Business License Malaysia: Types, Costs, and How to Apply (2026)
Want to start a business in Malaysia? You need a license. But which one? How much does it cost? Where do you even apply? Here’s everything in one place.
Step 1: Register Your Business with SSM
Before any license, you need to register with Suruhanjaya Syarikat Malaysia (SSM). This is mandatory for every business in Malaysia.
Registration Types
| Type | Best For | Cost | Liability |
|---|---|---|---|
| Sole Proprietor (Enterprise) | Freelancers, small traders | RM 30-60/year | Unlimited personal liability |
| Partnership (LLP) | 2+ partners sharing a business | RM 500 registration | Limited liability |
| Sdn Bhd (Private Limited) | Serious businesses, want credibility | RM 1,000-1,500 setup | Limited to company assets |
Which should you choose?
- Starting small, testing an idea? Enterprise (cheapest, simplest)
- Want to look professional, hire staff, get loans? Sdn Bhd
- Have a partner? LLP gives you legal protection
How to Register
- Go to MyCoID Portal
- Create an account with your MyKad
- Choose your business structure
- Reserve your business name (RM 50 for Sdn Bhd, RM 30 for Enterprise)
- Submit registration documents
- Pay the fee
- Get your registration certificate (usually 1-3 working days)
Step 2: Get Your Business License
After SSM registration, you may need additional licenses depending on your business type and location.
Local Council Business License (Lesen Perniagaan PBT)
Almost every business operating from a physical location needs this. Apply at your local council (Majlis Perbandaran / Majlis Bandaraya).
Cost: RM 100-500/year depending on business type and location What you need:
- SSM registration certificate
- Tenancy agreement or property ownership proof
- Business premise photos
- Fire safety certificate (for certain premises)
- Signboard application
Processing time: 2-4 weeks
Industry-Specific Licenses
| Business Type | License Needed | Issuing Authority |
|---|---|---|
| Food & beverage | Food Premises License | Local council + MOH |
| Restaurant/cafe | Food handler certificate | MOH |
| Importing goods | Import license | MITI |
| Manufacturing | Manufacturing license | MIDA (if > RM 2.5M investment) |
| Tourism/travel | Travel agency license | MOTAC |
| Childcare/nursery | Childcare center license | JKM |
| Money lending | Moneylender license | KPKT |
| Alcohol sales | Liquor license | Local council |
| Construction | CIDB registration | CIDB |
| Healthcare | Medical practice license | MOH |
Digital / Online Businesses
Good news: if you’re running a purely online business from home (freelancing, e-commerce, digital services), you may not need a PBT license. But you still need:
- SSM registration — mandatory, no exceptions
- Income tax registration — with LHDN (Lembaga Hasil Dalam Negeri)
- SST registration — if your annual revenue exceeds RM 500,000
Some local councils are starting to require home-based business licenses. Check with your PBT to be safe.
Step 3: Tax Registration
Income Tax (LHDN)
Every business must register with LHDN:
- Enterprise/Sole Prop: Income taxed under your personal tax rate (0-30%)
- Sdn Bhd: Corporate tax rate — 17% on first RM 600,000, 24% on the rest (for SMEs with paid-up capital under RM 2.5M)
Sales and Service Tax (SST)
You must register for SST if:
- Your annual taxable revenue exceeds RM 500,000 (for services)
- You manufacture taxable goods exceeding RM 500,000
SST rate: 6% (service tax) or 5-10% (sales tax depending on goods)
Common Costs Summary
| Item | Cost | Frequency |
|---|---|---|
| SSM registration (Enterprise) | RM 30-60 | Annual |
| SSM registration (Sdn Bhd) | RM 1,000-1,500 | One-time |
| Sdn Bhd annual return | RM 150-300 | Annual |
| Company secretary | RM 800-1,500 | Annual |
| PBT business license | RM 100-500 | Annual |
| Signboard license | RM 50-200 | Annual |
| Fire certificate | RM 100-300 | One-time + renewal |
| Total first year (Enterprise) | RM 300-800 | |
| Total first year (Sdn Bhd) | RM 2,500-4,500 |
What Happens If You Operate Without a License?
Don’t risk it:
- SSM: Fine up to RM 50,000 or 2 years imprisonment
- PBT: Fine RM 250-1,000 per offense, premises can be sealed
- Tax (LHDN): Penalties + interest on unpaid taxes
- Industry licenses: Varies, but can include business closure
More practically: you can’t open a business bank account, apply for loans, or bid for government contracts without proper registration.
Step-by-Step Checklist
- Decide on business structure (Enterprise vs Sdn Bhd vs LLP)
- Register with SSM via MyCoID
- Open a business bank account
- Register with LHDN for income tax
- Apply for PBT business license (if operating from premises)
- Get industry-specific licenses (if applicable)
- Register for SST (if revenue exceeds RM 500K)
- Get insurance (fire, public liability, professional indemnity)
The Bottom Line
Business registration in Malaysia is straightforward — it just feels complicated because the information is scattered across 10 different government websites. Follow the checklist above, start with SSM, and add licenses as your business grows.
For the full picture on costs, registration, and getting your first customers, read our complete guide to starting a business in Malaysia. And here’s an honest look at the real cost of running a business once you’re up and running.
Don’t overthink it. Register, get legal, and focus on making money. Steady lah.