How to Start a Jewellery Business in Malaysia: Licences, Registration, and Compliance
Starting a jewellery business in Malaysia means navigating SSM registration, local council permits, precious metals regulations, and — if you're foreign-owned — the RM1 million WRT licence requirement. This guide walks you through every step, from company formation to opening day compliance.
Business Structure: What Type of Company?
Before anything else, decide on your business structure. For jewellery retail in Malaysia, the most common options are:
| Structure | Best For | Foreign Ownership |
|---|---|---|
| Sole Proprietorship | Malaysian citizens starting small | Not permitted |
| Partnership (LLP) | Malaysian partners pooling resources | Limited |
| Sdn Bhd (Private Limited) | Serious retail operations, foreign investors | Permitted with conditions |
For most jewellery businesses — especially those with growth ambitions or foreign shareholders — Sdn Bhd is the standard choice.
Step 1: SSM Company Registration
All businesses in Malaysia must register with the Companies Commission of Malaysia (SSM).
For Sdn Bhd Companies
- Name Search: Check availability through SSM's MyCoID portal
- Reserve Company Name: RM50 fee, valid for 30 days
- Prepare Documents:
- Memorandum and Articles of Association
- Director and shareholder particulars
- Registered office address
- Company secretary appointment (mandatory)
- Submit via MyCoID: Online incorporation
- Pay Registration Fee: Based on authorised capital
SSM Registration Fees (Sdn Bhd)
| Authorised Capital | Registration Fee |
|---|---|
| Up to RM400,000 | RM1,000 |
| RM400,001 – RM500,000 | RM3,000 |
| RM500,001 – RM1,000,000 | RM5,000 |
| Above RM1,000,000 | RM5,000 + additional fees |
Processing Time
SSM processes most Sdn Bhd registrations within 1-3 working days if documents are complete. As of 2025, all directors must sign using valid digital signatures.
2025 Updates
- AI-powered workflows speed up application reviews
- Stricter KYC checks mandatory for directors and shareholders
- Digital signatures required for all incorporation documents
Step 2: WRT Licence (Foreign-Owned Companies)
If your company has more than 50% foreign ownership, you must obtain a Wholesale, Retail and Trade (WRT) Licence from the Ministry of Domestic Trade and Consumer Affairs (KPDN).
Key Requirements
| Requirement | Details |
|---|---|
| Minimum paid-up capital | RM1,000,000 |
| Business premises | Must have physical location |
| Business plan | Comprehensive submission to KPDN |
| Premise inspection | KPDN officers will visit |
Application Process
- Complete SSM registration first
- Apply through BLESS (Business Licensing Electronic Support System)
- Submit comprehensive business plan to KPDN
- Undergo premise inspection
- Receive WRT licence (valid for 2 years)
Processing Time and Fees
- Timeline: 2-3 months on average
- Licence fee: No fee from KPDN (administrative fees may apply)
Joint Venture Option
If you partner with a Malaysian citizen (50-50 ownership), the RM1 million paid-up capital requirement drops significantly — a common strategy for foreign investors entering the market.
Step 3: Local Council Business Premise Licence (PBT)
Every retail business needs a Business Premise Licence from the local council (Pihak Berkuasa Tempatan / PBT) where you operate.
Which Council?
Your local council depends on your business location:
- Kuala Lumpur: DBKL (Dewan Bandaraya Kuala Lumpur)
- Petaling Jaya: MBPJ (Majlis Bandaraya Petaling Jaya)
- Johor Bahru: MBJB (Majlis Bandaraya Johor Bahru)
- Penang: MBPP (Majlis Bandaraya Pulau Pinang)
Documents Required
- SSM registration certificate
- Director IC/passport copies
- Tenancy agreement or Sale & Purchase Agreement
- Floor plan of premises
- Premises photographs
- Signboard visual design
- Fire safety certificate (for larger premises)
Additional Licences from PBT
| Licence Type | Purpose |
|---|---|
| Business Licence | Operating from shop lot or building |
| Signboard Licence | Any external business signage |
| Renovation Permit | Any structural modifications |
Processing Time
Typically 7 days to 2 months depending on licence type and council workload.
Fees
Fees vary by council, business type, and floor area. Expect annual renewal fees — budget for this recurring cost.
Step 4: Gold Hallmarking Compliance
If you're selling gold jewellery, you must comply with Malaysian precious metals regulations.
Trade Descriptions Act 2011
The Trade Descriptions (Articles made of Precious Metals) Regulations 1994 governs gold jewellery sales. Key requirements:
Mandatory Marking Requirements
- All gold jewellery must be marked with fineness in Arabic numerals
- 916 gold (22-karat, 91.6% pure) must be marked as "916" only
- Markings must be at least 0.6mm in height and breadth
- Markings must be clear and indelible
Exemptions
Items under 1.5 grams that are too small for practical marking are exempt from marking requirements.
Testing Standards
Gold purity must comply with Malaysian Standard MS 1365: Part 1:1994, developed by SIRIM. Testing methods include:
- Fire assay (cupellation): Most accurate, destructive test
- XRF (X-ray fluorescence): Non-destructive, quick results
FEDMAS Testing Laboratories
The Federation of Goldsmiths and Jewellers Associations of Malaysia (FEDMAS) operates accredited laboratories in:
- Penang
- Kuala Lumpur
- Johor Bahru
These labs are accredited under MS ISO/IEC 17025:2005 and employ IKM (Malaysia Institute of Chemistry) registered chemists.
Penalties for Non-Compliance
| Offender Type | First Offence | Repeat Offence |
|---|---|---|
| Corporate body | Up to RM250,000 | Up to RM500,000 |
| Individual | Up to RM100,000 or 3 years jail | Higher penalties |
SIRIM Weighing Scale Requirements
Your weighing scales must have SIRIM approval and undergo periodic calibration testing. KPDN inspectors verify compliance during inspections.
Step 5: AML/CFT Compliance
Jewellery dealers are classified as Designated Non-Financial Businesses and Professions (DNFBPs) under Malaysia's Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (AMLA).
Your Obligations
- Customer Due Diligence (CDD): Verify customer identity for significant transactions
- Record Keeping: Maintain transaction records for at least 6 years
- Suspicious Transaction Reporting: Report to Bank Negara Malaysia
- Compliance Officer: Appoint and notify BNM
- Sanction Screening: Screen customers against sanction lists
Annual Reporting
DNFBPs must submit the Data and Compliance Report (DCR) annually. Failure to submit on time can result in enforcement action.
Penalties
- Fines up to RM3 million
- Imprisonment up to 5 years
- Both fine and imprisonment possible
2025 AMLA Amendments
The AMLA (Amendment) Act 2025 expands personal liability — directors, officers, and employees can now be held personally accountable for compliance failures.
Step 6: Insurance Coverage
While not legally mandated in the same way as Singapore, insurance is essential for any jewellery business:
Types of Coverage to Consider
- Stock insurance: Covers inventory against theft, fire, and damage
- Jewellers block insurance: Comprehensive coverage including transit and customer goods
- Public liability: Customer injuries on premises
- Business interruption: Lost income during disruptions
Given the high value of jewellery inventory, adequate insurance isn't optional — it's business survival. A single robbery or fire could wipe out your entire stock without proper coverage.
Additional Considerations
Halal Certification
While gold jewellery itself doesn't require Halal certification, if you sell items with leather, animal-derived materials, or certain gemstones, consider Halal certification for the Muslim market. Contact JAKIM (Department of Islamic Development Malaysia) for guidance.
Import Licences
If importing jewellery or raw materials:
- Register with Royal Malaysian Customs
- Comply with import duty requirements
- Ensure proper documentation for precious metals
Employee Requirements
For foreign employees, you'll need:
- WRT licence approval (if foreign-owned company)
- Employment Pass applications through Immigration
- Compliance with minimum local hiring ratios
Startup Timeline: Realistic Expectations
| Step | Timeline |
|---|---|
| SSM company registration | 1-3 days |
| WRT licence (if required) | 2-3 months |
| Secure premises and negotiate lease | 1-2 months |
| PBT business premise licence | 1-8 weeks |
| Renovation and fit-out | 1-3 months |
| Stock procurement and setup | 2-4 weeks |
| Total (Local-owned) | 3-5 months |
| Total (Foreign-owned) | 5-8 months |
Estimated Startup Costs
| Item | Local-Owned | Foreign-Owned |
|---|---|---|
| Paid-up capital (minimum) | RM1 (legal min) | RM1,000,000 |
| SSM registration | RM1,000-5,000 | RM1,000-5,000 |
| Company secretary (annual) | RM1,500-3,000 | RM1,500-3,000 |
| PBT licences | RM500-2,000 | RM500-2,000 |
| Premises deposit & rent (3 months) | RM15,000-50,000 | RM15,000-50,000 |
| Renovation & security | RM30,000-100,000 | RM30,000-100,000 |
| Initial stock | RM100,000+ | RM100,000+ |
| Insurance (annual) | RM5,000-20,000 | RM5,000-20,000 |
| SIRIM-approved scales | RM2,000-5,000 | RM2,000-5,000 |
Ongoing Compliance Checklist
- Annual: SSM annual return, PBT licence renewal, insurance renewal, DCR submission
- Periodic: Scale calibration, AML/CFT training, sanction list updates
- Daily: Proper hallmarking compliance, CDD for significant transactions, record keeping
Common Mistakes to Avoid
- Skipping the WRT licence — Foreign-owned companies cannot operate legally without it
- Ignoring hallmarking requirements — Fines up to RM500,000 for repeat offenders
- Underestimating AML/CFT obligations — Personal liability now extends to directors
- Using non-SIRIM-approved scales — Immediate compliance issues during inspections
- Operating without insurance — One incident can destroy the entire business
Key Takeaways
- SSM registration is the foundation — complete this first
- Foreign-owned companies need RM1 million paid-up capital for WRT licence
- PBT business licence required from your local council
- Gold hallmarking is mandatory — 916 marking requirements under Trade Descriptions Act
- AML/CFT compliance applies to all jewellery dealers as DNFBPs
- Insurance protects your most valuable asset — your inventory
- Budget 3-8 months from decision to opening, depending on ownership structure
Starting a jewellery business in Malaysia is achievable with proper planning. The regulatory framework exists to protect consumers and maintain industry standards. Compliance isn't just about avoiding penalties — it's about building a reputable business in a market where trust is everything.
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