If you wish to start a Construction related business, you have to apply CIDB license.The Construction Industry Development Board (“CIDB”) is an inescapable presence for those engaged in the construction industry within Malaysia, largely through the levy which it imposes on all major construction projects, and the compulsory courses which it conducts.
Registration of Contractors
As per the Act, no person shall undertake any construction works unless he is registered and holds a valid certificate of registration issued by CIDB. Non-registration is an offence punishable by a fine not exceeding RM 50,000.00.
Registration of local contractors is time-based. Local contractors are entitled to be registered, in particular categories such as Civil Engineering Construction, Building Construction and Mechanical and Electrical, for a minimum period of 1 year but not exceeding 3 years to perform construction works in Malaysia.
A contractor is not allowed to execute any construction works outside his registered category.
Categories or Grades
There are 7 specified registration grades for each category as set out below and a contractor is not entitled to undertake any construction project which exceeds the value of the construction works specified in the registration grade. The registration fee payable to CIDB varies according to the registration grade. There are following Grades/ Categories of CIDB License according to tendering capacity ;
G1 Not exceeding 200,000
G2 Not exceeding 500,000
G3 Not exceeding 1 Million
G4 Not exceeding 3 Million
G5 Not exceeding 5 Million
G6 Not exceeding 10 Million
G7 No Limit
Foreign Contractor Registration
Foreign contractors registration is project-based. The certificate of registration of a foreign contractor allows the holder to execute only the project specified in the certificate. The Foreigner contractor has to apply to CIDB for an extension of the validity of the certificate within 14 days before the expiry of the validity of the certificate.
LEVY ON CONTRACTORS
A CIDB registered contractor is bound to notify the CIDB of any contract which he has executed having a contract sum of more than RM 500,000.00. The percentage of levy is calculated as 0.125 % of the contract sum by way of Regulation 2 of the Lembaga Pembangunan Industri Pembinaan Malaysia (Imposition of Levy) Order 2003 effective from 21.5.2003.
Fine on No-Notification
If the contractor has not notified the CIDB regarding the contract executed in an amount more than RM500,0000, it’s an offence that shall on conviction be liable to a fine of RM 5,000.00. Further the amount of any levy payable may be recoverable as a civil debt due to CIDB.
QADKAM assistance in obtaining CIDB Licence
If you meet the Government criteria, QADKAM professional are here to assist you in paper work to get your CIDB license in very time limit and speedy way. Please contact us for further assistance.