SEDIA INVESTMENT PROMOTION UNIT

FAQ-SETTING UP A BUSINESS IN SABAH

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Frequently Asked Questions

SETTING UP A BUSINESS IN SABAH

There two types of licenses required to operate a business in Sabah namely, the Trading License. The application of Trading License can be made to Dewan Bandaraya Kota Kinabalu (DBKK) or at the District Office of the respective district your business will be operating in.

For the former, you can apply via online (insert website), while the latter, the applicant is required to physically apply it at the respective District Office. (Please call us for further clarification).

A director or appointed manager(with appointment letter) can be local Sabahan or permanent resident of Sabah. For foreigner, the application must be made via establishing of registered company with a valid work pass.

The process of obtaining a development plan permit is take 90 to 104 days . It is advisedly for a company to start the process early.

There are four types of lands in Sabah, each has its own zoning and land use classification summarised as follows:-

  1. Country Lease (CL) – Anyone can buy this type including individuals, foreigners and companies.
  2. Town Lease (TL) - Similar to Country Lease, this type of land can also be owned by anyone, including individuals, foreigners, and companies. It's typically used for urban development and commercial purposes.
  3. Native Title (NL) – only the Native people of Sabah can buy
  4. Field Registrar (FR) – Classified under Native Title, waiting for final title to be issued from the land office.

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