Do I need a business licence or local council licence after registering a company?
SSM registration only creates the company. Most activities also need a licence or permit from the relevant authority, often including a local council (PBT) premises or trading licence. SSM's guideline advises getting the necessary licences before starting business. What you need depends on your activity and premises.
SSM's incorporation guideline states that once incorporated, a company is advised to obtain the necessary licence, permit or approval from the relevant authorities before commencing business.
Common categories
- Local council (PBT) licence for premises or trading: usually needed for shops, offices open to the public, food outlets and signage. Requirements and fees are set by each council.
- Sector licences: for example food premises, healthcare, education, financial services, construction registration, trade licences from KPDN.
- Zoning and building approvals: your premises must be approved for the activity.
- Tax and statutory registrations: not licences, but needed for staff and tax (covered in other sections).
How to approach it
- List your activities exactly.
- Ask the local council for its licence checklist for your premises.
- Ask the sector regulator whether you need approval, and whether foreign equity matters.
- Apply early; some approvals take weeks.
Operating without a required licence can lead to fines or closure, even if SSM registration is valid. We do not have a verified national list of licences here, so rely on the agency for your activity.
Sources
Applies to 2026 · Last reviewed 29 October 2026
General information for business owners, not legal, tax or professional advice. Rules change, so check the sources or ask a licensed professional before you act.
Related questions
- What business structure should I choose in Malaysia: sole proprietorship, partnership, LLP or Sdn Bhd?Pick based on liability, who owns it and how credible you need to look. A sole proprietorship or partnership is cheapest but the owners are personally liable; an LLP or a Sdn Bhd gives a separate legal entity. A Sdn Bhd is the usual choice once you hire staff, sign larger contracts or bring in investors.
- What is the difference between a sole proprietorship and a Sdn Bhd in Malaysia?A sole proprietorship is not a separate legal person, so you are personally liable for all business debts. A Sdn Bhd is its own legal person and shareholders are generally liable only for unpaid share capital. A Sdn Bhd costs more to set up and carries more yearly filing duties.
- What is an LLP in Malaysia and how is it different from a Sdn Bhd?A limited liability partnership (LLP) is a body corporate registered under the LLP Act 2012. It needs at least two partners (a shortfall is allowed for six months) and a compliance officer who is a Malaysian citizen or permanent resident living in Malaysia. It runs on a partnership agreement, not a board. A Sdn Bhd has directors, shares and heavier governance under the Companies Act 2016.
- Can one person be the only director and shareholder of a Sdn Bhd?Yes. A company needs at least one member and one director, and one person can be both. A private company must have at least one director who ordinarily lives in Malaysia. You still need a licensed company secretary, and you cannot act as both director and secretary where the law needs both.
- What is the minimum paid-up capital for a Sdn Bhd in Malaysia?The Companies Act 2016 sets no minimum amount; a company needs at least one share. Shares no longer have a par value. Many Sdn Bhds start with RM1 to RM1,000, but regulators, banks and immigration can expect more depending on your activity or foreign ownership.