CIDB License

Update Date:2015-11-9 15:52:23 Source:Tannet (Malaysia) Sdn Bhd Views:4898

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With effect from 20 July 1995, it is mandatory for any person or company whether local or foreign to register with Construction Industrial Development Board (CIDB) before engaging in any construction work in Malaysia. It is an offence for a non-registrant and punishable by a fine of not exceeding RM 50,000.

Therefore, if you wish to start any construction-related business, you have to apply for CIDB license.

CIDB Registration Term :

Registration of local contractors is time-based. Local contractors are entitled to be registered in particular categories such as Civil Engineering Construction, Building Construction, Mechanical Construction and Electrical Construction. They will be registered for a minimum period of 1 year but not exceeding 3 years to carry out construction works in Malaysia.

CIDB Restriction :

A contractor is not allowed to perform any construction works outside his registered category. He is not allowed to undertake any construction project which exceeds the value of the construction works specified in the registration grade.

CIDB Grades :

There are 7 specified registration grades for each category. The CIDB registration fee varies according to the registration grade. The 7 specified registration grades are as below:

- G1 : Tender not exceeding RM 200,000

- G2 : Tender not exceeding RM 500,000

- G3 : Tender not exceeding RM 1 Million

- G4 : Tender not exceeding RM 3 Million

- G5 : Tender not exceeding RM 5 Million

- G6 : Tender not exceeding RM 10 Million

- G7 : Tender amount - No Limit

Foreign Contractor CIDB Registration :

For foreign contractors, CIDB registration is on project-basis. The certificate registration of a foreign contractor allows the certificate holder to undertake only the project specified in the certificate. If the foreign contractor wishes to apply for an extension of the validity of the certificate, he has to do apply to CIDB within 14 days before the expiry of the certificate validity.

Levy on Contractors :

A CIDB registered contractor has to notify CIDB of any contract which he has carried out that has a contract sum of more than RM 500,000. The percentage of levy is calculated as 0.125% of the contract sum by way of Regulation 2 in accordance to Lembaga Pembangunan Industri Pembinaan Malaysia (Imposition of Levy) Order 2003 with effect from 21 May 2003.

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