Open a Transporting and Storage Company in Malaysia
Updated on Tuesday 02nd July 2019
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Malaysia provides an attractive market for starting a business, as it represents one of the most developed countries in the ASEAN region. In the case of those who want to open a company in Malaysia as a transporting and storage business, the country can be a suitable market, since it has one of the top infrastructure systems in its region.
Our team of specialists in company registration in Malaysia can provide an extensive presentation on the rules of law regulating this field of activity, and may also assist with advice on the main registration requirements. Malaysia has a population of more than 31 million citizens and the transportation sector is an important employer and contributor to the country’s gross domestic product (GDP). Some of the main characteristics of this industry are the following:
- at the level of 2016, the transportation sector in Malaysia employed more than 630,000 persons;
- this represented 4.45% of the total workforce employed in Malaysia;
- the transportation and storage sector in Malaysia accounted for 3.5% of the country’s GDP;
- the transportation system in Malaysia ranks on the 19th place, in a study comprising 138 economies;
- the country had more than 47 million railway passengers and more than 91 million air passengers.
What are the regulations for transporting/storage of petroleum in Malaysia?
Companies in Malaysia that are involved in the transportation and the storage of various types of goods must adhere to a set of rules and regulations, depending on the nature of the goods transported across the Malaysian territory. In the case of businesses involved in the transportation and the storage of petroleum, local companies have to comply with the rules set in the Petroleum (Safety Measures) Act 1984; our team of consultants in company registration in Malaysia can assist investors with information on the main regulations deriving from this act.
The act provides the legal framework for the modes of transportation of petroleum, which can be done by land, water or railway. Those who want to register a company in Malaysia as a transportation and storage business have to know that such companies must apply for specific business licenses and permits. In this particular case, transportation and storage companies must apply for a license with the Ministry of Domestic Trade.
Does Malaysia have any licenses for storage units?
Yes, the legislation in Malaysia prescribes several types of licenses for storage units operating on the local market. Storage units in Malaysia can take the form of warehouses and the local authorities can provide three main categories of warehousing licenses, issued for ordinary warehouses, public bonded warehouses or private bonded warehouses.
In order to operate a storage unit here it is necessary to follow the formalities for company formation in Malaysia; depending on the type of license the investor is interested in obtaining here, but also based on the types of goods and products that will be stored in a local warehouse, the licensing procedure will involve different authorities. For example, in the case of those storing hazardous products, the company must obtain an approval from the Department of Environment.
It is also legally required to obtain an approval from the Fire and Rescue Department; the company must also receive a Certificate for Completion and Compliance, issued by the local authority where the storage unit is located, which attests the fact that the company complies with all the necessary requirements.
Provided that the company is interested in storing bonded goods (which are traded in Malaysia and for which the customs duties have not been paid in this country), additional requirements must be met. For example, the storage unit must comply with certain technical requirements regarding its size (for critical goods, the size of the warehouse must be of minimum 50,000 square feet, while for non-critical goods, the storage unit must have at least 20,000 square feet).
What are the main transportation licenses in Malaysia?
Depending on the nature of the services developed by the transportation company in Malaysia, there are several types of transportation licenses. Investors interested in entering transportation services for commercial purposes must apply for a Carrier License A or a Carrier License C; the documents are issued by the Land Public Transport Commission.
Businessmen are invited to contact our team of specialists in company registration in Malaysia for further information on the licensing requirements for transporting and storage businesses. Our representatives can provide full legal representation on the issuance of the necessary permits and may assist investors in any other step regarding the procedure of company formation in Malaysia.