Before you start a business in Malaysia, it is mandatory for you to apply and possess business license, depending on the type of your business. Foreigners who have an intention to set up a private company in Malaysia should aware the type of license to be applied. For example, factory business license for most of the industry businesses. Generally, both foreigners and local Malaysians shared the same procedures and requirements in applying Malaysian factory business licenses. However, you are entitled to apply for the factory business license after obtaining the CCC (Certificate of Completion and Compliance).
Departments Involved
Typically, the application of factory business licenses involves Local Authority Licensing Department and three external departments namely Department of Occupational Safety and Health (DOSH), Department of Environment (DOE) and Fire and Rescue Department (BOMBA). The approval of these three external departments must be granted before proceed to Local Authority Licensing Department.
1. Department of Occupational Safety and Health (DOSH)
The submissions are in both hardcopy and softcopy. You submit through online submission via MyKKP website. Documents to be submitted are as followed:
Key plan, site plan and location plan
Architectural plan with location of machinery and equipment shown
Paid-up capital and annual sales turnover
Workers detail
Complete list of machinery and equipment with details including ID, model, type, manufacture year, manufacturing location, machine dimensions, power consumption and round per minute
Main materials to be used
Types of wasted materials (crumbs, slabs and so on) whether, solid, liquid or gas (if any)
Brief description of waste handling and waste disposal
2. Department of Environment (DOE)
Documents to be submitted are as followed:
Key plan, site plan and location plan
Architectural plan with location of machinery and equipment shown
Complete list of machinery and equipment with details including ID, model, type, power consumption and machine dimensions
Filled AS PAT form (Preliminary Site Assessment for Development Project) which include:[1]
Type of application
Land use in accordance to Planning Zone
Conceptual plan (if applicable)
Raw materials used and product
Schedule of operation
Production process with relevant diagram attached
Fuel supply, energy and process water usage information
Pollution information with pollutant types stated and point of emission/discharged indicated in process flow diagrams
Waste disposal process
3. Fire and Rescue Department (BOMBA)
Documents to be submitted are as followed:
Key plan, site plan and location plan
Complete architectural plan
Occupant load calculation
Fire appliances access indicated
Location of fire hydrant shown
Architectural plan of change/addition of structure
Active and passive fire safety installation
4. Local Authority Licensing Department
The submission requirements for factory business license application may be varied depending on different Local Authorities but supporting letters from DOSH, DOE and BOMBA are compulsory.
How long does it take for application to be approved?
It takes approximately 3 months for the application to get approved by Local Authority. Sometimes, it might take more than 3 months for successful approval. The delay may due to certain reasons such as the change of in-charge person and cancellation of meeting.
How much is the payment for factory business license application?
Local Authority Licensing Department decides the amount of payment. However, the payment may vary according to different local authorities.
Conclusion
In a nutshell, it is compulsory for both foreign and local investors to apply for factory business license before operating their business. The application involves both external and internal departments which are DOSH, DOE, BOMBA and Local Authority Licensing Department. Different departments may have their own submission requirements and you may pre-consult with the departments to prevent double work.
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