19 Businesses In Kuala Lumpur Restricted From Foreign-Owned Companies
Dewan Bandaraya Kuala Lumpur (DBKL) is the Local Authority for many key business areas in Malaysia, including Taman Tun, KLCC, and the ever-shiny Bukit Bintang.
As these locations are expat hotspots, we often get enquiries from foreign entrepreneurs looking to start businesses in the area, unaware that DBKL restricts foreign participation in that sector.
To help our foreign entrepreneurs plan ahead, below we’ve laid out:
- DBKL’s list of activities with foreign restriction
- a list of areas under their jurisdiction, and
- two ways to get around this
Let’s begin.
Restricted activities
As of June 2025, DBKL will not issue premise or signboard licenses to foreign-owned companies for the following activities:
- Supermarkets / hypermarkets / mini marts (Under 3000 sqft)
- Grocery stores / 24-hour convenience stores
- Permanent wet markets
- Petrol stations
- Roadside stalls
- Non-exclusive clothes, shoes, and bag retail stores
- Non-exclusive F&B outlets
- Jewelry stores
- Herbal / health products
- Traditional Chinese medicine
- Non-exclusive vehicle workshops
- Non-exclusive glass or aluminium manufacturing
- PC and PC accessories retail stores
- Furniture
- Barbershops / hair salons
- Internet cafés
- Phone accessories retail stores
- Laundromats
- Spas
This was translated and condensed from DBKL’s official list, only available in Bahasa Melayu.
Defining non-exclusive
A non-exclusive business is one that sells commonly available products or services without any distinctive brand or value proposition, and which would directly compete with local SMEs.
By contrast, a business with exclusivity offers a truly unique product / service, or has an established brand, making it less of a direct competitor to local SMEs.
If you own a well-known brand in your home country or a unique food concept not yet available in Malaysia, you can apply to set up shop in Kuala Lumpur. Just note you’ll need a Wholesale, Retail, Trade (WRT) license which requires RM1 million in paid-up capital!
Areas under DBKL jurisdiction
The following areas in the Klang Valley fall under DBKL:
| Zone | Areas Covered |
|---|---|
| Pusat Bandaraya Kuala Lumpur | Entire area |
| Damansara | Taman Tun Dr Ismail, Bangsar, Bukit Damansara, Bukit Kiara, Pusat Bandar Damansara, Kerinchi, Bangsar South, Segambut, Mont Kiara, Sri Hartamas, Sentul |
| Klang Lama | Seputeh, Pantai Baharu, Kuchai Lama, Taman OUG, Sungai Besi, Bandar Tasik Selatan, Sri Petaling, Bukit Jalil |
| Kepong | Kepong, Jinjang |
| Setiawangsa | Ampang, Setiawangsa |
| Cheras | Maluri, Miharja, Bandar Tun Razak, Bandar Sri Pemaisuri |
Basically, look at the address of the premise. If it says ‘Kuala Lumpur’ at the end, then it’s under DBKL.
This is important because some zones are split with areas under multiple Local Authorities.
Getting around foreign restriction
As mentioned in our FAQs on company registration in Malaysia for foreigners, restrictions apply at the national level or only a specific district, depending on the licensing authority.
As DBKL is a district government, here are two solutions if your desired business is on DBKL’s restricted list.
Find a local majority shareholder
If you can find a Malaysian partner, the two of you can incorporate a joint venture with you owning 40%, making it a locally owned company.
This happens very frequently, which is why you’ll see foreign involvement in these businesses all over the city.
Check other districts
Each Local Authority sets its own rules, including what sectors to restrict from foreign participation.
While DBKL manages many popular business areas, there are other popular locations in the Klang Valley under other authorities (like Petaling Jaya under MBPJ) that may be more lenient, so check with them.
And if you’re not sure where to start, you can always ask us!
Let MISHU help you start a business in Malaysia
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