Opening a restaurant in Malaysia is an exciting venture, but it's crucial to understand the regulatory requirements for legal operation. From food safety to halal certification and liquor licenses, these are the pillars of your business. In this comprehensive guide, we'll delve into each aspect of licenses and permits needed to open a restaurant in Malaysia, ensuring you're well-informed and prepared to navigate the business license process and operate your business with confidence.
Key Requirements for Obtaining a Business Premise License in Malaysia
Before you can obtain a premise license in Malaysia for your food and beverage (F&B) outlet, it's crucial to ensure that you meet specific requirements mandated by regulatory authorities. These requirements are designed to uphold food safety standards, protect public health, and ensure your establishment's legal and responsible operation. Here's a detailed breakdown of each requirement:
1. Register Your Business with SSM
The first step in obtaining a premise license is to ensure that your F&B outlet is officially registered as a legal entity with the Suruhanjaya Syarikat Malaysia (SSM) or the relevant authority. This involves obtaining all necessary business registration documents, permits, and licenses required to operate a restaurant legally in Malaysia. The registration process typically includes providing details about your business structure, ownership, location, and activities.
Each business entity in Malaysia has its own business registration platform link. For further details, refer to the screenshot below.
For example, you plan to set up an Sdn Bhd company with specific requirements, such as needing at least RM1 as paid-up capital and one person to own the company's shares. You must also need at least one director and two shareholders who are 18 years old or older. One of the directors should be a Malaysian citizen or resident without recent legal issues. You'll also need at least one company secretary who belongs to a professional body or is licensed by SSM. You may register through MyCoID. For more information, refer to this Step-by-Step Guide on Registering a Sdn Bhd Company in Malaysia.
If you intend to establish an enterprise for your restaurant, note that this EzBiz is restricted to permanent residents and Malaysian citizens only who are aged 18 years old and above. You can proceed with enterprise registration through EzBiz online. For more information, you may refer to EzBiz guideline.
2. Complete a Ministry of Health-Certified Food Handling Course
As part of Malaysia's food safety regulations, you and your staff must undergo training in food handling and safety practices. This involves enrolling in a Ministry of Health-certified food handling course covering essential topics such as proper food storage, handling, preparation, hygiene practices, and sanitation protocols.
3. Get Typhoid Vaccinations for You and Your Staff
Typhoid fever is a bacterial infection transmitted through contaminated food and water, making vaccination crucial for individuals involved in food handling and preparation. Before obtaining your premise license, ensure you and your staff receive a typhoid injection from a healthcare provider. These vaccinations protect against typhoid fever and help prevent its transmission within your F&B outlet. By vaccinating yourself and your staff, you demonstrate your commitment to safeguarding public health and preventing the spread of foodborne illnesses.
4. Complete The Premise Inspection by Local Authorities
Before issuing a premise license, local authorities thoroughly inspect your F&B outlet to ensure compliance with health, safety, and sanitation standards. This inspection involves assessing various aspects of your premises, including cleanliness, hygiene practices, food storage facilities, waste disposal methods, and compliance with food safety regulations. Local authorities may also evaluate the layout of your establishment, equipment maintenance, pest control measures, and overall compliance with zoning and building codes.
Understanding 5 Types of Business License in Malaysia
Business licensing in Malaysia encompasses various permits and certifications essential for legally operating a restaurant. The business license for restaurants in Malaysia are issued by various government agencies and regulatory bodies and are designed to ensure that restaurants comply with health, safety, and other regulatory standards. Here's a closer look at the business licenses needed to open a restaurant in Malaysia:
1. Halal Certification
In Malaysia, a significant portion of the population follows Islamic dietary laws, so halal certification is essential for restaurants serving halal cuisine. Halal certification is issued by the Department of Islamic Development Malaysia (JAKIM), or other recognised halal certification bodies and ensures that the restaurant's ingredients, preparation methods, and overall operations comply with Islamic dietary laws. Here's what you need to know about obtaining halal certification:
a) Requirements
To obtain JAKIM certification, restaurant owners must ensure that all ingredients used in their food preparation are halal-certified and sourced from reputable suppliers in accordance with halal food requirements. They must also implement proper halal food handling practices and halal packaging procedures to prevent cross-contamination with non-halal ingredients.
b) Application Process
To apply for a Halal certificate, you need to use the MYeHALAL system. Begin by visiting the portal and choosing between a domestic or overseas application. Register your company account through the MYeHALAL system using your SSM number. Within 24 hours, you will receive email confirmation of your company's account ID and password. The company must read and download the Halal Certification Procedures Manual to understand the process thoroughly.
c) Fee Structure for Halal Certification
The license fees and license validity for various services provided by Hal Hub Malaysia are as follows:
- Hotels Without a Star Rating: RM200 per kitchen for two years.
- Adding a Promotional Menu or Menu Item: RM200 for two years.
- Adding a Product: Charges vary based on the company category.
- Adding an Outlet: RM200 per outlet for two years
d) Certification License Renewal
Renewal applications for certifications must be submitted between 6 months and 3 months before the certification expires. If the certificate has already expired, the company cannot apply for renewal and must submit a new application instead. These guidelines are provided by Hal Hub Malaysia.
2. Liquor License Malaysia
If a restaurant plans to serve alcoholic beverages, it must obtain a liquor license from the relevant authorities. In Malaysia, liquor licenses are issued by the local city council or excise department and are subject to strict regulations regarding the sale, service, and consumption of alcohol. Here's what you need to know about obtaining a liquor license:
a) Requirements
To obtain a liquor license, restaurant owners must demonstrate compliance with regulations such as age restrictions, operating hours, and responsible alcohol service. They may also be required to undergo training or certification in responsible alcohol service.
b) Application Process
The liquor license application process for premises that run businesses in Kuala Lumpur entails attending an interview or screening conducted by the police and customs authorities. Then, the license application is advertised in both Malay and English daily newspapers for two consecutive days, with all advertising costs covered by the applicant. Applicants must complete the designated form available at the Licensing Department Counter, Level 10, Dewan Bandaraya Kuala Lumpur Tower 3, Bandar Wawasan, Jalan Raja Abdullah, Kuala Lumpur.
Required Documents
- A copy of the current premises license.
- Four clippings of the license application advertisements from the two daily newspapers (Malay and English) were published for two consecutive days.
- A copy of the Business Registration or the Memorandum of Association (Memorandum and Articles of Association) along with forms 24 & 49.
- Four photographs of the applicant.
- A copy of the applicant's identification card.
- Two photographs of the premises show both the exterior and interior views.
- An A4 size location plan indicating the proposed business site.
- A letter of authorisation if the applicant's name is not listed in form 49.
c) Business License Fee for Liquor License Malaysia
- Wholesale License: RM540.00
- Retail License: RM420.00
- Public House License: RM1320.00
- Temporary License: RM30.00 per day (until the permanent license is obtained)
- Extended Hours License: RM30.00 per hour
For more information, refer to Guidelines and Requirements for Application of Alcoholic Beverage Business Premises License (DBKL).
You can refer to MalaysiaBiz to determine the respective state requirements for obtaining a business license and permits, such as Dewan Bandaraya Kuala Lumpur and Majlis Bandaraya Petaling Jaya.
3. Music and Entertainment Licenses
Restaurants that provide live music or other entertainment options may need an entertainment license to adhere to public performance regulations. These licenses are typically issued by the local city council or entertainment licensing board and may come with regulations concerning noise levels, operating hours, and permitted forms of entertainment. Here's what you should consider when obtaining an entertainment and music license Malaysia:
Here's what you should consider when obtaining an entertainment license:
1. Requirements
To obtain a music and entertainment license, restaurant owners must submit an application detailing the type of entertainment planned for their establishment and comply with any additional requirements set forth by the licensing authority.
2. Application Process
The application process for a music and entertainment license typically involves submitting an application form and supporting documentation, You may apply through MACP website.
3. Business License Fee for Music and Entertainment License
4. Signboard License
Displaying signage outside a restaurant is a common practice for attracting customers, but it requires a signage license to ensure compliance with local regulations. Signage licenses are issued by the local city council or municipal authority and may be subject to regulations regarding signage size, design, and placement. Here's what you need to know about obtaining a signage license Malaysia:
a) Requirements
To obtain a signage license, restaurant owners must comply with regulations regarding the size, design, and placement of signage set forth by the local city council or municipal authority. The estimated cost of obtaining a signage license is approximately RM 1200- RM 1500.
b) Signboard License Application Process
The application process for a signage license typically involves submitting an application form along with details of the signboard design for the premises and any required documentation or approvals from other authorities.
For instance, if you operate a restaurant business in Kuala Lumpur and wish to install a signage board for your establishment, refer to the Guidelines and Requirements for Application for Signboard Advertisement License and eLesen Signboard Advertisement application details.
Or
You can refer to MalaysiaBiz to determine the respective state requirements for obtaining a business license and permits.
5. Wholesale, Retail, & Trade (WRT) License
The WRT license is specifically designed for non-resident foreign-owned companies. A non-resident status company is defined as one where foreign ownership is more than 50% of the total share ownership of the company. It is a crucial legal requirement for businesses engaging in these sectors, ensuring compliance with regulations and facilitating smooth operations.
1. Requirements
To obtain a WRT license Malaysia, businesses must fulfil certain requirements mandated by the relevant authorities. Refer to the Wholesale and Retail Trade (WRT) business application checklist.
2. WRT License Application Process
To apply for a WRT License, you'll need to provide various documents with WRT license application form, including an income tax payment receipt, company profile, product list with images, organogram chart, completed application form for the Establishment of Distributive Trade in Malaysia, invoice/sales documents, EPF contribution record, bank statement, signboard and premise license, images of the office/factory/shop, import/custom/shipment clearance documents, and any other relevant documents as specified by Ministry of Domestic Trade and Cost of Living.
3. Business License Fee for Wholesale, Retail, & Trade (WRT) License
The WRT license authority must verify whether the company has a paid-up capital of RM 1 million if all shares are owned by foreigners. The cost to obtain a WRT license is RM 3000.
Conclusion
Navigating the intricate landscape of business licensing for restaurant is essential to establishing and maintaining a successful restaurant in Malaysia. Compliance with regulatory requirements ensures legal operation and upholds standards of food safety, hygiene, and service excellence. From securing a food establishment license to obtaining halal certification and liquor permits, each step in the licensing process is crucial for ensuring the smooth operation of your restaurant and the satisfaction of your customers.
By understanding the specific requirements for a restaurant license Malaysia, diligently preparing necessary documentation, and adhering to regulatory standards, restaurant owners can mitigate risks, avoid legal pitfalls, and create a safe, enjoyable dining experience for patrons. Remember, obtaining and maintaining proper business licenses is a legal obligation and a testament to your commitment to quality, integrity, and professionalism in the culinary industry. With careful attention to detail and proactive compliance efforts, your Malaysian restaurant can thrive within the regulatory compliance framework, delighting customers and contributing to the vibrant culinary landscape of Malaysia.
