Business law module 8

Business Law
Module – 8
Incorporation and Corporate Licensing
Ref.
Munir Fuadi,2005, Pengantar Hukum Bisnis, PT. Citra Aditya Bakti, Bandung.
Burton, Simatupang Richard, 2007, Aspek Hukum Dalam Bisnis (Edisi Revisi), Jakarta: Rineka Cipta
K.Bertens, 2000, Pengantar Etika Bisnis, Kanisius, Yogyakarta.
Bambang B, Melia Famiola, 2007, Etika Bisnis dan Tanggung jawab sosial perusahaan di Indonesia, Rekayasa sains, Bandung.
Mariam Darus B,1994, Aneka Hukum Bisnis, Alumni Bandung.
Any relevant materials in conjunction with the cases and topics in discuss
I Nyoman Wisnu Wardhana
Yayasan Pendidikan Telkom
wisnuwin@yahoo.com

Company Setup
The Companies Commission of Malaysia - CCM, (Malay: Suruhanjaya Syarikat Malaysia (SSM)) is
a statutory body formed under an Act of Parliament that regulates corporate and business
affairs in Malaysia. The SSM was formed in 2002 under the Companies Commission of Malaysia
Act 2001, assuming the functions of the Registrar of Companies and Registry of Business..
The main purpose of SSM is to serve as an agency to incorporate companies and register
businesses as well as to provide company and business information to the public. The
commission launched SSM e-Info Services to allow information on companies and businesses
obtainable via its website.
________________
In Indonesia, the task is under the authority of Kementerian Hukum dan Hak Asasi Manusia
(Dept. Kum & HAM), based on UU No.40/2007.

Company Setup
As the leading authority for the improvement of corporate governance in Malaysia, the
commission also handles monitoring and enforcement activities to ensure compliance with
business registration and corporate legislation.
In 2003, the SSM began a review of the Companies Act 1965, with the aim of simplifying the
process of incorporation in Malaysia and reducing businesses' costs of compliance with
Malaysian corporate law.
________________
In Indonesia, the task is under the authority of Kementerian Hukum dan Hak Asasi Manusia
(Dept. Kum & HAM), based on UU No.40/2007.

Acts and Regulations
SSM is responsible for the administration and enforcement of the
following legislation:
▪ Companies Act 1965 (Act 125);
▪ Registration of Businesses Act 1956 (Act 197);
▪ Trust Companies Act 1949 (Act 100);
▪ Kootu Funds (Prohibition) Act 1971 (Act 28);
▪ Limited Liability Partnerships Act 2012 (Act 743);
▪ any subsidiary legislation made under the Acts specified above
such as:
- Companies Regulations 1966; and
- Registration of Businesses Rules 1957

SSM Services:
1. Corporate Information Supply
2. Corporate and Business Information Data (CBID)
3. Commemorative Certificate
4. Company Incorporation Tender Number
5. Publication

Starting a Sole Proprietorship or Partnership
Business includes every form of trade, commerce, craftsmanship, calling, profession or other
activity carried on for the purpose of gain, but does not include any office or employment or any
charitable undertaking or any occupation specified in the Schedule of the Registration of
Businesses Act 1956 (ROBA 1956) & ROBA Rules 1957
Two type of Business
▪ Sole proprietorship: Business wholly owned by a single individual using personal name as per
his/her identity card or trade name.
▪ Partnership: Business owned by two or more persons but not exceeding 20 persons. Identity
card name can’t be used as business name.

How to start a business?
1. Registration of a new business to be done within 30 days from the date of
commencement of the business.
2. Registration can be done at any SSM counter or through the e-Lodgment services
3. Complete the Business Registration Form (Form A) . Refer to Guidelines For New
Business Registration

Business may be registered using personal name
or using a trade name.
▪ Personal Name - Business name using personal name as stated in the identity
card is not required to apply for business name approval.
▪ Trade Name - Complete business name approval form (Form PNA.42). Refer to
Guidelines for Business Name Application.
4. Business names approval is according to Rules 15, Rules of Business Registration
1957.
5. Business Registration can be made for a period of one (1) year and not more than
five (5) years.

Starting a Limited Liability Partnership (LLP)
Limited Liability Partnership (LLP) is an alternative business vehicle regulated under the Limited
Liability Partnerships Act 2012 which combines the characteristics of a company and a conventional
partnership.
The LLP business structure is designed for all lawful business purposes with a view to make profit. LLP
may also be formed by professionals such as Lawyers, Chartered Accountants and Company
Secretaries for the purpose of carrying on their professional practice. The LLP concept will also
support start ups, small and medium enterprises (SMEs) to grow their businesses without having to
worry too much on their personal liabilities, personal assets and strict compliance requirements.

Salient features
Amongst others, LLP is featured with the protection of limited liability to its partners similar to the
limited liability enjoyed by shareholders of a company coupled with flexibility of internal business
regulation through partnership arrangement similar to a conventional partnership.
Any debts and obligations of the LLP will be borne by the assets of the LLP and not that of its partners’.
An LLP has the legal status of a body corporate which is capable of suing and being sued in its own
name, holding assets and doing such other acts and things in its name as bodies corporate may lawfully
do and suffer.
LLP also offers flexibility in terms of its formation, maintenance and termination while simultaneously
has the necessary dynamics and appeal to be able to compete domestically and internationally. With
the introduction of LLP, entrepreneurs will have more options to choose the most preferred form of
business vehicle.

Accessing the MyLLP Portal (For Registration)
Services available through the My-LLP Portal are as follows:
▪ Registration As User Of MYLLP Portal
▪ Application For Reservation Of Name
▪ Application For Registration Of New LLP
▪ Application For Registration Of LLP For Professional Practice
Starting a Company
APPLICATION OF NAME SEARCH - THE PROVISIONS OF THE LAW
The Companies Act 1965 (the Act) provides that before a company or its change of name is
registered, the Minister of Domestic Trade, Co-operatives and Consumerism or the Registrar of
Companies must first approve the name or the new name of the company respectively accordingly.

The statutory provision under section 22 of the Act
provides that:
1) Except with the consent of the Minister, a company shall not be registered by a name that, in the
opinion of the Registrar, is undesirable or is a name, or a name of a kind, that the Minister has
directed the Registrar not to accept for registration.
2) The Minister shall cause a direction given by him under subsection (1) to be published in the
Gazette. Government Gazette No. 716 dated 30 January 1997 and Gazette (Amendment) dated 11
October 2001.
3) A limited company shall have "Berhad" or the abbreviation "Bhd." as part of and at the end of its
name.
4) A private company shall have the word "Sendirian" or the abbreviation "Sdn." as part of its name,
inserted immediately before the word "Berhad" or before the abbreviation "Bhd." or in the case of
an unlimited company, at the end of its name.
5) It shall be lawful to use and no description of a company shall be deemed inadequate or incorrect
by reason of the use of .

Proposed Name of The Company
The applicant for registration shall apply in the prescribed form to the Registrar for a search as to
the availability of the proposed name of the intended company, company or foreign company and
for reservation of that name, if available. Please refer to Government Gazette No. 716 dated 30
January 1997, Gazette (Amendment) dated 11 October 2001, Guidelines For Naming A Company
and Guidelines For Application Of A Company Name.
Similar provision which is applicable for foreign companies is contained in section 341(1) of the Act

LOCAL COMPANY INCORPORATION GUIDELINES
INCORPORATION OF A COMPANY MALAYSIA
The two types of companies that can be incorporated under the Companies Act 1965 (CA 65) are:
▪ A company limited by shares
▪ An unlimited company
I. COMPANY LIMITED BY SHARES
A company having a share capital may be incorporated as a private company (identified through the
words ‘Sendirian Berhad’ or ‘Sdn. Bhd.’ appearing together with the company’s name) or public
company ‘Berhad’ or ‘Bhd’ appearing together with the company’s name).

The requirements to form a company are:
i. A minimum of two subscribers to the shares of the company (Section 14 CA);
ii.A minimum of two directors (Section 122); and
iii.A company secretary who can be either :
▪An individual who is a member of a professional body prescribes by the Minister of Domestic
Trade Cooperative and Consumerism; or
▪An individual licensed by the Companies Commission of Malaysia (SSM)
Both the director and company secretary shall have their principal or only place or residence within
Malaysia.

A. INCORPORATION PROCEDURES
1. Application of Name Search
A name search must be conducted to determine whether the proposed name of the
company is available. Refer to Government Gazette No. 716 dated 30 January 1997,
Gazette (Amendment) dated 11 October 2001, Guidelines For Naming A Company and
Guidelines For Application Of A Company Name. The steps involved are:
i. Completion and submission of Form 13A CA (Request For Availability Of Name) to
SSM; and
ii.Payment of a RM30.00 fee for each name applied.

Where the proposed company’s name is approved by SSM, it shall be reserved for three
months from the date of approval.
2. Lodgment of Incorporation Documents
Incorporation Documents (as further explained in Part B below) must be submitted to
SSM within 3 month from the date of approval of the company’s name by SSM, failure
of which a fresh application for a name search must be done. (Steps (i) and (ii) above
shall have to be repeated).

B. INCORPORATION DOCUMENTS TO BE LODGED WITH
SSM
1. Memorandum and Article of Association
An original of the Memorandum and Article of association shall each be stamped at RM100.00.
Stamps are affixed at the Inland Revenue Board’s stamp office.
▪ The first directors and secretaries shall be named in the Memorandum and Article of Association.
▪ The subscribers to the company’s shares shall sign the Memorandum and Articles of Association in
front of a witness.
▪ Table A of the Fourth Schedule in the CA can be adopted as the Article of Association of the
company (Section 30 CA).
*NOTE: For incorporation of a private company, the articles of association shall contain the following stipulations.
i. Restriction on the right to transfer the company’s shares;
ii. Limitation on the number of members to not exceed fifty;
iii. Prohibition to any invitation to the public to subscribe the shares/debentures of the company; and
iv. Prohibition on public invitation to deposit money with the company.

2. Form 48A (Statuary Declaration By A Director Or Promoter Before Appointment)
The director or promoter declares under oath that:
▪He/ She is not a bankrupt; and
▪He/ She has not been convicted and imprisoned for any prescribed offences.
3. Form 6 (Declaration of Compliance)
This declaration states that all the requirements of the CA have been complied with. It must be signed
by the company secretary who handles the registration and is named in the Memorandum and
Articles of Association.
4. Additional Documents:
▪ Original copy of Form 13A.
▪ A copy of the letter from SSM approving the name of the company.
▪ A copy of the identity card of each director and company secretary.

C. REGISTRATION FEES
Each application for the incorporation of a company shall be accompanied with payment as per the
schedule following:
AUTHORISED SHARE CAPITAL (RM) FEES (RM)
Up to 400,000 1,000
400,001 – 500,000 3,000
500,001 – 1 million 5,000
1,000,001 – 5 million 8,000
5,000,001 – 10 million 10,000
10,000,001 – 25 million 20,000
25,000,001 – 50 million 40,000
50,000,001 – 100 million 50,000
100,000,001 and above 70,000

D. CERTIFICATE OF CORPORATION
A Certificate of Incorporation will be issued by SSM upon compliance with the incorporation
procedures and submission of the duly completed Incorporation Documents.

2. UNLIMITED COMPANY
The procedures and Incorporation Documents for the incorporation of an unlimited
company is the same as company limited by shares. The only difference is that for an
unlimited company, the liability of its members must be stated in the Memorandum of
Association as unlimited.
Upon incorporation, the company is advised to obtain the required license/permit/approval from
other relevant authorities prior to carrying on any business outlined in the Memorandum of
Association.

FOREIGN COMPANY REGISTRATION GUIDELINES
A foreign company may carry on business in Malaysia by either:
▪Incorporating a local company with the Companies Commission of Malaysia (SSM); or
▪Registering the foreign company in Malaysia with SSM.
Foreign company is defined under the Companies Act 1965 (CA 65) as:
a) a company, corporation, society, association or other body incorporated outside Malaysia; or
b) an unincorporated society association, or other body which under the law of its place of origin may
sue or be sued, or hold property in the name of the secretary or other officer of the body or
association duly appointed for that purpose and which does not have its head office or principal
place of business in Malaysia.

A. REGISTRATION PROCEDURES
1. Application of Name Search
A name search must be conducted to determine whether the proposed name of the
company is available for registration.
Refer to Government Gazette No. 716 dated 30 January 1997, Gazette (Amendment)
dated 11 October 2001, Guidelines For Naming A Company and Guidelines For
Application Of A Company Name. The steps involved are:
i. Completion and submission of Form 13A of the CA (Request for Availability of Name)
to SSM.
ii. Payment of an RM30.00 fee for each name applied.
The name to be used to register the foreign company should be the same as registered in its
country of origin. Where the proposed company’s name is approved by SSM, it shall be reserved for
three months from the date of approval.

2. Lodgment of Registration Documents
Registration documents (as further explained in Part B below) must be submitted to SSM within 3
months from the data of approval of the company’s name by SSM, failing which a fresh application
for a name search must be done (i.e. steps (i) and (ii) above shall have to be repeated).

B. REGISTRATION DOCUMENTS
The following documents shall be submitted to SSM for registration:
i. A certified copy of the certificate of incorporation or registration of the foreign company.
ii. A certified copy of the foreign company’s charter, statute or Memorandum and Articles of
Association or other instrument defining its constitution.
iii. Form 79 (Return by Foreign Company Giving Particulars of Directors and Changes of
Particulars).
*NOTE: If the list includes directors residing in Malaysia who are members of the local board of
directors of the foreign company, a memorandum stating their powers must be executed by or
on behalf on the foreign company and submitted to SSM.
iv. A memorandum of appointment or power of attorney authorizing the person (s) residing in
Malaysia, to accept on behalf of the foreign company any notices required to be served on such
foreign company.
v. Form 80 (Statutory Declaration by Agent of Foreign Company).
vi. Additional documents consisting of: The original copy of Form 13A; and A copy of the letter
from SSM approving the name of the foreign company.

AUTHORISED SHARE CAPITAL (RM) FEES (RM)
Up to 100,000 1,000
100,001 – 500,000 3,000
500,001 -1 million 5,000
1,000,001 – 5 million 8,000
5,000,001 – 10 million 10,000
10,000,001 – 25 million 20,000
25,000,001 – 50 million 40,000
50,000,001 – 100 million 50,000
100,000,001 and above 70,000
1. In determining the amount of
registration fees, the nominal share
capital of the foreign company should
first be converted to the Malaysian
currency (Ringgit Malaysia) at the
prevailing exchange rate.
2. In the event a foreign company does not
prescribe any share capital, a flat rate of
RM 1,000.00 shall be paid to SSM.

D. CERTIFICATE OF REGISTRATION
A certificate of registration will be issued by SSM upon compliance with the registration
procedures and submission of duly completed Registration Documents.
If any of the described registration documents are in languages other than Malay or
English, a certified translation of such documents in Malay or English shall be required.
On July 2nd , 2013 the company TELEKOMUNIKASI
INDONESIA INTERNATIONAL (MALAYSIA),
SDN. BHD.
is established.

License Application
Policies and Regulations are the tools which SKMM uses to create a conducive communications and
multimedia (C&M) environment that is both pro-consumer and pro-business.
To ensure sustainable growth and competition, SKMM formulates and develops policies, as well as
standards, codes of practices and advisory guidelines pertaining to issues such as licensing which is
an important mechanism to regulate industry to ensure healthy competition.
Our Clients’ Charter outlines our commitment towards the successful implementation of the
Communications and Multimedia Act 1998 (CMA). Our undertakings to the license applicants
including ensuring the license applications are being processed timely and to ensure that we
promote fair competition and market development through transparent regulatory processes as
outlined in the CMA.

Application Procedure
In view of the increasing demand for various services and applications from the communications
and multimedia industry, SKMM recognizes the need to inform and update the industry of existing
licensing application procedure and criteria.
The aim is to facilitate the application process with clear deadlines and help to improve the
understanding of potential license applicants on the criteria and process.

The Communications and Multimedia Act 1998 (CMA) establishes a framework to promote Malaysia’s
national policy objectives for the communications and multimedia industry and seeks to provide a
generic set of regulatory provisions based on generic definitions of market and service activity.
The licensing provisions under the CMA are designed to allow flexibility with respect to licensing
structures as the licensing requirements vary over time with the evolution of the communications and
multimedia industry. As the industry evolves towards convergence, licenses under the CMA are
formulated to be both technology and service neutral. The licensing regime allows a licensee to
undertake activities that are market specific. This creates opportunities for expansion into the industry
and provides for a more effective utilization of network infrastructure.

Under the CMA, there are four categories
of licensable activities. Within the activity
categories, there are two key types of
licenses:
a) individual license requires a high
degree of regulatory control which is
for a specified person to conduct a
specified activity and may include
special conditions; and
b) class license is a “light-handed’ form of
regulation which is designed to
promote industry growth and
development with easy market access.
Standard license conditions apply to both
individual and class license and these
conditions are set out in the Schedule to
the CMA.
LICENSE TYPES OF license
Individual ▪ Network Facilities Provider (NFP)
▪ Network Services Provider (NSP)
▪ Content Applications Service Provider
(CASP)
Class ▪ Network Facilities Provider (NFP)
▪ Network Services Provider (NSP)
▪ Content Applications Service Provider
(CASP)
▪ Applications Service Provider (ASP)

Individual licenses must be applied for and are
granted by the Minister. Special or additional
license conditions may be imposed and such
license conditions are declared by the Minister.
The Minister also has the power to modify, vary,
revoke or impose further special or additional
conditions at any time. However, the affected
licensees will be notified of the intention to do so
to enable them to make the appropriate
submissions.
The Minister may grant a class license in respect of
any matter requiring a license under the CMA.
Unlike an individual license, a class license merely
requires registration, which is an administrative
process.
Model Characteristics
License
Requirement
Full
MVNO
▪ Owns or provides network facilities and
network services (Tower, HLR, etc.)
▪ Able to operate independently of the
MNOs
▪ Able to secure their own numbering
ranges, offer its own SIM card etc.
▪ Have full flexibility on the design of the
services and tariff structures
✓ NFP individual
license
✓ NSP individual
license
✓ ASP class
license
Enhanced
Service
Provider
▪ Do not own or provide network facilities
▪ Have the ability to secure its own
numbering range, operate its own HLRs,
offer its own SIM cards with its own
mobile network code
▪ Dependent on MNOs for network
facilities and access to radio network
✓ NSP individual
license
✓ ASP class
license
Enhanced
Reseller
▪ Distributors who resell services
provided by MNOs
▪ Dependent on MNOs for network
facilities and access to radio network
▪ Do not have own SIM cards
▪ Likely to carry out customer care and
billing in house
✓ NSP individual
license
✓ ASP class
license
Reseller
▪ Merely resell subscription to end users
▪ Completely dependent on MNOs for
every aspect of service provision, billing
and customer care
✓ ASP class
license

Application Procedure
Individual license
An applicant who wishes to provide network facilities and or, network services and or content
application services which require an individual license will have to submit the following to MCMC:
a. A duly completed Form A (Annexure 1) together with an application fee of RM10,000.00;
b. Details as per the checklist attached (Annexure 2); and
c. Such additional information or document as may be requested by MCMC; failure to submit within
the stipulated timeline given, the application shall be deemed to be withdrawn and shall not be
further proceeded with, but without affecting the right of the applicant to make a fresh
application.

Individual license
MCMC is deemed by the CMA to complete processing an individual license application and make a
recommendation to the Minister within sixty (60) days of receipt of all relevant and complete3
information from the applicant. If the Minister agrees with the recommendation, the Minister will grant
an individual license to the applicant. MCMC will register the individual license upon payment of the
approval fee of RM50, 000 per license and inform the applicant.
Under the CMA, if the Minister neither grants, nor refuses to grant, an individual license within thirty
(30) days from the receipt of the recommendation by MCMC, the Minister is deemed, at the end of the
period, to have refused to grant the individual license unless the applicant receives a written notice
approving the application for an individual license after the period.
If the Minister rejects the application for an individual license, the applicant will be informed of the
rejection in writing and reasons for the rejection.
MCMC will endeavor to complete processing individual license applications and make a
recommendation to the Minister within fourteen (14) days4. This is provided that the applicant has
furnished a proper application, with complete and relevant information furnished.

Class license
An applicant who wishes to provide network facilities and or, network services and or applications
service or content applications services which are subject to a class license will have to submit the
following to MCMC:
a. Two copies of the duly completed Form D (Annexure 3);
b. A registration fee of RM2,500.00;
c. Details as per the checklist attached (Annexure 4); and
d. Such additional information or document as may be requested by MCMC.

Licensing Under The Communications And
Multimedia Act 1998
The CMA licensing regime provides an activity based licensing regime which is technology neutral. Part
IV of the CMA 1998 contains provisions relating to licenses. There are two types of licenses within four
categories of licensable activities under the CMA 1998. A licensee therefore, may choose to provide
services between eight possible types of licenses.
Section 126 of the Act prohibits any person from owning or providing any network facility, network
service or applications service except with an individual or class license. Under the Act any person who
owns a network facility, provision of network service or applications services that is solely on the
customer side of the network boundary is exempted from licensing requirement under the Act.

Individual license
An individual license is granted to a person who conducts an activity which requires a high degree of
regulatory control. Section 6 of the CMA defines an individual license as a license for a specified person
to conduct a specified activity and may include conditions to which the conduct of that activity shall be
subject.
Section 27(1) further provides that a person who wants to operate under an individual license may
apply in writing to the Communications and Multimedia Commission and the Commission shall make
recommendations to the Minister within sixty days of receiving the application whether or not that
person should be granted an individual license.

Class license
Class license is a type of license introduced into the industry by the CMA 1998 to cater for the needs of
small operators. It has a lighter form of regulatory control and minimal procedural requirements. In class
license, the minister sets out the rights and obligations which apply generally to persons engaged in a
particular activity.
Section 6 defines a class license as a license for any or all persons to conduct a specified activity and may
include conditions to which the conduct of that activity shall be subject. Section 131 further provides
that a person shall not operate under a class license in respect of any network facilities, network or
applications service unless registered by the Commission.

Class license
The Minister may grant a class license in respect of any activity requiring a license under the
CMA and a person who falls within a class license that has been granted by the Minister
under section 44(1) may operate an activity by submitting a registration notice to the
Commission. This simply means that a Minister will grant class licenses and lists what
services fall under these different types of class licenses. An operator therefore needs to
check whether the type of service he intends to provide fall under any of the services that is
listed by the Minister. If the service is not listed in the determination then the operator
needs to apply for an individual license for that same activity.
The Communications and Multimedia (Licensing) Regulations 2000 restrict a foreign
individual who is not a permanent resident and foreign company (as defined under the
Companies Act 1965) from registering a class license.

Licensable Activities
Within the two-abovementioned license types, there are four licensable activities.
A person who wishes to provide a service to the industry must provide service that falls within
these four categories i.e. network facility, network service, applications service and content
applications service.

Network Facilities
Network facility is an activity which provide facilities or infrastructures to the industry upon which
network, applications and content applications services depend for example earth stations, broadband
fiber optic cables, telecommunications lines and exchanges, radio communications transmission
equipment, mobile communications base stations and broadcasting transmission towers and
equipment.
In addition to this, section 130 provides that the Minister may determine that a licensed network
facilities provider, other than the owner of any network facilities, be a nominated facilities provider for
the network facilities and thereby exempting the owner of the network facility from the provisions of
the Act.

Network Services
The services that fall under this category are services that provide basic connectivity and bandwidth to
support a variety of applications services for example broadcasting distribution services, cellular mobile
services, customer access services and mobile satellite services. In other words, network services enable
connectivity or transport just like a car on a road.
Most of the network service provider in this country are also the owner to a network facility, however, a
network service provider who does not own a network facility may provide network service using a
network facility owned by another provider.

Applications Service
Applications services provide particular functions or capabilities delivered to end-users such as voice
services, data services, electronic commerce and other transmission services. The Act also contains
provisions on required applications service. Section 192 provides that the Minister may determine a list
of required applications services which may include,
✓ emergency services;
✓ directory assistance services;
✓ operator assistance services; and
✓ services for disabled consumers.

Content Applications Service
Content applications services provide a type of applications service which contains content. In other
words, it is a subset of applications service. Examples of content applications services are traditional
broadcasting, online publishing and information services. Section 205 prohibits a person from providing
a content applications service unless with an individual or class license. Further, section 207 and 209
contain provisions for closed content applications service and limited content applications service
respectively. Section 207 exempts from licensing requirement any closed content applications service.
In the absence of any determination made by the Minister, a closed content applications service is a
closed content applications service is confined to a single dwelling or a content applications service
provided only to the employees or officers of a single body corporate. A limited content applications
service provider is also exempted from holding an individual license though he may be subject to a class
license. Lastly, section 208 provides that any content incidental to the service is exempted from
licensing.

In order to propose products and services will be provided, Telin Malaysia
has an obligation to apply such a necessary license required. According to
the guideline from MCMC, Telin Malaysia has to apply both NSP Individual
and ASP Class licenses.
Applying NSP Individual License, several documents should be prepared are as follow:
1. Form 9 (Incorporation of company) from Register of Companies.
2. Anticipated operating and capital expenditure, proposed financing plan including the sources of
financing, whether domestic or foreign. The minimum requirement for paid-up capital is
RM500,000. This minimum requirement is based on previous approved applications as this is one
criteria to indicate the financial capability of an applicant.
3. The proposed operating procedures including a disaster recovery plan.
4. Any other licenses held by the applicant under the Act, its group of companies and any company
which is deemed to be associated with a director of the applicant by virtue of section 122A of
Companies Act 1965.
5. Corporate information including the particulars of the companies referred to in Sub regulation (7)(d)
and particulars disclosing the ultimate beneficial shareholders of the applicant and any company
referred to in Sub regulation (7)(d) which hold a license together with information detailing the
direct and indirect shareholdings of all their shareholders.

Applying NSP Individual License, several documents should be prepared are as follow:
6. Latest audited accounts, memorandum and articles of association and certified true copies of
Forms 24, 44 and 49 under the Companies Regulations 1966 [P.U. 173/1966] of the applicant
which have been filed with the Registrar of Companies.
7. The proposed technical and service roll-out.
8. A description of the nature of the facilities, service, applications or content and area of coverage
and the types of technology to be used.
9. Copies of any documentation on details of spectrum assignment, apparatus assignment, apparatus
assignment or a class assignment Particulars of the above must be stated in the form (item no.5).
10. Copies of details of the application (if any) on spectrum assignment, apparatus assignment or class
assignment submitted to the Commission Particulars of the above must be stated in the form (item
no.6).
11. Joint venture (if applicable)– copies of documentation on compliance with the Foreign Investment
Committee requirements.
12. A copy of any letter and supporting documents from the relevant authority on the suspension or
revocation of the license as per item no.9.
13. Attachments must be initialed by the signatory. 14. A crossed cheque for the amount of
RM10,000.00 payable to Suruhanjaya Komunikasi dan Multimedia Malaysia – being the application
fee for each license applied.

On the other side, for ASP license application, the light fulfillment of documents should
be prepared are:
1. Two (2) sets of the Registration Notice
2. Certified copies* of relevant documents in support of the legal status of applicant
(company/partnership/individual/society/others)
3. A crossed cheque for the amount of RM2,500.00, made payable to Suruhanjaya Komunikasi dan
Multimedia Malaysia.
4. Organization profile (for companies/partnership/society) inclusive of current number of staff and
new job opportunities to be created
5. A proposal on the facilities/services should include:
a) Introduction – brief description of network/service/facility to be offered and other related
information.
b) Operating procedures including a network topology, details of equipment to be used,
connectivity to be obtained.
c) Other related information.
6. Each page of annexure should be initialed by the above signatory.

Approaches and Strategies
There are 3 streams for an MVNO to be defined as the starting project business, these are:
1. Strategy, commercial, and contracts, work stream
2. Telecom/IT platforms and operations work stream
3. Content platforms and handsets work stream
Those streams will be aligned with three steps of phase will be thorough by the common processes of
MVNO business.

Strategy, Commercial, and Contracts
1st phase:
▪ Market forecast and pricing
▪ Regulatory aspects
▪ Negotiations with MNOs
▪ Draft business plan
▪ Risk assessment
▪ Sales/distribution concept
2nd phase:
▪RfP/RfQ commercial lead
▪Partner selection
▪Governance concepts
▪Contracts finalization, incl. content
contracts
▪Final business plan
3rd phase:
▪ Contracts sign-off
▪ Setup of reporting and controlling
organization
▪ Market campaign implementation

Telecom/IT platforms and operations
1st phase:
▪ Network concept
▪ Operations concept
▪ Assessment of existing OSS environment
▪ Sourcing concept
▪ Requirements specification
2nd phase:
▪ RfP/RfQ tech. support
▪ Refine operations concept with suppliers, incl. SLA
▪ Acceptance and inter- operability tests
▪ Budget planning
3rd phase:
▪ Implementation roadmap
▪ Implementation of network components, OSS/BSS, and
connectivity
▪ Setup of tech. organization
▪ Field trials

Content Platforms and Handsets
1st phase:
▪ Content business strategy
▪ Content operations mode
▪ Content business plan
▪ Requirements specification
2nd phase:
▪ RfP/RfQ tech. support
▪ Content acquisition and partner management concept
3rd phase:
▪ Integrate content platform in operations environment
▪ Establish content acquisition and partner management

Business law module 8

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