Permitting REQUIREMENTS FOR DOING

BUSINESS IN MALAYSIA

1. BUSINESS PREMISE LICENSES AND SIGNBOARD LICENSES

Organizations working together in Malaysia are required to apply for business premise licenses and billboard licenses from the individual State Authorities. The necessities for the use of a business premisee permit and a billboard permit may differ as indicated by every nearby position. By and large, an application for a permit to operate and billboard permit must be joined by:

(I) Photocopy of the candidate's character card

(ii) Passport-sized photo of the candidate

(iii) Copy of the organization's M&A and Forms 9, 24 and 49

(iv) Copy of either the tenant contract or the deal and buy understanding of the organization's business premise

(v) Copy of the Certificate of Fitness of the organization's business premise

(vi) Copy of the Fire Department's help letter

(vii) Copy of the area plan of the organization's business premise

(viii) Photographs of the business premise

(ix) Photographs indicating the area of the organization's billboard

(x) Samples of the billboard demonstrating its structure and hues

2. Extraordinary LICENSES

Furthermore organizations doing the accompanying organizations are additionally required to get uncommon licenses:

I) Manufacturing

Assembling organizations with investors' assets of RM2.5M or more or which utilize at any rate 75 full-time workers are required to apply for assembling permit from MIDA.

ii) Banking

Under the Banking and Financial Institutions Act, 1989, the Malaysian Central Bank licenses and controls organizations, for example, banking, cash broking, markdown houses, arrangement of credit and account, dealer banking, store taking and certain other money related organizations.

iii) Building and Construction

All Companies in this field must get a permit from the Construction Industry Development Board (CIDB) preceding fusing in Malaysia and before embraced any development and related exercises in the nation.

iv) Oil and gas industry

While consolidating in Malaysia, organizations which wish to investigate and grow upstream oil and gas holds in Malaysia are required to consent to a creation offering arrangement to Malaysian state Oil Company Petronas.

v) Wholesale and Retail Trade

While joining in Malaysia, note that all recommendations for remote association in discount and retail exchange must acquire the endorsement of the Committee on Wholesale and Retail Trade (CWRT).

There is no limitation on most extreme shareholding for example outsiders can claim 100% of an organization. In the event that they own over 30% of any organization, they will be required to apply for Foreign Investment Committee endorsement, the procedure of which takes over a half year yet endorsement is regularly given. Regularly, private ventures won't have any significant bearing for any FIC endorsement except if there is business with the administration divisions.

Discount and Retail Trade (WRT) permit is required by all organizations that are in the discount, retail, exchanging, import/fare and eatery business which have outside shareholding. The WRT permit is required by all the said business areas before they can apply for an expert work license.

The Companies with outside proprietorship that are occupied with distributive exchange are required to acquire a discount and retail exchange (WRT) permit from the Malaysian Ministry of Domestic Trade and Consumer Affairs (MDTCA) [KEMENTERIAN PERDAGANGAN DALAM NEGERI DAN HAL EHWAL PENGGUNA (KPHDN)]. For WRT, the base settled up capital necessity is RM 1 million. Different organizations with outside possession that are not occupied with distributive exchange don't require a WRT permit.

3. Remote INVESTMENT COMMITTEE APPROVAL

Remote financial specialists may need to get the endorsement from the FIC for the accompanying:

any proposed obtaining by outside interests of any considerable fixed resources in Malaysia

any proposed obtaining of benefits or any interests, mergers and take-overs of organizations and organizations in Malaysia using any and all means, which will bring about possession or control going to remote interests

any proposed obtaining of 15% or a greater amount of the democratic force by any one outside intrigue or related gathering or by remote enthusiasm for the total of 30% or a greater amount of the democratic intensity of a Malaysian organization and business

control of Malaysian organizations and organizations through any type of joint-adventure understanding, the board understanding and specialized help or different courses of action

any mergers and take-over of any organization and business in Malaysia whether by Malaysian or outside interests

some other proposed securing of advantages or interests surpassing RM10 million in esteem whether by Malaysian or outside interests (the edge was updated to RM10 million with impact from 21 May 2003)

Any obtaining by Malaysian interests of offers in Malaysian fused organizations which establishes over half of the democratic intensity of the organization, for example where it increases legal control.

Explicit ventures endorsed by the Government are excluded from the prerequisite of acquiring FIC's earlier endorsement. Typically, private ventures won't have any significant bearing for any FIC endorsement except if there is business with the administration offices.