Must-Read for New Business Owners4 Key Steps to Legal Signboard Installation and Permit Approval

For many first-time business owners, putting up a shop signboard might seem as easy as hiring a designer, sending it for production, and getting it installed. But in reality, a proper commercial signboard is much more than just a decoration — it’s the first impression of your brand and involves several important legal requirements, including government approvals, size and placement regulations, lighting design, and safety standards.

If you fail to prepare properly, you may face fines or forced removal from the local municipal council (Majlis Perbandaran), and worse, it could damage your brand image and drive potential customers away.

In Malaysia — especially in areas like Kuala Lumpur (KL), Selangor, Penang, and Johor Bahru (JB) — the signboard permit application process typically involves four key steps:

1 Prepare and compile all required documents

2 Submit your application to the local municipal council

3 Wait for technical review and feedback (and revise if needed)

4 Begin production and installation only after the permit is approved

To help you avoid the most common mistakes new business owners make, this guide will walk you through everything you need to know before installing a signboard in Malaysia — from permit approvals and design requirements to lighting rules and installation safety — so you can launch your business smoothly, legally, and confidently.
 

Step 1: Understand the Local Signboard Approval Process

In Malaysia, installing a shop signboard isn’t as simple as putting it up whenever you like. Before any installation work begins, you must apply for and obtain a Signboard Permit from the local municipal council (Majlis Perbandaran / Majlis Bandaraya). This is the first and most crucial step to ensure your signboard is legally approved — and one that every business owner must follow.

Each local municipal council — such as DBKL (Kuala Lumpur City Hall), MBPJ (Petaling Jaya City Council), MBJB (Johor Bahru City Council), and MBPP (Penang Island City Council) — has its own specific approval requirements and procedures. However, the overall process is generally similar and typically involves several key stages: document preparation, application submission, technical review, and final permit issuance.

Common documents required include:

• Company registration certificate (SSM) and applicant’s IC / passport copy
• Tenancy agreement or property ownership documents
• Signboard design layout and dimension details
• Photos of your shopfront and the proposed installation location
• Support letter from the Fire Department (if required)

Pro Tip: The approval process typically takes 2 to 4 weeks, so it’s best to start the application early — ideally before your renovation work begins.

 Important: Installing a signboard without official approval may result in fines ranging from RM300 to RM5,000, and in some cases, your signboard could be forcibly removed by the authorities.
 

2.0 Signboard Size & Placement Guidelines: How to Design Eye-Catching Yet Compliant Signage

Before you receive government approval, signboard size and design are among the most critical — and most commonly overlooked — steps in the entire process. In Malaysia, every municipal council has clear regulations on dimensions, placement, and structural design, and business owners must strictly follow them to pass the approval process.

A good signboard should not only be visually appealing but also compliant, easy to read, and within legal standards. Failure to meet these requirements can result in your application being rejected — or worse, fines and removal orders even after installation.
 

2.1 Basic Size & Placement Rules: It’s Not a Free-for-All

Municipal councils across Malaysia enforce strict standards for signboard length, height, thickness, and installation position. If you plan to install a billboard or 3D signage, you’ll also need to apply for a separate Billboard Permit, which involves a more complex review process. While the exact regulations may vary slightly by city, most follow these general rules:

• Length: The signboard must not exceed the width of your storefront. It’s recommended to leave a buffer of 10–20 cm on both sides.
• Height: Typically limited to 1.2m – 2.4m. Anything too tall or too short could affect visibility and approval.
• Thickness: Lightboxes or 3D lettering should not exceed 30 cm in thickness, and the signboard must not protrude into public space.
• Placement: The signboard must be securely fixed within your shop’s boundary. It should not block road signs, fire hydrants, or obstruct the view of pedestrians and drivers. It’s highly recommended to have a professional team conduct an on-site measurement and evaluation before finalizing the design.

2.2  Language & Text Requirements: Bahasa Melayu Comes First

In Malaysia, Bahasa Melayu (Malay) must be the primary language on all commercial signboards — this is a strict legal requirement. The Malay text should make up at least 50% of the overall font size, while English, Chinese, or other languages may be included as secondary text but must not overshadow the Malay wording.

Correct example: “Kedai Roti ABC Bakery ”

Incorrect example: “ABC Bakery Kedai Roti” (Malay is not placed first or is too small)

Pro Tip: Some city councils also require specific official terms to be used on signboards, such as “Restoran” (restaurant), “Klinik” (clinic), or “Farmasi” (pharmacy). It’s best to check the local council’s signage guidelines in advance to avoid application delays or rejections.
 

2.3 Lighting & Material Choices: Balance Aesthetics with Safety

Lighting plays a huge role in how visible and attractive your signboard is at night — but it’s not just about looks. All lighting elements must also comply with safety and fire regulations. If you plan to use LED lights, neon signage, or backlit lightboxes, make sure to pay attention to these two key points:

• Brightness & Direction: Your signboard’s lighting should never be too bright or glaring. It must not distract drivers, affect traffic visibility, or disturb nearby residents.
• Safety Standards: Always use waterproof, anti-leakage certified materials, and ensure the installation is done by a licensed electrician — especially for outdoor signboards.

 Risk Warning: Poor-quality lighting or improper installation can lead to electrical leaks, falling signage, or even legal liability in the event of accidents.

Pro Tip: Opt for energy-efficient LED systems whenever possible. They have a much longer lifespan and significantly reduce long-term electricity costs — a smart investment for any business.
 

2.4  Installation & Final Inspection: Material and Construction Preparation

When it comes to installation, choosing the right materials is just as important as the design itself. For outdoor signboards, it’s highly recommended to use weather-resistant materials such as aluminum composite panels, stainless steel, or acrylic, which can withstand harsh sunlight and heavy rain.

For indoor signage, materials like wood or UV boards are often preferred for their aesthetic appeal and versatility.

Selecting the right material not only enhances the visual impact of your signboard but also directly affects its durability, maintenance cost, and long-term performance.

 Common Signboard Material Comparison:

Once the design and approval stages are complete, the final step is professional installation and inspection — a stage many first-time business owners tend to overlook, but one that’s absolutely crucial.

• ‍ Hire a professional team: Ensure the structure is stable, secure, and fully compliant with safety regulations.
• Double-check height and placement: The signboard must not extend beyond the building’s boundaries or block any public signs.
•  Keep installation records: These may be required during future inspections by local authorities.
• Submit for final inspection if necessary: This helps reduce the risk of penalties or enforcement issues later on.

Conclusion: Compliance Is the First Step to Success

A great signboard is more than just a “storefront” — it’s the first impression of your brand, a key driver of foot traffic, and often the deciding factor in whether customers choose to step inside.

By carefully managing every stage — from permit approval and design to lighting and installation — you can avoid fines, prevent removal risks, and ensure that your business projects a professional, trustworthy image from the very first day it opens.

FAQ

1. Do I need to reapply for permits if I want to change my signboard?

Yes. Any changes to the design, size, or language of your signboard require a new application. Only minor repairs or replacing lighting usually don’t need re-approval — but it’s always best to confirm with your local municipal council first.
 

2. Can I reapply for permits if my signboard was removed by the authorities?

Yes, you can. However, you’ll first need to resolve any previous violations (such as submitting missing documents or adjusting the design/size/language) before reapplying. Some councils may also charge additional penalties or administrative fees for a second application.
 

3. Can I just add new designs or text to my existing signboard without reapplying permits?

Not recommended. Any modification — whether it’s changing the text, language, size, position, or adding a logo — is considered a new signboard and requires a new permit.
 

4. Can I install more than one signboard if my shop has multiple entrances?

Yes, but each signboard requires a separate permit, and all must comply with size, lighting, and placement regulations. Some councils also limit the total number of signboards per shop, so it’s a good idea to check the rules before applying.
 

5. Do signboard permits need to be renewed regularly?

It depends on the location. In some areas, signboard permits are permanent, but in many cities, you’re required to renew them every year or every two years — especially if your signboard includes lighting, electrical components, or advertising features.
 

Pro Tip:

If you’re not sure where to start, reach out to Great Sign Advertising (M) Sdn Bhd — we offer a one-stop signboard solution covering everything from design and permit application to production and installation. Our team ensures the entire process is legal, safe, and efficient, helping your brand stand out across KL, Selangor, Penang, Johor Bahru, Ipoh, Melaka, and beyond.