15 FAQs On PBT Licenses In Malaysia

Across sectors, businesses in Malaysia often need the same licenses from their shared Pihak Berkauasa Tempatan or Local Authority.

There are 151 different Pihak Berkuasa Tempatan or Local Authorities in Malaysia, each free to set their own rules and regulations for the various business licenses issued. Luckily, all share the same goal when it comes to licenseing: Ensure businesses operate responsibly!

As a result, there is significant overlap between Local Authorities and below we answer 15 top questions on PBT license applications and renewals in Malaysia.

Let’s begin.

1. What is a PBT license?

A PBT license includes any license issued by a the local district level government which allows a business to operate in their jurisdiction.

For almost all businesses, this involves two licenses:

• a premise license, and
• a signboard license

Most PBTs allow these licenses to be applied for simultaneously as a composite license. Here’s an example of a composite license issued by the Melaka PBT known as Majlis Bandaraya Melaka Bersejarah.

PBTs are also responsible for many other permits such as entertainment and liquor licenses, but these are obviously a lot more situational and won’t be needed by every business. .

2. Can I see some PBT license samples?

Sure, here are some examples of composite licenses from various PBTs in Selangor, Penang, dan Kuala Lumpur we’ve helped businesses apply for.

We’ve redacted personal details, so if you feel like downloading or sharing these documents, by all means.

Get in touch if you’d like to see sample licenses from other PBTs in Malaysia.

3. How can I find out my PBT?

You can refer to the mailing address of your business premises and then check which Local Authority ocers that area using a good old Google search.

For example, premises in Sri Petaling will need licenses from the Petaling Jaya Municipal Council (MBPJ).

4. How do I apply for a PBT license?

You need a business premise and entity to apply for a PBT license, so the process usually looks like this:

1. Register an Enterprise or Sdn Bhd (if you haven’t)
2. Find and rent a suitable premise
3. Design a signboard and collect supporting documents
4. Submit the PBT composite license application and pay the processing fee
5. Wait for PBT officers to inspect your premises
6. Make any necessary changes (there will usually be minor details).
7. Receive approval, pay the annual license fee and get your license issued

If you’re not sure which entity to choose, read our Enterprise vs Sdn Bhd guide 🙂

5. Can I apply for PBT licenses online?

Yes and no – it depends on the PBT!

Most Selangor PBTs have a license application portal for online application, payment, printing and renewal:

• ePenjaja MBSA
• eLesen MBPJ
• eLesen MBSJ
• MyLesen MPK
• e-Lesen MPAJ
• eLesen MPKJ
• e-Perkhidmatan MP Sepang
• e-Lesen MPKL
• e-Permit MPHS
• iP3KS MPKS

Unfortunately, there are still PBTs that require physical submission, especially in rural areas.

6. Is it mandatory to inspect my premises?

It depends on the type of business but most of the time, yes.

A select few types of businesses can get immediate approval, but only very small operations like stalls.

In almost all cases, after the application is submitted, PBT officers will visit the premises and inform your if there are necessary changes to meet their premise requirements for your type of business.

7. Can I operate while waiting for my PBT license?

Yes, but if you get caught, we’re going to pretend we don’t know you!

On a serious note, no, even if it’s just a day earlier, you can’t legally do business before licenses are issued.

However, some PBTs may issue temporary licenses for certain businesses so that they can operate immediately while waiting for PBT officers to conduct an inspection.

For example, MBSJ has a six month license that is approved on the day an application is submitted.

8. What are the rules for a PBT signboard license?

Most PBTs enforce similar signboard requirements, namely

• clear use of the Malay language
• clear display of business type and registration number

The Malay text must be approved by Dewan Bahasa dan Pustaka before your submission.

Some PBTs also require writing in Jawi!

Lastly, the signboard sizing rules vary by PBT, but all applications require a coloired signboard design with measurements as a supporting document.

9. What are the rules for a PBT premise license?

Similar to signboards, most PBTs impose similar premises requirements, namely:

• located in a suitable area
• have sufficient facilities
• does not disturb the surrounding area

Some types of businesses have stricter premises requirements, for example, pet shops cannot be located next to restaurants, and entertainment centers cannot be located near schools.

10. How much do PBT licenses cost?

This question is impossible to answer here because the license price varies according to:

• PBT
• type of business
• size of premises, and
• type and size of signboard

Essentially, each PBT has its own formula for calculating the license price according to the business, so the price often varies for each application even though it’s for the same license.

In our experience, this can be as low as RM300 and up to over RM1,000 per year.

11. What are the required documents?

Applicants must provide the following documents:

• business or company registration documents
• land tax receipt
• Certificate of Occupancy
• rent agreement (if renting a business premises)
• photo of the applicant
• coloured sketch of the business premises sign design
• exterior and interior photos of the premises
• additional supporting documents may be required from agencies such as:
  • Fire and Rescue Department
  • Occupational Safety and Health Department
  • Health Department
  • Veterinary Services Department

Supporting documents vary by business so find out what you need before applying for a PBT license!

12. How long is a PBT license valid for?

The validity period of a PBT license is usually 12 months from the date of approval. However, some PBTs use a pro rata system, where all licenses expire on December 31, regardless of the date of issue.

Don’t worry—in this case, the fee will be adjusted to your actual operating period!

13. How do I renew a PBT license?

Licenses can be renewed through the same method as making a new application.

For PBTs that allow online applications, renewals can also be made digitally, while all PBTs allow physical renewals at their offices.

Applicants need to submit supporting documents such as old licenses and proof of payment.

14. Can PBT licenses be transferred?

This depends on the business entity.

Enterprise licenses are registered under the name of the owner, so cannot be transferred to another party.

For Sdn Bhds, the license is registered under the name of the company, and as the company can be transferred through share ownership, so can the licenses.

15. Where can I get more details?

As one of MISHU’s core services is helping business owners deal with PBTs across Malaysia, we’ve written some specific guides that you might find useful:

• MBJB business license guide
• MPK business license guide
• DBKL business license guide
• DBKL signboard license guide
• MBSA business license guide
• MPAJ business license guide
• MPKJ business license guide

You can also visit your PBT’s website or call their helpline.

And if you want real answers, contact us 😀

Let MISHU handle your PBT license application

Our license application team has helped over two thousand businesses understand and meet PBT licensing requirements nationwide. If you need help, get in touch!