A Guide To MBSP Business License Applications
If you plan to set up a business in one of Penang’s mainland districts, you’ll need a valid business license from Majlis Bandaraya Seberang Perai (MBSP), the Local Authority for the area.
If that’s you, our guide provides an overview of MBSP business license applications, including:
- areas under MBSP jurisdiction
- what an MBSP ‘business license’ means
- required documents
- where to apply
- validity periods and renewals
Note: We’ve kept this guide general to be applicable to everyone, so:
- For enquiries about specific businesses, do get in touch
- For FULL details, refer to MBSP’s official signboard rules and premise requirements
- If you plan to operate on Penang Island, see our guide to MBPP business licenses
Now, let’s begin.
Areas under MBSP jurisdiction
MBSP is responsible for the following areas in Penang:
- Kepala Batas
- Tasek Gelugor
- Bagan
- Permatang Pauh
- Bukit Mertajam
- Batu Kawan
- Nibong Tebal
MBSP premise, signboard, and composite licenses
Though MBSP issues several types of business licenses, all businesses need two:
- Premise license
- Signboard license
Being so common, both licenses can be applied for simultaneously under a composite license, which requires meeting MBSP’s premise and signboard requirements.
Signboard requirements
MBSP has three main types of requirements for business signboards:
- Language
- Size
- Content
Language
- Bahasa Malaysia must be prioritised, either alone or alongside other languages, and receive approval from Dewan Bahasa & Pustaka
- If other languages are used, their text must not exceed ¾ of the Bahasa Malaysia text.
Size
- The signboard must not cover the entire glass, windows, or building façade.
- Signboards that project outwards are only allowed from the second floor and above.
- Signboards across multiple shoplots need additional liability insurance.
Content
- Text and graphics must be balanced and not exceed 2/3rds of signboard height.
- Must include company or business name.
- The business activity must be stated in Bahasa Malaysia in the upper left corner.
- If brand name is the focus, company and SSM details must be in the lower left corner.
- The brand name must be more prominent than the business activity text.
- MBPP business license number must be displayed in the lower right corner
- Trademarks, logos, taglines, and slogans don’t need to be translated into Bahasa Malaysia, but must be a maximum height of ¾ of the primary brand display text.
- Nothing related to cigarettes, offensive or inappropriate images, or indecent behavior.
Note: Additional rules apply to signboards on heritage buildings as MBSP requires businesses to preserve the area’s historical aesthetics.
Premise requirements
The full list of premise requirements is very long and mostly apply once you start operating, so we’ll keep this list to the ones you should start doing from day one:
- Ensure the business license is always displayed clearly
- Keep toilet facilities well-maintained and clean
- Provide a first aid kit equipped with essential medicines
- Prepare a covered trash bin of appropriate size
- Prepare two separate containers to segregate recyclable from general waste.
- Mount at least one 9kg ABC Dry Powder Fire Extinguisher on the wall at a height of 1m
Some businesses like car workshops are also required to rent a certain number of parking spaces in front of the business premises.
Required documents
All applications need to submit copies of the following:
- applicant’s photograph
- applicant’s MyKad or passport
- business registration documents
- lease agreement
- location plan
- floor plan
- signboard design with measurements
- photos of premise entrance from outside
- latest cleared assessment tax receipt
- land grant or Temporary Occupation License
- Certificate of Fitness for Occupation (if new building)
Please note that if you don’t already have a business entity, you’ll need to register an Enterprise or incorporate a Sdn Bhd before applying.
Validity period and renewals
Your MBSP business licenses are valid for one to three years from the date of issuance, with one year approvals being more common.
Renewing a license for longer periods becomes easier the longer you’ve been in business and proven to be trustworthy and responsible.
Where to submit your application
Most businesses can choose between a physical and virtual submission.
Option 1: Physical submission
Visit the MBSP Licensing Department at MBSP headquarters in Bukit Mertajam where you can get all the relevant application forms and submit it with your supporting documents:
If you are currently outside of Penang or value convenience, we recommend the digital option.
Option 2: Virtual submission
Most businesses can submit their license applications online via MBSP’s SPEEDBiz portal.
As it’s your first time, you’ll need to register a new account.
Here are the official SPEEDBiz registration manual (unfortunately only in Bahasa Melayu).
From here, you can submit all your supporting documents, make payment, and renew your license when the time comes.
And that’s pretty much all you need to know for now!
Pre-application checklist
For a smooth license application, ensure you’ve done the following five things:
- Registered an SSM Enterprise or Sdn Bhd
- Found a suitable premise
- Secured the right supporting documents
- Designed a signboard that complies with MBPP guidelines, and
- Prepared floor plans and taken photos of your premises
All the best, and you know we’re here if you need help, right?
Let MISHU help with your MBSP license application
The MISHU business license team has helped hundreds of local and foreign businesses across multiple industries with their MBSP business license applications, and we’d love to help you too!