Getting Started-Hypermarket Business in Malaysia

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Getting Started: Hypermarket Business in Malaysia

TABLE OF CONTENT Overview Stages of Approvals in Starting Hypermarket Business Stage 1 - Company Registration Approval of Company’s Name Certificate of Incorporation Approval for Establishment of Distributive Trade (Foreign Equity) Stage 2 Employer/Employee Registration 11 12 14 14 16 17 5 5 8 1 2

Employer Registration with EPF Member Registration with EPF Employer Registration with SOCSO Employee Registration with SOCSO Employer Registration with IRB Registration as Corporate Payer with IRB Stage 3 Pre-operational Approvals

Premise & Advertisement Licence for Hypermarket Registration Certificate for Electric Installation Retail Licence for Rice Wholesale/Retail Licence for Chicken

19 21 23 25


Getting Started: Hypermarket Business in Malaysia

Wholesale Licence for Sugar, Cooking Oil and Wheat Flour Stage 4 Additional Approvals


Import Licence for Fish Licence to Manufacture Bread Permission to Install Machinery Wholesale Licence for Drug & Cosmetic Wholesale/Retail Licence for Liquor Film Distribution Licence (Video Distribution) Halal Certification Cheap Sales Notice Approval for Extension of Operating Hours Temporary External Advertising Licence/Permit Entertainment Permit Intellectual Property Registration (Trade Mark) Apparatus Assignment Approval to Employ Expatriate Endorsement of Employment Pass/ Visit Pass (Temporary Work)

29 31 33 35 37 39 41 43 45 47 49 51 53 55 55


Getting Started: Hypermarket Business in Malaysia

Distributive trade has been identified as one of the key industries in the services sector under the 9th Malaysian Plan. It is due to the fact that distributive trade as a whole grew from RM59.6 billion in the year 2000 to RM205.6 billion in 2005. The growth in distributive trade is visible with the emergence of modern and large departmental stores, shopping complexes and warehouse stores not only in the city centres but also in the suburbs, particularly near urban residential areas. The Government policy of modernising distributive trade has resulted in an increase in the number of supermarkets and department stores as well as the emergence of large area retail outlets called hypermarket. Hypermarkets are stores larger than 8,000 square meters (86,000 square feet) that sell a wide range of household grocery products ranging from frozen goods and fresh products to textiles, garments and shoes, as well as electrical goods such as home kitchen items and audio-visual appliances. Hypermarket is regarded as a convenient one-stop shopping centre that caters to a mix of consumers from housewives to students and working professionals. Due to the wide range of products offered, the hypermarket operator is required to obtain approvals from various Government agencies to sell certain products or conduct certain activities in his business premise. Information of those required approvals are compiled in this guidebook and it is hoped that it would provides a comprehensive reference to hypermarket operators in running their businesses.


Getting Started: Hypermarket Business in Malaysia

Stages of Approvals in Starting Hypermarket Business
On the assumption that the hypermarket building is completed and ready to be occupied, the operator is required to apply a minimum of 14 approvals* to start the business. However, he may also apply for a maximum of 29 approvals, depending on products sold as well as activities that are carried out in the premise. The 29 approvals can be categorised into 4 stages as follows: STAGE Stage 1: Company Registration Stage 2: Employer/Employee Registration Stage 3: Pre-Operational Approvals Stage 4: Additional Approvals TOTAL 15 29 5 6 3 NO. OF APPROVALS

Note: * Approvals include licences, permits, registrations and authorisation letters.

The minimum 14 approvals involved approvals needed in Stage 1 to Stage 3. Stage 4 comprised of 15 additional approvals that may be...
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