequence

How a factory gets licensed

Setting up a factory from scratch means clearing five government approvals in order. We coordinate the whole sequence and deal with each authority in turn, so each approval feeds straight into the next.

1Business licenceBL

2Environmental approvalDOE

3Safety approvalDOSH

4Manufacturing licenceML

5Tax incentive applicationIncentives

Application checklist

Documents required for
a Business Licence (BL)

No business can lawfully open its doors without one. These are the documents usually needed for the application. We check each one with you and get the formatting right, giving the submission the best chance of being accepted first time.

A completed application form

Directors’ passports or identity cards, and photographs

A stamped tenancy agreement

Interior and exterior photographs of the premises, plus a floor plan

The company stamp and a fire extinguisher support letter

The complete company registration documents from the Companies Commission of Malaysia (SSM)

Licensing compliance on a construction and engineering project site in Malaysia

Sample documents

Licence and permit samples

Below are samples of licences we have obtained for clients, with the details masked. They show the form each one takes. Click to view the full image.

Sample Malaysian Manufacturing Licence (ML)

Manufacturing Licence (ML) Sample manufacturing licence issued under the Industrial Co-ordination Act 1975 · Click to view →

Sample Malaysian business licence (Lesen)

Business licence (Lesen) Sample business licence issued by the local authority · Click to view →

Sample Malaysian industrial and advertising licence (Lesen Industri dan Iklan)

Industrial and advertising licence Sample licence for industrial operations and advertising signage, Lesen Industri dan Iklan · Click to view →

Status and incentives

Special status and incentive applications

Halal certification

Issued by the Department of Islamic Development Malaysia (JAKIM), halal certification is the key to halal markets for food, manufacturing and export businesses. We guide companies through the certification process.

Malaysia Digital (MD) status

Malaysia Digital status (formerly MSC Malaysia status) is awarded by the Malaysia Digital Economy Corporation (MDEC) and comes with tax relief and operational benefits. We assess your eligibility and prepare the application.

For qualifying projects, we identify the tax incentives you are entitled to and handle the applications. Talk to an adviser for free ›

Full capability list

Specialised approvals

Beyond the six core licences above, we also handle the specialised approvals and supporting applications that factory operations and larger projects often require.

Environmental impact assessment (EIA), by grade

Licensed Manufacturing Warehouse (LMW) status

Import duty and sales tax exemptions

Employment Pass (EP) and Professional Visit Pass (PVP)

Certificates of origin and other supporting applications

Why choose us

The GXY licensing advantage

A strong professional network

A network of 5 law firms, 4 structural engineering firms, 2 environmental engineering firms and 13 water supply consultants. Even an application spanning several disciplines is coordinated in one place.

A proven track record

We have handled 200+ top-grade CIDB G7 licences, 66 factory manufacturing licences and 100+ DOE environmental approvals. This includes the only oil and gas processing and waste import processing licence in Malaysia held by a wholly foreign-owned company.

Compliance in one place

From company registration and accounting to licensing and corporate consulting, every professional service a business needs to set up sits with one team, with no need to juggle multiple firms.

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