Two licences to look out for in legal due diligence

Due Diligence

“We do not require any licence for our business.”

Sometimes I get the above reply in response to questions about licences held by companies which I am conducting legal due diligence on.

Usually these are companies carrying on business that are outside the sectors regulated by the Malaysian government.

Nonetheless, there are at least two licences to look out for in every legal due diligence, namely the business premise licence and signboard licence.

Under the Licensing of Trades, Business and Industries (Federal Territory of Kuala Lumpur) By-Laws 2016, a business premise licence is required for a person to use any premise for operating any business activity. There is similar requirement under the by-laws for other local authority.

Under the Uniform Building By-Laws 1984, the erection of hoardings or any framing for the display of advertisement or sign-boards is subject to an annual temporary permit issued by the local authority.

Look out for business premise licence and signboard licence in legal due diligence.


This post was first posted on Linkedin on 10 June 2022.

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