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Running a factory in Klang Valley involves more than just setting up your premises. You’ll also need approval from the local authority, known as the town council (Pihak Berkuasa Tempatan or PBT). The factory license issued by the PBT ensures that your operations are legal and meet regulatory standards.

Each council, such as DBKL, MBSA, MBPJ, MPSJ or MPKj has its own specific rules but most share similar core requirements.

This license is mandatory for all factories to operate legally. It helps ensure compliance with health, safety and zoning regulations. Below is a guide to help you understand the key requirements and application process.


➊ Why a Factory License Is Necessary

A factory license issued by the PBT:

  • Validates your business operations;
  • Confirms compliance with safety, environmental and zoning standards;
  • Helps avoid fines, closure or legal complications; and
  • Builds credibility with clients, suppliers and investors.

Without it your factory risks being shut down or penalized.

➋ Who Needs to Apply

Any company setting up a factory whether in manufacturing, processing or storage must apply for a license with the relevant local council. The exact requirements may differ depending on the district, but the principle is the same across Klang Valley.

➌ Key Requirements for Application

Before applying, make sure you have the following in order:

  • Business registration with the Companies Commission of Malaysia (SSM);
  • Premises documents such as land titles, tenancy agreements, or building approval plans;
  • Factory layout plan showing the setup of machinery and operations;
  • Fire safety and environmental compliance approvals (if applicable); and
  • Owner/director identification documents.


➍ The Application Process

  1. Prepare your documents based on the council’s checklist.
  2. Submit the application to the respective PBT office (either online or in person).
  3. Site inspection – Local authorities may visit your factory to verify compliance with regulations.
  4. Approval & license issuance – Once approved, you’ll receive your official factory license.


➎ Timeline & Costs

  • Processing time: 1–3 months (depending on readiness).
  • Fees: RM500 – RM5,000 per year, depending on size and business type. (subject to council regulations)
  • Renewal: Yearly, subject to fire and environmental compliance.

Processing time can range from several weeks to a few months, depending on the complexity of your application, your location and whether all documents are complete.

➏ Tips for a Smooth Application

  • Ensure your factory layout complies with fire and safety standards before inspection.
  • Double-check that your business activities align with the zoning category of the premises.
  • Keep documents updated and properly certified.
  • Consider professional assistance if you’re new to the licensing process.

📌 Applying for a factory license in Klang Valley is an essential step for any business involved in manufacturing or production. The process may seem technical but being well-prepared with the right documents and ensuring compliance with safety and zoning rules can help speed up approval.

Once secured, the license allows your business to operate legally, build credibility and focus on growth in Malaysia’s industrial hub.

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