Resources · Business setup
Setting Up an Industrial Business in Malaysia
Establishing a company and securing permission to operate a factory are separate processes. Requirements depend on your activity, equipment, workforce and location. Use this guide to identify the agencies to consult, rather than as confirmation that a business or property is approved.
Official sources last checked: (Malaysia time; 25 October UTC).
01
Register the business with SSM
Confirm the appropriate legal structure and incorporation requirements with SSM and your company secretary. Prepare the proposed activities, address, director and shareholder particulars, and follow SSM’s current submission instructions. Registration establishes the business entity; it does not replace permission to operate at a particular site.
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02
Confirm the MIDA / MITI route
Discuss the proposed manufacturing activity with MIDA and confirm whether a manufacturing licence or exemption route applies. Where required, applications go through MIDA for MITI approval. Investment incentives are a separate consideration. Company size, an industrial address or an incentive application does not itself establish permission to operate.
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03
Check the council, OSC and state land requirements
Before committing to a purchase, lease or fit-out, check the permitted use, title conditions, planning, building and premises requirements with the relevant authorities and advisers. Alterations, a new process or a change of use may need further approvals. OSC 3.0 Plus supports development-plan submissions to participating councils in Peninsular Malaysia; it is not a single national operating licence. State land processes remain separate, and a Selangor example is not a rule for every state.
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04
Screen the process with DOE and environmental advisers
Review the proposed processes, emissions, effluent and waste handling with the Department of Environment (DOE) and qualified environmental professionals. Environmental impact assessment applies to prescribed activities, rather than every factory. Sabah and Sarawak also have state environmental regimes. Approval of an EIA report is not the same as approval of the project.
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05
Review fire, workplace and plant safety
Check fire-safety requirements with BOMBA and the building professionals. A Fire Certificate applies to designated premises; the route is not identical for all buildings. Confirm workplace and plant duties under the current occupational safety and health framework with DOSH and qualified advisers. Prescribed plant may require installation approval, inspection and a certificate of fitness before use.
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06
Confirm utilities for the actual site and demand
Ask the site’s electricity and water providers to confirm the connection process and the capacity needed for your operation. An existing meter does not demonstrate adequate capacity. TNB applications may require a contractor or consulting engineer, depending on the supply. Water responsibilities vary by location; Air Selangor serves Selangor, Kuala Lumpur and Putrajaya. Confirm the relevant providers elsewhere.
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07
Set up tax, customs and payroll obligations
Confirm company and employer tax duties with HASiL, including applicable deductions and returns. Check Customs requirements for sales-tax registration and any import or export restrictions relevant to the goods. Arrange EPF and PERKESO registration and contributions where applicable, including eligible non-Malaysian employees. Do not assume foreign nationality removes these obligations. Use the agencies’ current eligibility rules and contribution information rather than historic tables.
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08
Confirm employment and immigration permissions
Check the applicable labour approvals and Immigration pass before employing non-Malaysian staff. For expatriates in manufacturing and selected services within MIDA’s remit, MIDA identifies MES as the submission platform from 1 June 2026. Follow the current MIDA, labour and Immigration instructions for the relevant worker and sector. Investment or company approval does not give an individual permission to work.
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Define the premises your operation needs
Prepare your activity, preferred location, area, power and move-in requirements. We can help you explore property options while your advisers and the authorities confirm site suitability and approvals.