FRANCHISE REGISTRATION IN MALAYSIA

FRANCHISE REGISTRATION IN MALAYSIA

No registration is required for Licensing. However, under Malaysian Franchise Act 1998, there is a legal requirement that all franchises operating in Malaysia (either local or foreign), have to be registered with the Franchise Registry. Incompliance is an offence.

This include those foreign franchisor who wishes to sell their franchise in to Malaysia or to a Malaysian Citizen must first get approval from the Ministry of Franchise . master franchisee of foreign franchisors must register the franchise before they can operate the franchise businee or make an offer to sell the franchse to any party. Incompliance of this requirement is tantamount to an offence and can be punished with a fine from MYR150,000 to RM250,000  and/or imprisonment for a term  between 1 to 3 years depending whether it is corporate body or non-body corporates. Therefore, it is very important to those foreign franchisor to take  serious notice of  this legal requirement before offering their franchise to Malaysian market.

 

REQUIREMENT FOR FRANCHISE REGISTRATION IN MALAYSIA

To register a franchise with the Franchise Registry., a company should have at least meeting the below requirement and having ready with said documents:-

  1. run the business for more than 3 years;
  2. Register as SDN.BHD company at Suruhanjaya Syarikat Malaysia (SSM)
  3. Forms 24 and 49 (Company’s return as to the Board of Directors and the Shareholders;
  4. Having a completed operation manual and training manual;
  5. Having a proposed Franchise Agreement;
  6. A Disclosure Document ;
  7. Company’s organizational chart, together with the names and position of key personnel;
  8. Company’s business brochures