A Complete Guide To USS License Applications In Malaysia
Unregulated Services Sector (USS) licenses are issued by the Malaysian Ministry of Domestic Trade and required for all foreign-owned businesses in Malaysia operating within service-based sectors.
This guide covers key aspects of USS licenses for foreign businesses, including:
- objectives
- types of businesses that need them
- key requirements
- required documents
- the application process, including time and cost estimates
- a warning that you might not need a USS license
Let’s begin.
USS license objectives
Understanding the purpose behind USS licenses can provide a more intuitive understanding of how to navigate the application process. In general, USS licenses are meant to carefully align foreign business participation in Malaysia with three goals.
Elevate Malaysian industry
The aim is to create a conducive environment that encourages healthy competition among industry players while preventing monopolistic market practices.
Encourage modernisation
The requirements underpinning WRT licenses encourage the thoughtful use of technology for streamlined workflows, logistics and resource usage.
Balance foreign and local participation
The purpose of regulating foreign participation is, like it or not, to protect local businesses and entrepreneurs from being outcompeted.
Applicants therefore stand a better chance of obtaining a USS license if the foreign-owned business can add value to Malaysian industry without threatening local enterprises.
Businesses that need a USS license
Those interested can check out this official list of USS services which goes into full detail but broadly speaking any foreign-owned business involved in providing services to Malaysian public or business consumers will need a USS license, and if your business falls under any of the following categories:
- transport & logistics
- real estate & property management
- equipment leasing & maintenance
- professional business & research
- community & personal care
Then you need a USS license!
General requirements
No matter the industry, business applying for a USS license must:
- be incorporated in compliance with the Company Act 2016
- have a minimum paid-up capital of RM1 million, and
- have already received other operating licenses, namely PBT premise and signboard approval
Required documents
You can download an official checklist of the required documents on KPDN’s website, but for your convenience here’s what you’ll need to prepare.
Mandatory documents:
- Completed WRT 1 form.
- Company profile / Business Plan
- Certified copies of the Registration of Company and Form 49
- Stamped copies of Form 32A, if there have been changes in shareholding
- Inland Revenue Board:
- Copy of IRB’s tax registration confirmation letter for newly operating companies
- Copy of IRB’s confirmation of submission e-C for companies already in operation
- Employee Provident Fund:
- Proof of registration for new companies.
- Latest 3 months EPF statement for existing companies.
Additional documents:
- Copy of valid license by the Local Authorities
- Copy of tenancy / sale & purchase agreement for the premises
- Singed copies of the latest 3 years audited financial statements
- (If applicable) Copies of licenses from relevant authorities
- Copies of documents for 3 transactions per month over the last 3 months
- Information on foreign workers / expatriates
- Colour photographs of the premises / warehouse / office
- Product catalog / sample
If you would like help with any item on the list, get in touch and we’d be happy to help!
Application process
Once you have all the necessary documents, the application process is straightforward enough.
- go to BLESS, Malaysia’s online business license application portal
- sign up for an account
- select the license you’d like to apply for
- fill up and submit your license application
- pay the required fee
The application takes two to three months to process, and upon approval, KPDN grants a license valid for one to three years after accessing the applicant’s:
- financial performance
- tax payment to government, and
- technology transfer / sharing
As KPDN doesn’t have an application fee for USS licenses, in theory businesses are free to apply themselves, but as this is almost exclusively applied for by foreign businesses, third-party service providers are common.
WRT licenses
Just a heads up that you may need a Wholesale, Retail, and Trade (WRT) license instead.
Both USS and WRT licenses apply to foreign-owned companies operating in Malaysia but:
- USS licenses are for service-based companies, while
- WRT licenses are for trading businesses
If a business does both trading and service-based activities, it still only needs one license which will be based on where most of its revenue comes from.
Application processes and approval time are the same for both, but if you apply for the wrong one, it will most likely get rejected and you’ll have to go through the whole application process again.
As we’ve been approached in the past by businesses who made this mistake, we just wanted to bring it to your attention 😊
Let MISHU handle your USS license application
If you are a foreign business planning to set up a service-based venture in Malaysia, consider our professional USS license application services for a one-stop solution for company incorporation, visa applications, and full licensing support.
