Alcohol licenses are issued by the Local Authority or city council responsible for the area where the business operates. Each authority determines its own fees, requirements, and application procedure.

The three licenses most relevant to SMEs are:

• Retail License: Selling alcohol for consumption away from the premises
• Wholesale License: Supplying alcohol to retailers or other wholesalers
• Public House License: Serving alcohol for consumption on the premises, such as at a restaurant or bar

Possibly. Alcohol licenses are activity-specific. For example, a bar that serves alcohol and also sells unopened bottles for takeaway may require both Public House and Retail licenses.

Most Local Authorities require applicants to:

• Operate through a registered business
• Use a suitable commercial premise
• Obtain approval from the relevant government agencies
• Ensure that all owners satisfy the eligibility requirements

The applicant must operate through a registered entity, which may include:

• Sole proprietorship
• Partnership
• Limited Liability Partnership (LLP)
• Sendirian Berhad (Sdn Bhd)

Yes. All owners or shareholders must generally be at least 21 years old. Muslims are not permitted to own businesses that sell or serve alcohol in Malaysia.

The requirements depend on the relevant Local Authority and Police Department. Generally, the premise should not be located:

• Near religious institutions
• Near schools or residential areas
• Near community centres
• Within known crime hotspots
• Inside buildings located below residential units

Wholesale alcohol businesses may also be required to operate within a designated industrial area.

Approval letters may be required from:

• Police Department
• Customs Department
• Health Department
• Local Council or PBT

Generally, yes. An inspection may be conducted to confirm that the premise satisfies the relevant location, safety, and operational requirements.

In most cases, the local Police Department will interview the applicant and perform a background check. The application may be rejected without police approval.

The cost varies according to the Local Authority and license type. As a general guideline, it may cost up to RM1,000 per license.

Alcohol licenses are normally valid for one year and must be renewed annually.

The process may take several months because multiple agencies are involved and some authorities review applications according to periodic approval cycles.

Yes, if the restaurant sells or serves alcohol:

• Serving alcohol on the premises: Public House License
• Selling takeaway alcohol: Retail License
• Performing both activities: Both licenses may be required

A license may not be required when the alcohol content is below 20%. However, requirements vary between Local Authorities, so confirmation should be obtained from the relevant council.

The usual process includes:

1. Prepare the required documents
2. Attend the relevant inspections and interviews
3. Advertise the proposed business in a newspaper
4. Submit the application to the Local Authority
5. Wait for the relevant approvals

The business location should be selected carefully because public objections may result in the application being rejected.