A Complete Guide To WRT License Applications In Malaysia
Wholesale, Retail, and Trade (WRT) licenses are issued by the Malaysian Ministry of Domestic Trade and required for all foreign-owned businesses in Malaysia operating within distributive trade businesses.
This guide covers key aspects of WRT licenses for foreign businesses, including:
- objectives of WRT licenses
- types of businesses requiring WRT Licenses
- general and specific requirements
- required documents
- the application process, including time and cost estimates
- a warning that you might not need a WRT license
Let’s begin.
WRT license objectives
Understanding the purpose behind WRT licenses can provide a more intuitive understanding of how to navigate the application process. In general, WRT licenses are meant to carefully align foreign business participation in Malaysian trade with three goals.
Elevate Malaysian industry
The aim is to create a conducive environment that encourages healthy competition among industry players while preventing monopolistic market practices.
Encourage modernisation
The requirements underpinning WRT licenses encourage the thoughtful use of technology for streamlined workflows, logistics and resource usage.
Balance foreign and local participation
The purpose of regulating foreign participation is, like it or not, to protect local businesses and entrepreneurs from being outcompeted.
Applicants therefore stand a better chance of obtaining a WRT license if the foreign-owned business can add value to Malaysian industry without threatening local enterprises.
Businesses that need a WRT license
KPDN defines distributive trade as:
‘…trade which comprises all linkage activities that channel goods and services from the supply chains to intermediaries for the purpose of resale or to the final buyers’.
Essentially, any foreign-owned business involved in selling products or services to end consumers likely falls under distributive trade, and some of the most common sectors that we have assisted with include:
- F&B outlets
- Consultancies
- Retail stores of various sizes, and
- Foreign franchises
Those interested can check out this official document which goes into full detail.
General requirements
No matter the industry, business applying for a WRT license must:
- be incorporated in compliance with the Company Act 2016, and
- have a minimum paid-up capital of RM1,000,000
- have already received other operating licenses, namely PBT premise and signboard approval
Specific requirements for F&B
In addition to general requirements, foreign F&B ventures must provide the following information:
- a full menu
- photos of the premises / products
- documents certifying the chef’s or employee’s qualification and experience, and
Ideally, these supporting documents show your business features unique cousine not from Malaysia so it will not be in direct competition with local food operations.
We go into greater detail for restaurants and other sectors in our deep dive into WRT license requirements.
Required documents
You can download an official checklist of the required documents on KPDN’s website, but for your convenience here’s what you’ll need to prepare.
Mandatory documents:
- Completed WRT 1 form.
- Company profile / Business Plan
- Certified copies of the Registration of Company and Form 49
- Stamped copies of Form 32A, if there have been changes in shareholding
- Inland Revenue Board:
- Copy of IRB’s tax registration confirmation letter for newly operating companies
- Copy of IRB’s confirmation of submission e-C for companies already in operation
- Employee Provident Fund:
- Proof of registration for new companies.
- Latest 3 months EPF statement for existing companies.
Additional documents:
- Copy of valid license by the Local Authorities
- Copy of tenancy / sale & purchase agreement for the premises
- Singed copies of the latest 3 years audited financial statements
- (If applicable) Copies of licenses from relevant authorities
- Copies of documents for 3 transactions per month over the last 3 months
- Information on foreign workers / expatriates
- Colour photographs of the premises / warehouse / office
- Product catalog / sample
If you would like help with any item on the list, get in touch and we’d be happy to help!
Application process
Once you have all the necessary documents, the application process is straightforward enough.
- go to BLESS, Malaysia’s online business license application portal
- sign up for an account
- select the license you’d like to apply for
- fill up and submit your license application
- pay the required fee
The application takes two to three months to process, and upon approval, KPDN grants a license valid for one to three years after accessing the applicant’s:
- financial performance
- tax payment to government, and
- technology transfer / sharing
As KPDN doesn’t have an application fee for WRT licenses, in theory businesses are free to apply themselves, but as this is almost exclusively applied for by foreign businesses, third-party service providers are common.
USS licenses
Just a heads up that you may need an Unregulated Services Sector (USS) license instead.
Both USS and WRT licenses apply to foreign-owned companies operating in Malaysia but:
- WRT licenses are for trading businesses, while
- USS licenses are for service-based companies
If a business does both trading and service-based activities, it still only needs one license which will be based on where most of its revenue comes from.
Application processes and approval time are the same for both, but if you apply for the wrong one, it will likely get rejected and you’ll have to go through the whole application process again.
As the USS is much less-known, we wanted to bring this to your attention 😊
Let MISHU handle your WRT license application
If you are a foreign business planning to set up retail or wholesale operations in Malaysia, consider our professional WRT license application services for full support with regulatory approvals, licensing, and compliance requirements to help you begin operations smoothly and efficiently.
