Hassle of getting licences driving some entrepreneurs to operate businesses illegally

PETALING JAYA: Entrepreneurs are calling for authorities to cut the red tape in setting up a business, as the current steps and procedures required are tremendously troublesome.

The changes – for all business sectors – are needed not only for the benefit of operators but also for the authorities and the government, as they would prevent frustrated business operators from operating illegally.

Those who do follow the myriad of laws, rules and regulations claim getting a licence to operate a legal entity have driven some of their fellow entrepreneurs to break the law, despite being fully aware that the consequences of such acts are dire, such as facing steep fines and even imprisonment.

In sharing his experience, former bar owner R. Balachandran said there are so many authorities – such as police, customs, local council, Tenaga Nasional Bhd and the fire department – whose approval must be obtained before the local authorities grant permission for a business to operate.

He said getting all that done was still not the end of it as one has to jump through the same hoops each year when renewing the licence.

“I operated a restaurant and pub and had to face constant checks by the authorities, although I had all the required licences. I felt the process of getting a business licence was not transparent enough.

“The system punishes people who are trying to operate an honest business. Illegal businesses were operating in the same area but were spared all the checks because as a licensed business, I was on the list for the authorities to check, while they ignored the illegal businesses. It’s better and far cheaper to operate an illegal pub than a licensed one.”

Balachandran told theSun he used to get the runaround yearly when he tried renewing his licence, although he followed all the rules and paid his taxes on time.

He said the authorities need to make it easier and quicker for a person who wants to run a business to get a licence.

Restaurateur Datuk K. Kanan said there are a lot of criteria to fulfil before a business licence is issued.

He said anyone interested in opening a business must go through the rules and regulations, which are readily available online.

He added that Shah Alam, for example, has very strict rules when it comes to selling alcoholic drinks.

“When I opened my restaurant after having fulfilled all the rules and regulations, I was given a six-month temporary licence. Only by keeping within the rules was I allowed to apply for a permanent licence.

“I had another restaurant and bar in a commercial area in Kuala Lumpur. But because the area had a commercial (status) I did not face that many obstacles. I would advise people to study what the (status) of an area or building is before opening their business there.”

He said even the wording for a restaurant’s signage need clearance from Dewan Bahasa dan Pustaka because without it, approval would not be granted.

When opening home-based food businesses, the rules and regulations set out by the Food Safety and Quality Division of the Health Ministry (MOH) must be adhered to.

MOH recommends that home-based food businesses have a different area separated from the household kitchen.

Due to the growing number of home-based food businesses, MOH has released a guide for all home-based food operators to practise safe food handling.

The MOH certified Guide for Home-based Food Business states that the basic requirements for at-home food handlers include registration with the Companies Commission of Malaysia and the Food Safety Information of Malaysia.

Getting an anti-typhoid vaccine, attending the Food Handling Course at any MOH approved Food Handling Training School, practising food safety and health advice from MOH and conducting regular self-evaluation are among the requirements.

Even a person offering food or cakes for sale in markets or stalls is required to be registered under Rule 3 (1) of the Food Hygiene Regulations 2009.

Those running a home-based catering business are required to register their premises with MOH.

When providing home-based, ready-to-eat food, a label with the name of the food, name and address of the cook, telephone number, ingredients, date and time the food was cooked and its net weight are required.

According to the Registration of Business Act 1956, traders who do not register their businesses may be punished with imprisonment or a fine, or both. Home-based food business operators are required to register their businesses and comply with all guidelines.

In general, those who fail to comply with the Food Hygiene Regulations 2009 may be liable to a fine not exceeding RM10,000 or imprisonment for a term not exceeding two years.

If the food handler does not attend the Food Handling Training Course, a fine not exceeding RM10,000 or imprisonment not exceeding two years may be imposed.

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