How to Start Hotel Business in Malaysia
In the year 2014- Malaysia is one of the world top 10th ranking as Tourist Destination! Malaysia also the top no 1 in Muslim tourism in the world ranking. Malaysia welcomes foreigners to participate further liberalized of 100% foreign ownership for hotel ranking of 4 stars and above in the hotel investment for its robust tourism industry. It is very lucrative to be in the hotel business in Malaysia!
At MalaysiaBizAdvisory, we assist foreigners to provide complete services on how to start Hotel Business in Malaysia and application of setting up the company to final obtain of various hotel tax incentives offered by Malaysia Government for 10 years tax break as pioneer status, reinvestment tax allowances for Sabah and Sarawak and incentives on hotel reinvestment.
How to Start Hotel Business in Malaysia- The licensing components
For foreigners who are interested to know how to start Hotel Business in Malaysia, we can guide you! As a hotelier to start operating the business activities in the hotel, there will be 4 major approvals needed. These major approvals can be applied concurrently. The Composite Licence to carry out the hotel business’ activities vary according to the hotel’s star rating.
Example, for a 5 star hotel, the Composite Licence comprised of:
c. Banquet/conference hall
d. Entertainment/performance activities
e. Restaurant/coffee house
f. Swimming pool for adult and children
g. Parking lot
i. Health club/gymnasium/sauna/outdoor and indoor facilities
j. Beauty/Hair salon
k. Souvenir shop and drug-store
l. All signboard advertisements
As for the legality aspects of starting up hotel business, on the assumption that the hotel building is completed and ready to be occupied, you are required to apply a minimum of 12 approvals to start the business depends on the rating of the hotel you intend to start. However, you may also apply for a maximum of 22 approvals, depending on the number of business activities you intend to provide in the hotel.
The 22 approvals can be categorized into 4 stages i.e.
To simplify your hotel investment and quick start-up, it is always easier to buy over or take over existing hotel available for sale where all licenses are intact and ready to operate. For example for investment size of USD2 million, the budget hotel rooms can range from 30 to 50 bedded depends on location. Alternatively, you can opt for operate a chain under licensing (similar to franchise). We provide exclusive service of: “Due Diligence and Research for Hotel buyout or licenses”. Contact us at +603-2181 2882 or email us your enquiry today!