What’s in this article
- Malaysia Signboard License
- Liquor License in Malaysia
- Halal License in Malaysia
- Music Authors’ Copyright Protection Berhad License (MACP) in Malaysia
- Public Performance Malaysia License
- Food Establishment Licensing in Malaysia
- Food Handling License in Malaysia
- Malaysia Composite License
- Wholesale and Retail Trade (WRT) License in Malaysia
- What’s Next?
- RUN & EXPAND YOUR BUSINESS IN MALAYSIA WITH REGIONAL EXPERTS
- FAQs
If you’re looking to start a business in the Malaysian F&B industry, this guide serves a menu of business, restaurant licenses in Malaysia for restaurants! There are plenty of licenses that you will need to apply for to get your restaurant operations going – here are the procedures required to do so!
Malaysia Signboard License
A Signboard is akin to an Identity Card that an individual has. It represents a restaurant’s identity, similar to how an identity card identifies a unique individual.
Under Malaysian law, this is compulsory to have for all types of businesses in Malaysia. Having no Signboard is practically same as being an “undocumented person”, thus it is mandatory to have it or else it is a punishable offence.
A signboard license in Malaysia is typically valid for 1 year upon approval/renewal. You can choose to renew the license every year by paying the renewal fee.
Procedures to apply for Malaysia Signboard License
- Fill up an application form (borang permohonan), attached with it is the design of your signboard. Take note that your signboard is required to have the following:
- The nature of your business must be clearly stated in Bahasa Malaysia
- Company Name
- Business License Number
- Ensure there are no visuals related to alcohol, cigarettes or indecent photographs
- Submit the Required Documents (See checklist below)
- Pay the application fee
- Wait for approval on the signboard design and the signboard license
Checklist of Documents Required for Signboard License
| Name of Documents |
|---|
| SSM documents – this can be obtained via your company secretary |
| Tenancy Agreement / Sale and Purchase Agreement of your Business Premise |
| Certified True Copy of your identity card and/or passport photo |
| Office Layout Plan |
| Photograph of your business premise |
| Certificate of Completion and Compliance / Certificate of License |
| Photograph of the location intended to place the signboard |
| Signboard Visual – includes signboard size, physical measurement and design |
Liquor License in Malaysia
If you are planning to sell alcohol in your restaurant, it is mandatory under law to apply for a Liquor License in Malaysia. You will require a Liquor License no matter what form of liquor/alcohol, be it hard liquor or even a regular can of beer.
Given that Malaysia is made up of a majority of Muslims, it is taboo for them to consume alcohol. Therefore, the Liquor License is heavily emphasised by the government to ensure that only authorised establishments are selling alcohol.
There are two different Liquor Licenses:
- Public House License
- Beer House License
The difference between the two is that holders of Public House Licenses are allowed to engage in the retail sale of liquor, while Beer House Licenses are for consumption within the premises.
If you are a restaurant owner, a Beer House License will be more appropriate for you.
Procedures to apply for a Malaysia Liquor License
- Fill up an application form
- Submit the required documents (see checklist below)
- Pay application fee
- Wait for approval from your respective Town Council
- Checklist of Documents required
Checklist of Documents required
| Name of Documents |
|---|
| SSM documents – this can be obtained via your company secretary |
| Tenancy Agreement / Sale and Purchase Agreement of your Business Premise |
| Certified True Copy of your identity card and/or passport photo |
| Photograph of your business premise |
Halal License in Malaysia
61.3% of Malaysia practices Islam – which makes close to 20 million Individuals eat Halal-certified meals.
You cannot simply just call your products “Halal”. You have to apply for a Halal License, certified by Jabatan Kemajuan Islam Malaysia (JAKIM). Only upon this certification will you be a certified Halal restaurant.
To ascertain what exactly constitutes “Halal”, here is a guide by JAKIM:
- Does not stem from or consist of any part of or item from animals that are forbidden to Muslims by Islamic law, or animals that have not been slaughtered according to Islamic law.
- Does not contain any substance that is considered impure in Islamic law.
- Is not prepared, processed, or manufactured using equipment or utensils that are not free from impurities as defined by Islamic law.
- That, in the preparation, processing or storage stage, does not come in contact with or is stored near any kind of food that does not meet the requirements of para(s) (a), (b) or (c) or any substances that are considered impure by Islamic law.
As a business owner in Malaysia not looking to sell Pork or Alcohol related products, attaining a Halal License will be a wise choice to make. See below for what is required to be submitted to attain this crucial license.
Procedures to apply for a Halal license in Malaysia
- Fill in the relevant forms related to:
- Product/Consumer Goods
- Food Premise
- Slaughter House
- Submit the Required documents and relevant certificates (see checklist below)
- There will be internal Auditors coming to verify your application. An application can take anywhere from 6 to 24 months.
Checklist of Documents Required
| Name of Documents |
|---|
| SSM documents – this can be obtained via your company secretary |
| Name and Description of product/menu for certification |
| Ingredients used, including the name and address of your supplier |
| Type of packaging material |
| Other documents such as HACCP, ISO, GHP, GMP, TQM, etc |
| Location map of Business Premise |
Music Authors’ Copyright Protection Berhad License (MACP) in Malaysia
If you intend to play music in your restaurant, this violates the “personal use” portion as it is now can be commercial. It is thus now illegal to play it without a music consensus or license.
This is where the Music Authors’ Copyright Protection Berhad License (MACP) comes into play. You will need to apply for the MACP License in such a context.
Procedures:
- Submit your application to MACP
- Attach required documents (see checklist below)
- Make Payment – there are 4 categories provided in detail with differing payments
| Category | Price |
|---|---|
| Pub, bar, beer garden, bistro, lounge, resto bar | *Mechanical Music:
First 50 person – RM 1,500, each additional person RM 15 **Featured & Live Music: First 50 person – RM 2,800, each additional person RM 28 |
| Restaurant, café, coffee house | *Mechanical Music:
First 50 person – RM 800, each additional person RM 8 **Featured & Live Music: First 50 person – RM 1,300, each additional person RM 13 |
| Food court, canteen | *Mechanical Music:
First 50 person – RM 700, each additional person RM 7 **Featured & Live Music: First 50 person – RM 1,000, each additional person RM 10 |
| Budget eatery outlet | Flat Rate RM300 |
*Definition of Mechanical Music: refers to the performance of music by the use of any form of recordings (including digital format), CD, DVD, tape player, radio and television and includes from, and copied onto digital devices such as tablets and smartphones where the music is provided for background only.
**Definition of Featured Music: refers to the performance of music by DJ and includes music provided to accompany singing by patrons (karaoke) besides the use of any form of recordings (including digital format), CD, DVD, tape player, radio and television and includes from, and copied onto digital devices such as tablets and smartphones.
**Definition of Live Music: refers to the performance of music by live artiste performers including singers, bands, musicians, dancers, models and conductors.
- Acquire the License
Checklist of Documents Requirements
| Name of Documents |
|---|
| Company Business Registration and/or premises license issued by the respective local council |
| Total seating capacity |
| Company/Business Registration Number |
Public Performance Malaysia License
The Public Performance Malaysia License (PPM) is a specific license to get, as an added-on from the MACP. For restaurants with live bands, this is for you!
There are restaurants out there with live bands as part of what attracts your customer base. In cases like this, live bands fall under the purview of the PPM
Procedures to apply for a Public Performance Malaysia license
- Fill in the application form
- Attach required documents (see checklist below)
- Make payment – there are 4 categories provided with differing payments
- Submit the application form to PPM
| Category | Price |
|---|---|
| Discotheque/Nightclub/Karaoke/Lounge/Pub/Bistro/Other Multi Entertainment/Restaurant (With Pub or Bar Facility) | Price ranging from RM 3,000 to RM 27,000 |
| Lounge/Pub/Bistro/Restaurant (With Pub or Bar Facility) | Non-Featured Entertainment
First 50 persons RM 1,200, Every additional person RM 10 Surcharge Each monitor RM 400, Each video wall/multiple screen RM 1,000 |
| Eatery Outlet/Coffee House/Cafe/Cyber Cafe/Food Court/Gaming Centre/Fast Food Joint/Canteen/Community Singing Centre | Non-Featured Entertainment
First 100 persons RM 600 Every additional person RM 2 Surcharge Each monitor RM 200, Each video wall/multiple screen RM 1,000, Each stand-alone karaoke RM 1,000 |
| Traditional Coffee Shop | Non-Featured Entertainment
First TV/Audio Player RM 300 Surcharge Each monitor RM 100, Each video wall/multiple screen RM 1,000, Each stand-alone karaoke RM 1,000 |
Checklist of Documents Required
| Name of Documents |
|---|
| SSM documents – this can be obtained via your company secretary |
| Premises Name for all outlets |
| Details of Music/Sound Service Provider |
Food Establishment Licensing in Malaysia
As with every company, opening a food establishment requires you to set up a Malaysian company first.
Food Handling License in Malaysia
All food handlers must go through a Food Handling course conducted by an approved training school by the Ministry of Health.
This course includes those in the food processing, food service/hospitality and food retail sectors. Restaurant owners are also as well.
The purpose of this course is to create a food safety culture in Malaysia. Failure to attend this course will see a fine of not more than RM 10,000 or not more than 2 years of imprisonment.
Procedures to apply for a food handling license in Malaysia
- Find a training school approved by the Ministry of Health
- Upon completion, for the certificate to be given to you, you must also fulfil the local regulatory criteria.
Malaysia Composite License
A license that is not often considered but often needed, is the composite license. This license stipulates where you place and dispose your waste at. All you need to do is to fill in the online application form on eLESEN.
Wholesale and Retail Trade (WRT) License in Malaysia
To apply to the Ministry of Domestic Trade and Consumer Affairs (KPDNKK), the Wholesale and Retail Trade License (WRT) is one of the most common licenses that must be by a foreigner who wishes to conduct business in Malaysia under the wholesale and retail trade industry.
The WRT is a requirement for the application of an Employment Pass in Malaysia. As such, this licensing is very important to acquire. The WRT License is mainly will be 4 categories of trades in Malaysia, namely:
- Retail and Trading
- Franchise
- Services and Consultancy
- Restaurants
Procedures to apply for a wholesale and retail trade (WRT) license
The general process of acquiring a WRT License can be:
1) You must have a registered SDN BHD company, with the appropriate minimum paid-up capital
| Equity | Paid-up Capital |
|---|---|
| 100% Local Owned | RM 250,000 |
| Joint Venture (minimum foreign equity is 30%) | RM 350,000 |
| 100% Foreign Owned | RM 500,000 |
| Foreign-owned companies running Wholesale, Retail and Trade (WRT) Licence is compulsory. (Refer to the Ministry of Domestic Trade, Cooperatives and Consumerism WRT licence application guideline) | RM 1,000,000 |
2) You must have your own office space
3) You must have your staff employed or the director has to be present during site inspections
4) Provide us with the documents required (see checklist below)
5) After all the conditions are satisfied, we will then submit your application to the relevant government organisation
Checklist of Documents Required
| Name of Documents |
|---|
| Comprehensive Company Profile and Business Plan |
| Copy of IRB’s tax registration confirmation letter |
| Tenancy Agreement / Sale and Purchase Agreement of your Business Premise |
| Photo of the premises |
| Product list with pricing |
| Photo of product/services offered |
| List of expatriate details |
What’s Next?
Starting a restaurant in Malaysia is the same as starting any business. It can get exciting, it can get tough but it is your own project. We cannot help you in determining how it will go out, but we can determine how it will begin, which is by settling the fundamentals right.
FAQs
Yes, you can incorporate a company in Malaysia even though you are a foreigner. You can check how to do it here.
Foreigners who are planning to set up a restaurant in Malaysia have to introduce something unique yet relatable to the cuisines of the people living in Malaysia. The restaurant business provides 100% ownership to foreigners, making it a lucrative business opportunity. Many foreign restaurants owners are relatively established in the country. The first step to be taken is the registration of the restaurant in Malaysia. The following are the relevant requirements:
- Selection of business type: as a foreigner, the only choices available are those of registering as a Sdn Bhd or a private limited company.
- The foreigners need to obtain the following licenses depending on what they sell in the restaurant:
- Halal certification if the restaurant is Muslim-friendly
- Alcohol license if alcohol is being sold in the restaurant
- Import License for imported ingredients
- MACP and PPM licenses for restaurant owners who want entertainment options in their restaurant
- Wholesale and Retail Trade license. One point worth noting is that this license is only given if the restaurant serves ethnic food such as French or Middle Eastern cuisine and has a minimum space of nearly 140 square meters.
The location of the restaurant should have high traffic, easy access, and visibility from a distance.
The owner must take note of the modern food trends of Malaysia and opt for the menu according to the target market so as to attract more customers and earn revenue. Foreign restaurant owners can also acquire the DP10 visa that grants them a two-year work permit for their family and themselves.
Most of the businesses in the service sector in Malaysia operate manually. This includes restaurants as well. Newly opened restaurants have a cash-based system; only a few award-winning restaurants have modern cashless systems installed with other technical reservation systems that can also be used.
New restaurant owners may have to face tough competition from these high-end restaurants until and unless they have something unique to offer. However, those who choose to install an advanced cashless system or reservation system for seats in the restaurant through mobile apps can expect a great many customers who opt to dine in the restaurant.
Several other new restaurant owners may face the problem of location or even deciding on the menu The incorporation of the business or obtaining of the licenses may also become a major issue in many situations. If the restaurant owners are not using the services of any professional agency, then getting an excellent hiring staff in any city of Malaysia can also become difficult. Dedicated and ethical professionals play a significant role in the success of the restaurant. New restaurant owners must carefully select opening hours of their restaurant to match consumers’ convenience and to make profits.
Restaurants which serve home-cooked food is already making rounds amongst the Malaysians as they offer distinct delicacies. They also allow people living away from their home to experience truly authentic dishes. Most of the business owners and apps provide online platforms to connect consumers with home cooks. These apps or platforms are highly recommended for the people who plan to try home-cooked food and do not have time to go out or have grown tired of eating the same food all the time. Most of the home cooks also provide healthy options to the people that are interested in this market.
Home-based cooks must cater to food standards set up by the Malaysian government. People using these apps must render accurate information to make their accounts legitimate. Many apps offer a platform to restaurants to sell their cuisines online, and many companies are working on apps that can help home-based cooks to become part of this thriving industry. These apps help people sell and buy food; many locals have bought authentic delicacies at a reasonable price by using these apps.
Regarding the lega requirements of these home-based cooks, the Companies Commission of Malaysia requires all online food operators to register their business. The move was taken to protect consumer rights and to save them from buying counterfeit products. Authorities can and will carry out routine inspections to check the quality of the food being sold. It is also essential to maintain the hygiene of the place of operation so as to get the required license.
Warm Greetings!
We, my wife and I run a Yoga Company in Bangalore, India for the past 8 years and would now like to spread Yoga and explore more opportunities in another country. Hence, we would like to set up a Yoga Company in Malaysia.
We would be grateful if you could help us with some information about setting up our Yoga Company in Malaysia and resident permit,Work permit.
Please do let us know if we would require to submit any additional information and we would be glad to do so.
Thank you
Warm regards
Ravi Ranjan Kumar
Hello Ravi,
If you are interested in expanding your company to Malaysia, you will need to register with SSM for incorporation purposes.
Several different work permits are available in Malaysia; these include the Employment Pass and Professional Visit Pass, among others. Select one according to the needs of your company.
For further information, contact us at Paul Hype Page & Co so that we can assist you with regard to company incorporation and work permits in Malaysia.
Thank you.
Paul