So you want to run a physical business with a shoplot. Recently, I went through the entire process of doing that with initial zero knowledge. However, instead of running to a runner (pun intended), I decided to do everything myself in order to learn how to do it and blog about it. It is simple and inconvenient process but totally doable. I also save a few k in the process. Let’s get into it because business people are busy people. Bear in mind that I registered my business in West Malaysia, in Kajang, so the process may differ in every local council and state.
- Scout for a shop and sign that tenancy agreement
This process started for me in January 2017. I looked for a preferred shoplot online and also by going to the venue I wanted and just walk about to call any agent numbers. I looked at total of three venues and settled on one. The one I settled for was what I saw when walking about and not what I looked for online. Somestimes it may be easier to just go the place and see the real thing from outside. I was looking for an office that was equipped with aircond, blinds, carpet etc. So I was able to see from outside that the aircond is still there. I called the agent and made an appointment for the week after and after checking the location and interior, made the decision and paid the booking fee of RM1000. This booking fee was later to become the 1st month rental. If I decided not to rent later, this will not be refunded. This price may vary with different property agents. Before paying is also a good time to discuss and negotiate any other things you need. The booking fee need to be paid on the spot in order that the agent won’t be showing the unit to other possible tenants. After the tenancy agreement is done, which is usually around 3 days, the total deposit need to be paid. For mine, it was RM3800 with 2 months deposit, and utitilies of RM1500 plus stamp agreement RM300. This has to be ready money before deciding on renting a shop or office. The document needed is just photostated IC. Right, I haven’t even gone into the License part.
2. Register a business name license with SSM (only for West Malaysia)
SSM stands for Suruhanjaya Syarikat Malaysia. I have to register my business name with SSM but SSM office is only in Putrajaya, Cyberjaya..none in Kajang. The easiest method is to register online at https://ezbiz.ssm.com.my/. After getting a username and password online, I cannot still register for my business name, I need to go to one of the counters in Putrajaya to activate my account by bringing the email that was sent to me and my NRIC (not a photocopy). I went to the Putrajaya one (other office locations here) Bear in mind their opening hours and lunch hours. There were so many people and the line was crazy long. I thought it would be impossible to register. However, I decided to ask if I can just register online and just activate my account without following the queue number and it was allowed. It only took seconds for them to activate it. So after doing that I went home straight and signed into the above ezbiz site and keyed in my business name and particulars. Immediately I received the license by email that I printed out which was the Certificate of Business Registration Borang D, Business Information Form and Borang A. All these are needed for the trade license later so I can install a signboard. I paid RM130.60 for this part.
3. Register a trade license with MPKJ (or your local council)
Now head to MPKJ to get the form (1st visit) or simply print it online. The form actually cost RM5. The business licensing counters are just located at the left of the main entrance ground floor. This process is not hard as there are not a lot of people applying license everyday. Get a number and get the form and bring it back to be filled because there are many paper to fill in. In the meantime, get a rubber stamp as it is needed. Rubber stamp cost about RM30 for a self inking one.
Documents to prepare for MPKJ (2nd visit)
1 copy of owner’s passport size photo
2. A copy of I/C of owner
3. Premises front view, rear view (4 copies in colour) Side view (1 copy) and inside office view (2 copies)
4. Location plan, visual advertisement signboard, Certificate of Fitness and Title (4 copies each)
5. A copy of:
a) Company Registration (Borang 9, 24 and 49 / B or D)
b) Tenancy Agreement (Perjanjian Penyewaan)
c) Assestment (Cukai Pintu) Some of these need to take from owner
Bring all these to MPKj again and they will print out a letter to the Fire Department. Once again, make copies 1 of each of the above except the photos to be attached for the Fire Department or Bomba which for Kajang under Hulu Langat is the Bomba in Pandan Indah Cheras. So, yes make a trip to Bomba and be there before 1pm. After putting a chop on my form, the officer asked me to call them again in 2 weeks if they never pay a visit to my shop. I’m not sure, what is the usual procedure.
You will need to buy 2 fire extinguishers (Dry powder RM150 CO2 RM180) at least for your office with your office addressed registered on it. The supplier of the fire extinguishers will provide a document that need to be submitted to the Bomba before they will chop on your letter. That letter together with all the documents need to be submitted to MPKJ. These fire extinguishers need to be renewed annually.
Go back to MPKJ, submit all the documents.
They will print a payment form, go to the payment counter on the right side of the main entrance and pay RM55 (RM50 being just the fee for processing your application RM5 being the form). After payment, bring the form back to the counter to the same person you submitted to. There will be another payment before I can get the license that need to be displayed in my office. After submitting the form and payment, I was asked to come back the next day to pick up the license. That was pretty fast, I thought it would a couple of weeks.
At MPKj again the next day, I went a bit too late at 11.40am and it was a Friday. They wouldn’t give out queue numbers anymore as it was about time to close. I went straight to the counter and was initially told to come back at 2.45pm but seeing that I only wanted to pay and get the license which was done, the officer helped me immediately. I was to write in a log book my name, ic, date and signature and was given this receipt to make another final payment. This payment is for 1 year business license for an administrative office RM300 and RM150 for the signboard with lights. Every different type of business will have a different fee. RM10 is just for the pocket file to hang the license in my premise.
After making payment of RM460, finally I received my business and trade license and can operate with a peace of mind.
So next, I will have to get a signboard maker to hang my signboard which will cost about RM4000. So these are the total steps how to license your business without counting on a runner. If you don’t have the time to spare, then runner is the way to go.