PKFZ Rules & Regulation Section 1:
Introduction to PKFZ
This is the first edition of the Free Zone Rules.
The rules presented in this publication correspond to the order in which they would become applicable, whereby a client progresses from the initial application stage to eventually being established in the Free Zone.
Upon receipt of this publication, please ensure that it is kept where it can be readily located and retrieved for your future reference if required.
The Port Klang Free Zone (PKFZ) was created by the Government of Malaysia under the Free Zone Act 1990 on 9th June 2005 with the main objective of attracting companies to operate in PKFZ through the provision of various attractive incentives. Among these include:
No taxation, i.e. deferment of customs duties, excise duty, sales tax or service tax
100% foreign equity
Pioneer status / tax exemption / investment tax allowance and other types of incentives (only for qualified companies)
Companies are required to have the following licenses to operate in the Free Zone, issued by the relevant government authorities and assisted by the OSA Department of PKFZ:
Manufacturing License – To carry out manufacturing activities (issued by MIDA)
ZB4 – To carry out any activity within PKFZ
Business License – To carry out business activities in PKFZ (issued by the Klang Municipal Council)
Companies are required to register with the Companies Commission of Malaysia (CCM) under the Companies Act 1965 in order to engage in any business activity in PKFZ. There are three types of companies: Company limited by shares; Company limited by guarantee; and Unlimited company.
The One Stop Agency (OSA) of PKFZ would liaise, coordinate and follow up with the relevant government authorities in assisting clients to get their licenses as stated in clauses 1.1.5 and 1.1.6. The OSA would assist clients in signing up the lease agreement to take up a premise in PKFZ. The OSA will then liaise with PKFZ’s Engineering Department and the Local Authority to obtain building construction approval, and further advice clients on the incentives and documentation requirements by MIDA/Customs.
PKFZ provides ready built facilities such as warehouses, factories and offices for leasing to its clients. Companies wishing to construct their own facilities to their own specifications and design can do so by leasing a plot of prepared land of the required area for that purpose.
Operations in the Port Klang Free Zone are subject to the rules listed in this publication.