There are many steps to start a laundry business in Malaysia. Above everything else, you want to ensure that your business is compliant with local laws and regulations.
This is a general guide to 3 main legal requirements to operate a laundry business in this country:
- Business registration
Choose a business structure. You can register as a sole proprietor, partnership, or private limited company (Sdn. Bhd.). A private limited company is the most common structure for businesses in Malaysia. A sole proprietorship/partnership is registered under the Register of Business (ROB). A Sdn. Bhd. is registered under the Register of Companies (ROC). These registrations are done at the Companies Commission of Malaysia (SSM): This is a mandatory step to formalise your business.
- Relevant licenses & permits
Operating license — You need a Business Premise License from the local city council. For example, if you choose to open your laundry business in Kuala Lumpur, the local city council is Dewan Bandaraya Kuala Lumpur (DBKL). You also need a signage permit to place signs or advertising outside your premises.
Environmental health permit — If you are handling dry cleaning or industrial cleaning, you may need to get approvals from health departments.
Fire department clearance — Ensure the premises meet fire safety regulations. The Fire and Rescue Department of Malaysia (BOMBA) may need to inspect your premises.
- Employment and tax laws
Employment laws — You’ll need to hire staff if you are opening a full-service laundry business. This could include attendants, laundry assistants, or drivers for pick-up and delivery services. You will then need to register with the Employees Provident Fund (EPF) and Social Security Organisation (SOCSO).
Tax requirements — You must also ensure compliance with the Inland Revenue Board of Malaysia (LHDN) by registering for income tax and sales tax, if applicable.
It is best to secure all necessary licenses and permits before you start your laundry operation for peace-of-mind. Observing all safety measures and requirements is also essential for the safety of your staff and customers. PLE Laundry Equipment Sdn. Bhd. offers commercial laundry equipment that comply with international safety standards. Contact us at 016–262 2965 or 603–5633 6405 for more information today.
