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Manufacturing License




Approval and Licensing


The Industrial Co-ordination Act 1975 (ICA)


The ICA is a Malaysian law that was introduced to regulate the manufacturing sector in the country. The ICA requires all manufacturing companies with shareholders' funds of RM2.5 million and above or engaging 75 or more full-time paid employees to apply for a manufacturing license.


What is a manufacturing license?


A manufacturing license is a permit issued by the Malaysian government that authorizes a company to engage in manufacturing activities. The license is valid for a period of five years and must be renewed thereafter.


How to apply for a manufacturing license


To apply for a manufacturing license, companies must submit an application form to the Malaysian Investment Development Authority (MIDA). The application form must be accompanied by the following documents:

  • A copy of the company's Certificate of Incorporation

  • A copy of the company's Memorandum and Articles of Association

  • A copy of the company's most recent audited financial statements

  • A business plan for the proposed manufacturing activities

  • A detailed description of the company's manufacturing process

  • A list of the company's machinery and equipment

  • A list of the company's products

Guidelines for approval of industrial projects


The Malaysian government has set the following guidelines for the approval of industrial projects:

  • Projects must have a Capital Investment Per Employee (CIPE) of at least RM140,000.00

  • The total full-time workforce of the company must comprise at least 80% Malaysians

  • The total number of managerial, technical, and supervisory levels (MTS) must be at least 25% of total employment or having a value-added (VA) of at least 40%

Exemption from the manufacturing license


Companies with shareholders' funds not exceeding RM2.5 million and employing not more than 75 full-time paid employees may apply for an exemption from the manufacturing license.


Benefits of being exempted from the manufacturing license


Companies exempted from the manufacturing license are eligible to apply for various facilities from the government, such as:

  • Import duty exemptions for machinery and equipment and raw materials

  • Investment incentives under the Promotion of Investments Act 1986 and the Income Tax Act 1967

Conclusion


The ICA is an important piece of legislation that helps to regulate the manufacturing sector in Malaysia. The ICA ensures that manufacturing companies meet certain standards in terms of investment, employment, and technology. Companies that are exempted from the manufacturing license are still eligible to apply for various facilities from the government.


Contact MIDA for more information


If you have any questions about the ICA or the manufacturing license application process, please contact the Malaysian Investment Development Authority (MIDA).


How Bestar can Help


Bestar provides a wide range of services to businesses, including manufacturing license consultancy services. Bestar can help manufacturing companies in Malaysia with the following:

  • Understand the ICA and the manufacturing license application process: Bestar has a team of experienced consultants who can help manufacturing companies to understand the ICA and the manufacturing license application process.

  • Prepare and submit the manufacturing license application: Bestar can help manufacturing companies to prepare and submit the manufacturing license application, including all of the required documentation.

  • Follow up with the authorities: Bestar can follow up with the authorities on behalf of the manufacturing company to ensure that the application is processed quickly and efficiently.

In addition to manufacturing license consultancy services, Bestar also provides a range of other services to manufacturing companies in Malaysia, including:

  • Company incorporation: Bestar can help manufacturing companies to incorporate their companies in Malaysia.

  • Accounting and tax services: Bestar can provide accounting and tax services to manufacturing companies in Malaysia.

  • Business advisory services: Bestar can provide business advisory services to manufacturing companies in Malaysia, such as market research, financial planning, and strategic planning.

Bestar's manufacturing license consultancy services can help manufacturing companies in Malaysia to save time and money, and to ensure that their application is processed quickly and efficiently.


Here are some specific examples of how Bestar can help manufacturing companies in Malaysia with their manufacturing license applications:

  • Bestar can help manufacturing companies to identify the specific requirements for their manufacturing license application, based on their industry and the nature of their activities.

  • Bestar can help manufacturing companies to gather and prepare all of the required documentation for their manufacturing license application.

  • Bestar can review manufacturing companies' manufacturing license applications to ensure that they are complete and accurate.

  • Bestar can submit manufacturing companies' manufacturing license applications to the relevant authorities.

  • Bestar can follow up with the authorities on behalf of manufacturing companies to track the status of their applications and to resolve any issues that may arise.

Bestar's manufacturing license consultancy services can give manufacturing companies in Malaysia peace of mind, knowing that their applications are being handled by experienced professionals. Contact us today!

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