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Sohaib Ikram
Sohaib Ikram serves as the Director of Emerhub in Malaysia.
The WRT license is a mandatory permit issued by the Ministry of Domestic Trade and Consumer Affairs (MDTCA) in Malaysia. It is required for all foreign-owned companies involved in wholesale and retail trade activities within the country.
For foreign investors and entrepreneurs looking to establish wholesale and retail trade operations in Malaysia, obtaining this license is a crucial step.
Therefore, in this article, we will walk you through the essentials of the WRT license in Malaysia and how to apply for one.
Who Needs a WRT License?
The WRT license requirement in Malaysia is primarily based on the ownership structure of the company and the nature of business activities. The Ministry of Domestic Trade and Cost of Living (KPDN) is the government body responsible for approving WRT license applications.
Here’s a breakdown of who needs to obtain a WRT license:
A. Ownership Structure
- Companies with more than 50% foreign ownership engaging in wholesale and retail trade activities must apply for a WRT license.
- If Malaysian ownership exceeds 50%, the company may be exempted from the WRT license requirement.
B. Business Types
The WRT license is required for foreign-owned companies involved in the following trade categories:
- Retail operations
- Wholesale activities
- Trading (Import & Export)
- Distributive trade
- Restaurant and franchise businesses
- Certain service and consultancy sectors related to distributive trade
For example, if you start a Food and Beverage business in Malaysia with more than 50% foreign ownership, you will need to acquire a WRT license from the Ministry of Domestic Trade and Cost of Living.
Businesses Restricted for Foreign Ownership
While the WRT license allows foreign investors to establish retail and trading operations in Malaysia, certain business types remain restricted, even with a valid license. These restrictions protect local businesses and ensure balanced economic growth.
Malaysia does not permit foreigners to operate in the following business sectors, regardless of license status:
- Supermarkets and Mini Markets such as local neighborhood grocery stores and small-scale supermarkets
- Provision Shops
- Textile and Clothing Stores
- Furniture Shops
- Traditional Chinese and Herbal Medicine Shops
- Petrol Stations
- Sundry Shops
- News Agents and Bookshops
- Computer and Accessories Shops
- Non-Exclusive Restaurants and Cafes
- Cybercafés
- Car Workshops
- Hair Salons and Beauty Parlors
- Laundry Services
For foreigners who plan on setting up a business in any of the restricted sectors, they often go for a joint venture with a local Malaysian partner. However, keep in mind that the foreign ownership for such businesses must be less than 50%.
To ensure whether your planned business activity falls under any of the restricted categories or not, you can book a free consultation with one of our business advisors in Malaysia.
Key Requirements to Apply for a WRT License in Malaysia
Before applying for a WRT license in Malaysia, ensure your business meets the following criteria:
- Company Status: You must register your business with SSM Malaysia.
- Minimum Paid-Up Capital: of at least RM1 million (around USD 210,000) for foreign-owned companies. The minimum capital requirement for opening a hypermarket is RM50 million.
- Valid Tenancy Agreement: You need to have a valid tenancy agreement for your business premises
- Phone Line: Have a dedicated phone line for your business.
- Business Plan: You must submit a comprehensive business plan to KPDN if your business is new in Malaysia
Applying for a WRT License in Malaysia
The WRT license application process requires submitting a comprehensive set of documents to the Ministry of Domestic Trade and Consumer Affairs (MDTCA). Following are the main documents you need to provide for application submission:
- Completed WRT 1 form
- Company profile and business plan
- Certificate of incorporation
- Shareholding details
- Tenancy agreement
- Financial statements
After submission, the MDTCA reviews the application and conducts a premise inspection. If successful, they issue the WRT license which is valid for 2 years.
The WRT license application process can be complex and time-consuming, especially for foreign investors unfamiliar with Malaysian regulations and procedures. With that being said, It is advisable to seek expert guidance to ensure a smooth and successful application.
Emerhub’s team of experienced consultants specializes in helping foreign investors establish their businesses in Malaysia. We ensure that all documents are correctly prepared and submitted on your behalf and liaise with relevant authorities.
Fill out the form below to discuss your needs and planned activities in Malaysia with one of our experts.
