Factory Business License Application

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).

What are the 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.

 

Ir. Dr. Justin LAI Woon Fatt
CEO/ Founder
IPM Group

Reference:
[1] Retrieved on 13rd August 2019 from: http://www.pbtpengerang.gov.my/sites/default/files/lampiran_d_-_as-pat-jas.pdf