Licenses needed to open a restaurant.

To become a restaurant owner is not as simple as great food and drinks. It’s actually a whole lot of paperwork to get started.

You already have a seamless business plan, your location is amazing, your concept is extraordinary and you’ve hired your best chef along with the front of the house team. And you are good to open for business right? Not quite.

Opening a restaurant requires juggling many moving parts and can feel like a difficult undertaking. But the procedure is a more manageable feat when broken down. If you’re curious about how to open a restaurant, We’ve listed licences that you’ll need in order for you to have an easy opening! 

Forming a Company: 

First of all, you will need to form a company and to do so you have to register your company at SSM (Suruhanjaya Syarikat Malaysia). You can either register your company SDN BHD ( Sendirian Berhad/ Private limited Company) or Enterprise. But what are those and which one is good for your business? 

SDN BHD or Enterprise?

Enterprise

Enterprise is considered a one-man show business, where the owner and the business are considered as one entity. The owner would be entitled to all the net profit generated from the business as a reward, because all the funds, effort, and hard work comes from the owner. Maintaining an enterprise business is easier and cheaper because an enterprise business does not have to appoint a company secretary or have the company audited. 

However, an enterprise company will cease to operate if the owner dies and that also means the owner is also liable whatever debt that the company owned considering the business and the owner is one entity. Normally enterprise is suitable if you are running a small to medium-size business because the business risk is lower. An entrepreneur might opt for enterprise due to a limited source of funds, which would come either from their own savings or borrowings.  If you are registering for a sole proprietorship using a personal name stated on your identification card the fee will be RM 30. Meanwhile, for partnership using a trading name, the fee will be RM 60.

SDN BHD. (Sendirian Berhad / Private limited company)

To form a SDN BHD company you must have directors and shareholders in place for the formation. Contrary to enterprise, for a company under SDN BHD is a separate legal entity to the owners or founders which means that the company will still exist even after the founder is deceased. A SDN BHD company can also purchase and sell properties under its own name or enter into any agreement. Similarly, all liabilities that the company has are not borne by the founders or owners.

Hence, any profit generated from the business belongs to the company and the shareholders are only entitled to the dividend declared out of the distributable net profit and not from the capital of the company. To maintain a SDN BHD company is more costly because you must employ a Company Secretary and an auditor which will cost about RM 2500. It is the responsibility of the director of the company to abide by the act and regulations. That is why the directors must appoint a company secretary to ensure all requirements had complied with and to take care of all statutory books and records.

Business Premise License & Signboard License.

Business Premise and Signboard license can be applied together at the local municipal office like DBKL (Dewan Bandaraya Kuala Lumpur)  or MBPJ (Majlis Bandaraya Petaling Jaya). The requirements for the licenses may vary according to each local authority and the cost for the business premise and signboard license is RM500 DBKL and RM550 for MBPJ. In general, The following documents are required for a business premise license application : 

Required document and regulation for Business Premise License & Signboard License application:

1. Copy of food handling certificate.

2. Copy of Typhoid injection card given by the doctor.

3. List of all employee’s names. 

4. Photo of grease traps in your establishment.

5. Pest control service agreement contract certificate. 

6. Supporting document from the local Fire & Safety department*

7. Copy of fire extinguisher permit/receipt**

* Subjected to terms and conditions of Local Authorities.

** Minimum of 2 unit fire extinguishers for your F&B premise.

For Enterprise (Sole-proprietor / Partnership)

1. Certificate of Registration of Business (Form D) – 1 copy;

2. e-SSM Business Profile – 1 copy;

3. Photos of your business premise (front and interior of premise);

4. Copy of any Business owner/Partner’s NRIC as stated in Form 49 – 1 copy;

5. Sample of signboard indicating design and colour (if applicable);

6. Photos showing the location of the signboard (if applicable).

For Company

1. Certificate of Incorporation (Form 9) – 1 copy;

2. Return of Particulars of Directors, Managers and Secretaries (Form 49) – 1 copy;

3. Photos of your business premise (front and interior of premise);

4. Any one Director’s NRIC / Passport as stated in Form 49 – 1 copy;

5. Sample of signboard indicating design and colour (if applicable);

6. Photos showing the location of signboard (if applicable)

Music License

What good of a restaurant if you eat in silence right? You will have to set the mood for your customer so that they feel comfortable. So much, that you will definitely play music on your premises. However, before you can start playing songs on your premises, you’ll need to get a license from Music Rights Malaysia. First, you’ll need to download your license application under Restaurant/Cafe/Coffee house/ Food Court/ Fast Food Joint/ Canteen. The fee for the music license is subjected to the size and type of establishment. 

The tariff is as below:

Picture Credit: Music Rights Malaysia

Liquor License :

If you are planning to serve liquor in your establishment, you will need to apply for a liquor license via your local municipal authorities. The purpose of this license is to regulate all activity types involved in the sale of intoxicating liquor. 

These activities include:

1. Public House Licence - for the retail sale of intoxicating liquors, excluding toddy, for consumption within premises or where it is sold. Fees: RM 660.00

2. Beer House Licence - for the sale of beer either for consumption within the premises or where it is sold, public house license holders are exempt from acquiring the Beer House Licence. Fees: RM 480.00 

Checklist and guidelines for Applying for Liquor License:

1. Liquor license application form ( Excise 27 - Pin. 1/84) that is to be completed.*

2. A copy of the business address/ Business name/Owner changes form.*

3. A copy of the applicant’s identification card*

4. A copy of the business license/ premise license or the application.*

5. Images of the interior and exterior of the premises.*

6. A copy of the applicant’s photo (passport size)*

7. A copy of the location plan (A4 Size) *

8. 4 copies of stamped tenancy agreement or S&P (hand manually to local municipal authorities) 

9. 4 sets of advertisements - Original newspaper cuttings (daily) (to be hand manually)

• 2 days in Malay Mail (consecutively) **

• 2 days in Metro Harian (consecutively) **

* To be sent online to local municipal authorities.

** Total of 16 pieces. 

Halal License

If you are planning on opening a halal restaurant or you already have a restaurant and you are planning to offer halal food, the best option is to contact the local Halal certification body for assistance and certification. It is of utmost importance for the restaurant owners to fully understand the concept of Halal Food. Using meat and ingredient vendors that are halal certified is of utmost importance to ensure complete Halal integrity. The authenticity of the certificate should also be checked out prior to deciding on a vendor. Application for the Halal Confirmation Certificate must be submitted directly to JAKIM (Jabatan Kemajuan Islam Malaysia) JAIN (Jabatan Agama Islam Negeri)  or MAIN ( Majlis Agama Islam Negeri), whichever one is relevant.

The application must be submitted on-line completed with the attachment of required documents and relevant certificates as listed below:

1. Company profile

2. Company / business registration

3. Name and description of product/menu for certification

4. Ingredients used

5. Name and address of manufacturer/ingredient supplier

6. Halal status for ingredients with the halal certificate or product specification for critical ingredients (if relevant)

7. Type of packaging material;

8. Manufacturing process and procedure;

9. Other documents such as HACCP, ISO, GHP, GMP, TQM, etc. (If any); and

10. Location map of your premise

11. The applicant must create a "Halal Confirmation Certificate" file to store all relevant documents for reference during premise inspection.

The Cost of Halal Certifications are as follows: 

Now that your licensing and permit are ready, and construction is underway. It’s time to plan for a soft opening! But how do you plan a successful soft opening? Fret not! We got you covered!

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License Checklist Download

CALL US AT 03-8408 1999 TO HIRE A RUNNER!

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Our community understands because it's full of F&B owners just like you. You're welcome to be part of it.

To help the industry grow and flourish, we created a Whatsapp chat group for F&B owners in Malaysia.  
The only criteria to join is having an F&B outlet that is already opened and operational.

We will be sharing more ideas on how to tackle this situation, be the first to know! 

Dina Wan is the Content and Community Specialist at iCHEF Malaysia . She also manages Malaysia iCHEF Club a growing community of F&B owners in Malaysia- organising events and online newsletter. She has over 10 years of experience in the F&B industry as a Pastry chef and you can find her baking and cooking up a storm in her tiny kitchen making food and desserts for her friends when she is not working.