Licensing of Trades, Business and Industries

September 2016
by Wong Mei Ying, Yoon Ming Sun, Lai Yin Yin

The information in this article is intended only to provide general information and does not constitute professional advice or legal opinion.

@2018 Chooi & Company + Cheang & Ariff.
All rights reserved.

The Licensing of Trades, Businesses and Industries (Federal Territory of Kuala Lumpur) By-Laws 2016 (“2016 By-Laws”), enacted pursuant to the Local Government Act 1976 (“Act”), came into force on 1 September 2016 and repealed amongst others, the Licensing of Trades, Businesses and Industries (Federal Territory of Kuala Lumpur) By-Laws 1986 (“1986 By-Laws”).

The 2016 By-Laws set out the licensing requirements for all business activities in the Federal Territory of Kuala Lumpur and consolidate the requirements in relation to the operation of timber stores, launderettes and beauty and health establishments, which were previously governed under respective by-laws, into the current 2016 By-Laws.

It is an offence under the 2016 By-Laws for a licensee to employ any person who is under the age of 18 years old or any foreign worker without a valid work permit to work on the licensee’s premises. The offender will be liable to a fine of up to RM2,000 or imprisonment for a term not exceeding a year or both on conviction. In the case of a continuing offence, the offender will be liable to a fine not exceeding RM200 for each day during which the offence is continued after conviction.

The Commissioner of the City of Kuala Lumpur may require a licensee to pay a deposit to ensure compliance with the relevant laws and conditions of the licence issued under the 2016 By-Laws. The amount of deposit has been increased from up to RM5,000 under the 1986 By-Laws to up to RM50,000 under the 2016 by-Laws.

Any licence issued or approval granted under the 1986 By-Laws before the coming into operation of the 2016 By-Laws shall continue until the licence expires, is amended, suspended or cancelled. The deposit may be forfeited if there is a breach of the relevant laws and conditions imposed

The Licensing of Trades, Businesses and Industries (Federal Territory of Putrajaya) By-Laws 2016 and The Licensing of Trades, Businesses and Industries (Federal Territory of Labuan) By-Laws 2016, also came into force on 1 September 2016.


The information in this article is intended only to provide general information and does not constitute professional advice or legal opinion.

@2018 Chooi & Company + Cheang & Ariff.
All rights reserved.