How to Obtain a Construction License in Malaysia

Updated on Thursday 16th March 2017

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Opening a construction company in Malaysia involves the same steps as for any kind of enterprise in the country, with the difference that you need to obtain the special construction license which is issued by the CIDB (Construction Industry Development Board) in the country. Our company formation specialists in Malaysia are ready to provide you with the necessary guidance when applying for a construction license. We remind that you can also obtain suitable help for the company registration procedure in Malaysia.

What you need to know about the construction license in Malaysia

A local or foreign entrepreneur who wants to start his construction business in Malaysia needs to apply for a CIDB license, considering that if he will not proceed in accordance, a fine will be imposed. Knowing the main fields of activity, the following categories need to be considered when applying for a CIDB license in Malaysia:

•    building construction;
•    civil engineering construction;
•    electrical and mechanical construction.

The CIDB license is available between one and three years, with the possibility to renew this important document. Considering the grades of CIDB schemes according to the established capacity (square meters and volume), a certain tax will need to be paid when applying for the construction license. The CIDB in Malaysia must be informed of the value of the construction project, which must not exceed RM 500,000,000 for foreign contractors established in the country. In this situation, the fee will be settled at 0,125% from the registered construction project.

If you want to set up a company in Malaysia it is best to solicit help, guidance, and information in this matter from our experts in company incorporation in Malaysia. Moreover, it is good to know that the company registration in Malaysia can be an easy process if all the needed documents are prepared with our team and approved by the authorities in charge.

Consider the contractor rules in Malaysia

If you plan a construction business in Malaysia, it is recommended to verify the legislation in this domain and to understand the terms for issuing the license. For instance, the CIDB in Malaysia needs to know the real sum of the project, and if it is worth more than RM 500,000,000 without noticing the authorities, the license can be withdrawn and penalties of about RM 5,000,000 will be imposed.

Other imposed construction licenses in Malaysia

Besides obtaining the CIDB license in Malaysia, one should know that the following certificates are mandatory for a construction company in the country:

•    Bumiputera Status Certificate to participate in government projects;
•    Sijil Perolehan Kerja  Kerajaan for allocated construction projects;

We remind that you can receive complete and suitable assistance if you want to obtain a construction license in Malaysia, so do not hesitate to contact our team of company formation representatives in Malaysia.


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