Avoid the RM20,000 Trap: Common Licensing Mistakes and How to Prevent Them

A practical guide for Malaysian business owners to avoid costly fines, signboard errors, and license rejections. By Conzlab Berhad.
September 28, 2025 by
Avoid the RM20,000 Trap: Common Licensing Mistakes and How to Prevent Them
CONZLAB BERHAD 202301040401 (1534320P), Mira

What is Licensing Mistakes and How to Prevent Them?

Many business owners in Malaysia unintentionally fall into costly licensing mistakes when applying for business or signboard licenses with their local councils. Errors such as submitting incomplete documents, failing to follow specific signboard requirements like size, design, and language, or misunderstanding the type of license needed can lead to fines that reach up to RM20,000. On top of that, delays in approval can disrupt business operations, causing unnecessary stress and financial strain. These issues often happen because entrepreneurs are unaware of the strict regulations enforced by local authorities such as MBJB, MBIP, and MBPG.

To prevent such costly setbacks, it is crucial for businesses to carefully review council guidelines before starting the application process. Preparing accurate documents, ensuring compliance with design rules, and seeking professional assistance when needed can make a big difference. Many companies choose to work with licensing consultants to streamline communication with the council and avoid repeated rejections. By taking proactive measures, business owners can save time, money, and energy, ensuring their licenses are approved smoothly while keeping their operations fully legal.

Common Mistakes made by Business Owners.

Missing the DBP Language Approval

One of the most common mistakes business owners make is neglecting the requirement for Dewan Bahasa dan Pustaka (DBP) approval before putting up their signboards. Councils such as MBPG and MBJB enforce this rule strictly because Bahasa Malaysia must be the primary language on all business signage. Business owners who fail to comply with this requirement risk facing fines or enforcement actions during spot checks, which could be costly and disruptive to operations.

To avoid these issues, business owners should always ensure their draft signage is sent to DBP for approval before printing. The Malay wording should be grammatically correct, larger in size, and placed more prominently compared to other languages such as English or Mandarin. This step not only ensures compliance but also reflects professionalism and respect for national language policies.


Installing a Signboard Without a License

Another frequent problem is when business owners rush to install a signboard right after launching their business, assuming they can settle the licensing process later. This is a serious mistake because operating without a signboard license is illegal and can attract hefty compound fines. In some cases, local councils may even dismantle the signboard, leading to financial losses since the signage would need to be replaced after obtaining approval.

To prevent such setbacks, businesses must always secure their Signboard License from the local council before installation. Having the approval letter on file also provides peace of mind during inspections, ensuring that the business can continue operations without unnecessary interruptions. This extra step protects both the company’s image and its long-term operational stability.


Submitting Incomplete or Wrong Documents

Licensing delays often occur because applicants fail to submit complete or accurate documentation. Essential documents such as the SSM Certificate, tenancy agreement, premise layout plan, and BOMBA (Fire Safety) approval are often overlooked, and missing even one of these can result in rejection or significant delays. Such mistakes create unnecessary frustration and prolong the licensing process.

The best way to avoid this issue is to use a detailed checklist before submission. Engaging a consultant who understands each council’s specific requirements can also save time and ensure the application process runs smoothly. By preparing thoroughly, businesses can avoid costly delays and begin operations with all the necessary approvals in place.

Overlooking License Renewals

Many business owners assume that once they have obtained their license, their responsibility ends there. Unfortunately, licenses issued by local councils such as MBPG, MBJB, and MBIP must be renewed every year. Failure to renew on time can lead to warnings, fines, or even temporary suspension of business activities. Even if the license was paid for in the previous year, an expired license still renders the business non-compliant in the eyes of the authorities.

To manage this effectively, businesses should set reminders one to two months before the renewal deadline. Some consultants also provide follow-up services to monitor renewal dates and handle the process on behalf of the business owner. This not only prevents penalties but also ensures uninterrupted operations, protecting the business from unnecessary risks.

Conzlab Support Service
Conzlab 

Free Consultation Before Proceeding

Knowing well entrepreneurs' worries allows us to solve their problems in the fastest way possible. We provide a free consultation via phone call or online meeting to ensure entrepreneurs clearly understand the entire process, including the method, duration, and what we will handle for them.

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We understand that entrepreneurs often face unexpected issues with government regulations. To assist them, we offer a lifetime free WhatsApp support group where they can seek guidance and solutions anytime they encounter difficulties. Our goal is to provide continuous support so business owners can operate with confidence and ease.

Need Assistance with Business License Application? 

If you’re unsure about the process or need help with business license compliance, contact us today! Our experienced team will guide you through the steps to ensure your business is ready for licensing.

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Advisor


Penny Lim , Legal Consulting 

Ms. Penny is responsible for identifying possible legal issues and implementing solutions in the areas of government regulation, customer protection, and fair employment. Legal Counsel. Ms. Penny can advise on legal issues such as  government and business permits, review legal documents before signing them, and complete legal research as needed by the company


Avoid the RM20,000 Trap: Common Licensing Mistakes and How to Prevent Them
CONZLAB BERHAD 202301040401 (1534320P), Mira September 28, 2025
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