1) Must be registered with

• The Companies Commission of Malaysia (SSM) under Companies Act 1965; OR

• Organisations supported by Ministries / Government Agencies; OR

• International organisations certified by the Ministry of Foreign Affairs.

2) Companies are required to obtain the necessary license(s) / approval(s) to legally operate their businesses in the country.

It is the responsibility of the company to ensure it has all the valid required license(s) and approval(s) and submit them for company registration requirement.

3) For Manufacturing

Regulators;

• Ministry of International Trade and Industry (MITI) Type of license - Kelulusan Lesen Berdasarkan Akta Penyelarasan Perindustrian, 1975

• Royal Malaysia Customs Type of License - Kelulusan Lesen di bawah Seksyen 65, Akta Kastam 1967

• Others (based on industry, not mentioned here)

4) Company engaging in manufacturing activity as per Industrial Coordination Act 1975 requires a company to apply for a Manufacturing Licence;

• paid up capital of RM 2.5 million and above

• shareholders funds of RM 2.5 million and above

• employing 75 or more full time paid employees

5) Company Exempted from Manufacturing licence;

A company with a paid up capital/shareholder’s fund not exceeding RM2.5 million or manpower less than 75 people may apply for a confirmation letter that the company is exempted from manufacturing licence approval.

1) Types of Incentives

Tax exemption under the Promotion of Investments Act (PIA), 1986 and Income Tax Act, 1967:

1. Pioneer Status (tax exemption of 70% - 100% of statutory income for a period of 5 - 10 years) - however eligibility can only be ascertained after application or

2. Investment Tax Allowance (an allowance of 60%-100% on qualifying capital expenditure incurred within a period of 5 years); and

3. Reinvestment Allowance (60% on the qualifying capital expenditure incurred and can be offset against 70% of its statutory income for the year of assessment. The RA will be given for a period of 15 years).

Project must be consistent with the national economic and social objectives and promotes an orderly development of manufacturing activities in Malaysia.

2) Import duty exemption on

• raw materials used for the production of finished goods for export market, irrespective of local availability;

• raw materials for which grades and specifications are not produced locally for local market; and

• raw materials used to produce nil duty finished goods, irrespective of local availability.

With complete documentation, the time taken to process with no changes is 6 weeks.