Eight steps, in the order you will actually take them.
This page is the whole path on one screen. Every step below tells you the same four things, what happens, who you deal with, how long it takes, and what is different about doing it in Sabah. Five of them open a detailed guide; the other three are handled by your Invest Sabah officer directly.
THE SHAPE OF IT
One conversation to test whether Sabah fits the project, before you spend anything on advisors.
Company, licences, people and incentives. Four workstreams that run largely in parallel.
Local partners, aftercare through construction and commissioning, then the second phase.
THE EIGHT STEPS
Read in order the first time. After that, jump to the one you are on.
A scoping conversation that maps your requirements against real sites, power, water and feedstock.
One state agency holds the whole file. You are not passed between departments to assemble your own answer.
Incorporate under the Companies Act 2016, then complete the registrations every entity needs before it can trade.
Federal incorporation is only half of it. Trading here also needs a business licence from the local authority in the district you operate in.
The manufacturing licence, sector permits and land approvals that apply to what you actually intend to build.
Land and forestry are state powers, not federal ones. The decisions that matter most to a project are made in Kota Kinabalu.
Employment passes for your expatriate team, plus dependants and long-term stays.
Sabah controls its own immigration. A federal pass alone does not admit your staff, they need a Sabah entry permit endorsed on it.
Pioneer Status, Investment Tax Allowance and state-level packages, structured before capital is committed.
Sabah is a promoted area, so the federal incentive tiers run more generously here than in the peninsula, and the state can add to them.
Sabah suppliers and contractors, plus the engineers, architects and lawyers you must appoint to build.
The professions keep Sabah rolls. A peninsular firm cannot sign your submissions here without local counsel.
Facilitation through construction, commissioning and the first years of operation.
The officer who scoped your project stays on the file after you open. There is no handover to a different department.
Second-phase land, additional incentives and reinvestment support as the operation grows.
Adjacent land is often still available on the same estate, so phase two rarely means starting the site search again.
Indicative timings for a typical manufacturing project, drawn from recent files. Your sector, site and shareholding change them, and Invest Sabah will give you a schedule specific to your project on request.
REGISTRATION TO OPENING
INTERACTIVEThen click any stage on the track to see who issues it, what to bring, how long it takes and what it costs.
GENERAL BUSINESS
Incorporate the company
Register a Sdn. Bhd. through MyCoID with at least one director ordinarily resident in Malaysia. Foreign shareholding is permitted at 100% in most non-strategic sectors.
- Three proposed company names
- IC or passport of every director and shareholder
- Registered office address in Malaysia
- Constitution, if you are not adopting the default
A branch or representative office follows a different route, talk to us before you file.
Register with tax and statutory bodies
Open the corporate tax file with LHDN and register as an employer with EPF and SOCSO before your first payroll run. SST registration follows only if you cross the turnover threshold.
- Section 17 notice of registration
- Company bank account details
- Director particulars
- Estimated headcount and payroll start date
Employer registration is due within 7 days of hiring your first employee.
Secure the premises
Sign and stamp a tenancy agreement for a unit whose approved use matches your trade. Land in Sabah is administered by the state, so title conditions matter more here than on the peninsula.
- Stamped tenancy agreement or title document
- Certificate of completion and compliance for the building
- Dimensioned floor plan
- Confirmation of approved land use
Check the land title category before signing, converting use is slower than finding another unit.
Obtain pre-licence clearances
The council will not issue a trade licence without supporting clearances. For an office or shop this is usually fire safety and a sanitation check.
- Fire safety inspection request to Bomba
- Health department premises inspection
- Signboard artwork and dimensions
- Waste disposal arrangement
Book inspections early, the queue, not the inspection, is what takes the time.
Apply for the trade licence
File the composite premises and signboard application with the local authority governing your address, over the counter or through the Sabah Digital Portal where supported.
- SSM incorporation certificate
- IC or passport copies of directors
- Proof of premises and floor plan
- Clearance letters from step four
Fees follow each council schedule and are set by trade type and floor area.
Open and stay compliant
Display the licence prominently at the premises, renew it annually, and file changes of activity, ownership or address with the council within the notice period.
- Licence displayed at the premises
- Annual renewal, typically 30 days before expiry
- Annual return and audited accounts to SSM
- Records of any change in trade or floor area
Trading on a lapsed licence is a compoundable offence, set the renewal reminder now.
END TO END Roughly 4–8 weeks from incorporation to opening, assuming the premises already carries a valid certificate of completion.
FOOD & BEVERAGE
Incorporate the company
Register the operating entity. If you plan multiple outlets, incorporate the holding structure now rather than restructuring after the first licence is issued.
- Three proposed company names
- Director and shareholder identity documents
- Registered office address
- Intended outlet structure
Licences are issued per premises, not per company.
Register with tax and statutory bodies
Open the tax file and register as an employer. Service tax registration applies to food and beverage operators once annual turnover exceeds the prescribed threshold.
- Section 17 notice of registration
- Bank account details
- Estimated annual turnover
- Payroll start date
Restaurants cross the service tax threshold faster than owners expect, model it early.
Secure premises and fit out the kitchen
The unit must be approved for food preparation. Grease traps, ventilation, wash areas and separate raw and cooked zones are inspected, not merely declared.
- Stamped tenancy agreement
- Kitchen layout with wet and dry zones
- Grease trap and exhaust specifications
- Pest control contract
Renovation without council approval is the single most common cause of a rejected F&B application.
Health, food handler and fire clearances
Every food handler must hold a typhoid vaccination record and a food handling course certificate. The premises is inspected for sanitation before the licence issues.
- Food handler training certificates for all staff
- Anti-typhoid vaccination records
- Premises sanitation inspection
- Bomba fire safety clearance
Keep the certificates on site, spot inspections after opening are routine.
F&B licence, signboard and add-ons
The composite application covers the premises, signboard and any outdoor seating. Liquor licensing and entertainment outlets are assessed separately.
- All clearances from step four
- Menu and operating hours
- Signboard artwork and dimensions
- Outdoor seating plan, if applicable
Liquor and late-night entertainment carry their own approvals and conditions.
Open and stay compliant
Display the licence and the grading certificate, renew annually, and maintain the sanitation standard the licence was granted on. Halal certification is optional but commercially valuable.
- Licence and grading certificate on display
- Annual renewal
- Ongoing pest control and cleaning records
- JAKIM halal certification, if pursued
Council grading is re-assessed on inspection and is visible to your customers.
END TO END Typically 6–10 weeks, driven by kitchen fit-out and health clearance rather than paperwork.
MANUFACTURING
Incorporate the company
Register the Sdn. Bhd. with at least one locally resident director. The name should carry “Manufacturing” or an equivalent term describing the activity.
- Three proposed company names
- Director and shareholder identity documents
- Registered office address
- Paid-up capital plan
Paid-up capital affects both the MIDA assessment and any future Employment Pass application.
Secure and clear the site
Take up land or a ready-built factory in a designated industrial area. The lot must pass an initial site assessment by the Department of Environment; on already-zoned land this is largely a formality.
- Lease or sale and purchase agreement
- Land title showing industrial category
- Initial DOE site assessment
- Site and building plans
Sabah controls its own land matters, allow time for state-level conversion if the title is not already industrial.
Building, fire and safety approvals
Building plan approval, fire certification and machinery registration with DOSH run in parallel. Heavy or emitting processes may trigger a written DOE approval or an EIA.
- Approved building plans
- Bomba fire certificate
- DOSH machinery and pressure vessel registration
- DOE written approval or EIA, where required
Start the DOE assessment before you order plant, some processes carry siting conditions.
Council composite licence
Premises and signboard in one application, supported by the clearance letters from Fire & Rescue, the Department of Environment and DOSH.
- SSM certificate and company profile
- Land title or lease
- Factory layout with floor area
- Clearance letters from step three
Floor area sets the fee band; declare it accurately the first time.
MIDA manufacturing licence or exemption
A full manufacturing licence is required at shareholders funds of RM2.5 million or more, or 75 or more full-time employees. Smaller operations apply for an exemption letter instead.
- Completed ICA form via InvestMalaysia portal
- Project paper: capacity, capital, employment
- Audited accounts or opening balance sheet
- Proof of at least 80% Malaysian full-time staff
File incentives, Pioneer Status or Investment Tax Allowance, alongside this, not after.
Commission and operate
Commission the plant, register for a Licensed Manufacturing Warehouse if you import inputs for export, and keep council, DOE and DOSH conditions current.
- LMW approval for duty-free imported inputs
- Certificate of Origin for preferential export tariffs
- Annual council licence renewal
- DOE monitoring and reporting compliance
See the incentives page for the schemes available here.
END TO END Roughly three months from incorporation to first production run; add 4–8 weeks if you are bringing in foreign management on an Employment Pass.
TOURISM & HOSPITALITY
Incorporate the company
Register the Sdn. Bhd. MOTAC sets minimum paid-up capital by licence class, inbound and outbound tour operators are treated differently.
- Three proposed company names
- Director and shareholder identity documents
- Paid-up capital meeting the MOTAC class threshold
- Registered office address
Foreign equity limits apply to certain travel agency categories.
Secure a compliant premises
MOTAC inspects the office or property itself. Travel agencies need a ground-floor or clearly signed office; accommodation is assessed room by room against the star or class criteria.
- Stamped tenancy agreement
- Floor plan and photographs of the premises
- Signboard artwork
- Room inventory, for accommodation
Home-based travel agencies are not licensable.
Fire, health and safety clearances
Accommodation and venues need fire certification and, where food is served, health clearance. Adventure and water-based operators face additional safety requirements.
- Bomba fire safety certificate
- Health clearance where food is served
- Public liability insurance
- Safety equipment records for adventure operators
Insurance certificates are checked at licensing, not only after an incident.
Council trade licence
The local authority licenses the premises and signboard as it would any other trade. This runs in parallel with the MOTAC application.
- SSM certificate
- Proof of premises and floor plan
- Clearance letters
- Signboard details
Do not wait for MOTAC before filing here, the two are independent.
MOTAC licence and STB registration
MOTAC licenses the tourism activity nationally; operating in Sabah additionally means registering with the Sabah Tourism Board and, for guides, licensing through the state.
- MOTAC application with company and premises documents
- Bank guarantee, where the licence class requires it
- Sabah Tourism Board registration
- Licensed tourist guide records, if applicable
Sabah nature and island operations may also need Sabah Parks or Wildlife Department permits.
Open and stay compliant
Display both the MOTAC licence and the council licence, renew annually, and keep guide licensing, insurance and safety records current.
- MOTAC and council licences on display
- Annual renewals
- Current public liability insurance
- Guide and safety certification records
Sabah Tourism Board listing also drives referral traffic, keep the entry updated.
END TO END Typically 8–12 weeks, most of it in MOTAC assessment and premises inspection.
KEEP READING
Your Journey with Invest Sabah, from the first call to your first shipment.
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