How to Open a Cafe in Malaysia 2026 | Guide to Permit & Licenses

Business Entity Framework in Malaysia

Before you think about paint colours or latte art, pick a legal structure and register it with the Companies Commission of Malaysia (SSM). Many small owner‑operators start as a Sole Proprietorship or Partnership under the Registration of Businesses Act 1956, while outlets with growth plans or outside investors usually set up a private limited company (Sdn Bhd) under the Companies Act 2016. Register all three via SSM’s online portals such as Ezbiz (for Sole Proprietorship and Partnership) and MyCoID (for Sdn Bhd). There you secure your business name, enter owner or director details, and pay the required fees. Follow the online registration and Ezbiz guideline for a smooth submission. Once SSM approves you, the registration documents and number become the identity you’ll need for bank accounts, payment gateways, and POS onboarding.

If you choose Sdn Bhd, follow the Companies Act 2016 rules for directors, company secretaries, and incorporation filings. SSM’s Guidelines for Incorporation of a Local Company explain you must state your business nature (for example, café, restaurant, or F&B services), registered office, business address, and full particulars of directors and promoters. Many cafe owners already plan downstream needs at this stage — local council licences, merchant accounts and POS — because an inaccurate business description or ownership setup can slow approvals later.

Bring foreign owners into the picture and rules tighten. Foreign retail and F&B businesses fall under “distributive trade” and must get approval from the Ministry of Domestic Trade and Cost of Living (KPDN) via a Wholesale Retail Trade (WRT) licence before operating. The Guidelines on Foreign Participation in Distributive Trade require local incorporation under the Companies Act 2016, which means setting up a Malaysian Sdn Bhd first, then applying for WRT license with SSM forms, tenancy agreements, and a business plan. Consultants commonly report that KPDN expects a minimum paid‑up capital of RM1,000,000 for WRT applications for 100% foreign-owned entities.

Capital requirements are a frequent stumbling block for foreign founders. For a typical Malaysian‑owned Sdn Bhd, advisors note the Companies Act permits relatively low paid‑up capital, and many companies start with around RM2,500 for ordinary companies where no special licence applies. However, for distributive trade, specialist advisers and corporate service firms say WRT applications require higher thresholds. If you incorporate with low capital and then apply for WRT, expect queries or rejection until you increase capital, update SSM records, and resubmit.

For a local‑only cafe, the path stays simpler: choose your entity, register via SSM online services, set realistic paid‑up or owner’s capital for your scale, and then apply for local authority food and signage licences. For foreign‑owned cafes, budget time and cash for a Malaysian Sdn Bhd and the WRT licence — plan for the RM1,000,000 capital requirement before you lodge that application. Getting your structure right at the start avoids costly rework when you apply for operating licences, hire staff, or onboard systems such as a POS provider like Eats365, all of which depend on accurate SSM and KPDN records.

Essential Licenses and Permits Checklist

• SSM Business Registration: (Mandatory) Legal identity of your business via Sole Proprietorship, Partnership, or Sdn Bhd.

• Premise & Signboard License: (Mandatory) Issued by local councils (PBT) to permit trading and the use of outdoor signage.

• Food Handler Training & Typhoid Jab: (Mandatory) National requirement for all staff handling food/drink items.

• WRT License: (Mandatory for Foreigners) Required for cafes with foreign ownership prior to operating.

• Halal Certification: (Optional) Essential if marketing to the Muslim community or using "Halal" branding.

• Liquor License: (Optional) Mandatory only if the establishment serves alcohol.

• Music License (MACP/PPM): (Optional) Required if playing copyrighted music in public areas.

• Fire Certificate (BOMBA): (Mandatory for designated premises) Essential safety clearance for the physical building.

1. Business Registration — SSM

Every café must register with the Suruhanjaya Syarikat Malaysia (SSM) before trading. Small operators often choose a Sole Proprietorship (one owner) or Partnership (2–20 owners) for low setup costs and simplicity, though both carry unlimited personal liability. For those seeking limited liability and easier access to bank loans, incorporating a Sdn. Bhd. is the preferred route. Under the Companies Act 2016, this involves a flat RM1,000 fee and ongoing compliance requirements like audits and a company secretary.

To register, use the Ezbiz online portal to submit Form A for businesses or MyCoID for companies. Fees range from RM30 for a personal name to RM60 for a trade name. SSM mandates registration before signing contracts; failure to comply can lead to fines of up to RM50,000. Ensure you have your tenancy agreement and business plan ready, as these are frequently required by banks and local authorities during subsequent licensing phases.

2. Premise & Signboard Licences

Every café requires a Premise Licence and a Signboard Licence from the local council (PBT), such as DBKL or MBPJ. Requirements vary by municipality but generally include company registration, proof of tenancy (minimum 12 months remaining), and floor plans highlighting seating, escape routes, and grease trap locations. It is crucial to verify that your shoplot is zoned for F&B and that the landlord permits the necessary exhaust systems and signage before signing a lease.

Councils strictly regulate signboard size, placement, and the use of Bahasa Malaysia in accordance with national standards. These approvals are often combined into a single "composite license." If documents are complete, processing typically takes 2–4 weeks. Many owners engage consultants to navigate these local requirements. Additionally, while not a local council permit, operators targeting Muslim customers should plan their kitchen layout early to meet JAKIM's Halal standards for smoother future certification.

3. Mandatory Food Handling & Health Requirements

Before you serve a single plate or cup, every team member who handles food must complete a Ministry of Health (KKM)–approved food handler training course. The Food Hygiene Regulations 2009 require this training for all food handlers in Malaysia. Accredited providers usually run a short half‑day course covering personal hygiene, safe cooking temperatures, and cross‑contamination control. As of 2024, the Food Handling Certificate is treated as valid for life , meaning staff usually only need this course once.

Food handlers also need a typhoid vaccination. The Food Hygiene Regulations 2009 state food handlers must receive vaccination from a registered medical practitioner. While accounting.my and Dr.Prevents suggest the shot is valid for three years, groups like Immunise4Life note local councils often enforce a two-year booster interval; always follow the stricter local PBT requirement.

Treat certificates and vaccination cards like mission‑critical documents. Keep clear digital records of each staff member’s food handling certificate and typhoid injection date. Health inspectors often request these during routine checks. Many cafe owners store this data in their HR system or attach scans to their POS or staff scheduling tools so supervisors can pull them up on a tablet during inspections. KKM-regulated course fees are approximately RM50, while typhoid vaccinations at private clinics range from RM80–RM120.

4. Halal Certification (If Applicable)

If you brand your café as "Halal," you must obtain certification from JAKIM or a state Islamic department (JAIN/MAIN). This requires strict adherence to MS1500 standards, including sourcing animal-based ingredients and syrups from JAKIM-recognised suppliers and implementing kitchen segregation to prevent cross-contamination. Most advisors suggest operating for at least three months prior to applying to ensure you have the required traceability records and supply chain history ready for audit.

The process involves an on-site inspection of storage, layout, and staff practices. While the official processing fees are low (typically RM20 for the application and RM100 annually for restaurants), total implementation costs can reach several thousand ringgit due to training and documentation. Once auditors are satisfied, JAKIM aims to issue the certificate within 30 days. Leveraging a POS with detailed inventory tracking is highly recommended to manage the rigorous three-month record-keeping requirement.

5. Alcohol & Entertainment Licences

If you plan to serve beer, wine or spirits, you must obtain an Alcohol (liquor) Licence from the Royal Malaysian Customs Department and get supporting approvals from your local authority (PBT). In practice you typically apply to your local council’s licensing unit while submitting SSM registration and tenancy proof to Customs. Officials visit the cafe to check the layout and alcohol storage to ensure it matches security and zoning rules.

Before signing a long lease, ask your PBT whether they approve liquor licences for your location, as some areas have distance rules from schools or places of worship. For entertainment, if you play recorded music in public areas, you are a “music user” and must obtain a public performance licence from Malaysia’s collective management organisations (CMOs). The Music Authors’ Copyright Protection (MACP) handles copyright for songwriters, while Public Performance Malaysia (PPM) represents recording companies and performers.

Business owners usually deal with all three organisations when playing commercial music. Music licensing fees depend on floor area , and PPM's standard tariffs can be significant for larger venues. Contact MACP and PPM with your floor plan to confirm the annual fee before finalising your budget.

6. Fire & Safety Compliance (BOMBA)

The Fire and Rescue Department (BOMBA) enforces the Fire Services Act 1988 , which sets fire safety standards for commercial premises. Many "designated premises" must obtain a Fire Certificate (FC) from BOMBA and renew it annually. BOMBA plans full enforcement on premises requiring an FC starting in Q1 2026.

Inspectors will check for certified fire extinguishing equipment , clear emergency exits, and functional emergency lighting. It is vital to align your fit-out with fire safety conditions before applying for or renewing the certificate. Larger premises should maintain a fire safety logbook to document extinguisher checks and staff fire drills. Aligning your design with BOMBA expectations from day one reduces delays and ensures the safety of your guests and staff.

Simplify Your Cafe’s Compliance in Malaysia

Opening a cafe in Malaysia involves navigating complex legal requirements, from SSM registration to health and fire safety. While licensing requires manual applications, a robust POS system like Eats365 can help you stay organized for your audits. By centralizing sales and inventory data, our cloud POS makes it easier to track purchase histories for Halal traceability and export reports during government inspections. Malaysian F&B entrepreneurs can use these digital tools to spend less time on paperwork and more time perfecting their coffee.

General FAQs

Q: What are the essential restaurant licenses every food business owner must obtain in Malaysia for 2026?

Essential licences and approvals are: SSM business registration (sole proprietorship/partnership or Sdn Bhd), local council (PBT) premise and signboard licence (DBKL in KL), and KKM‑approved food handler training (plus typhoid vaccination where required by local PBT). If your premises are designated, a BOMBA Fire Certificate is also essential. Other licences (Halal, liquor, music, WRT for foreign owners) apply only if they match your concept.

Q: What are the specific food safety and hygiene license requirements for restaurants in Malaysia?

All food handlers must complete a KKM‑approved Food Handler training course (Food Hygiene Regulations 2009) — the certificate is treated as valid for life (as of 2024). Food handlers usually also require typhoid vaccination from a registered practitioner (local councils set exact booster intervals, often 2–3 years). KKM fees are around RM50 per participant; typhoid jabs typically cost RM80–RM120. Keep digital copies of certificates and vaccination dates for inspections and renewals.

Q: Do foreign-owned restaurants in Malaysia need additional business licenses compared to local establishments?

Yes. Foreign‑owned retail/F&B businesses must incorporate as a Malaysian Sdn Bhd and apply to KPDN for a Wholesale Retail Trade (WRT) licence. KPDN typically expects a minimum paid‑up capital of about RM1,000,000 for 100% foreign‑owned entities before approving WRT, which is an extra requirement beyond normal SSM registration.

Q: How do halal certification requirements impact restaurant licensing in Malaysia?

If you use 'Halal' in branding or target Muslim customers, you must obtain JAKIM or state Islamic department certification and follow MS1500. That requires Halal‑certified suppliers, segregation to avoid cross‑contamination, written SOPs, and traceability. Auditors expect at least three months of purchase records and an on‑site audit. Allow roughly 3–6 months for preparation and approval; official processing fees are modest (about RM20 processing and ~RM100 annual), but total project costs often reach the low thousands once you add preparation and consultancy.

Q: What is the estimated total cost and processing time for obtaining all restaurant licenses in Malaysia?

There’s no single total — costs and times vary by licence. Examples from the article: SSM fees (sole proprietorship RM30–60/yr; Sdn Bhd incorporation RM1,000), food handler course RM50 each, typhoid RM80–120 each, Halal processing ~RM20 and annual ~RM100 plus prep costs (project in low thousands), PBT premise/signboard typically 2–4 weeks if complete, and Halal usually 3–6 months end‑to‑end. Foreign WRT needs ~RM1,000,000 paid‑up capital. Music licences and liquor licences can add thousands annually depending on venue size and use.

Q: How long are restaurant licenses valid in Malaysia, and what is the renewal process?

Validity periods differ: SSM business registrations are annual for sole proprietorships/partnerships (fees RM30–60/yr); a Food Handling Certificate is treated as valid for life (as of 2024); Fire Certificates must be renewed annually under BOMBA; JAKIM Halal certification involves annual fees and ongoing compliance; PBT licence validity varies by council (check with the local PBT). Renewals usually require up‑to‑date documents, inspections where needed, and payment of renewal fees — confirm exact periods and steps with the issuing PBT or agency.