A foreign-owned company planning to engage in distributive trade activities in Malaysia needs to get a Wholesale Retail Trade (WRT) license. A business is considered to be foreign-owned if non-Malaysians possess more than 50% of its total shares.
The Ministry of Domestic Trade, Cooperatives and Consumerism (MDTCC) or the Kementerian Perdagangan Dalam Negeri dan Hal Ehwal Pengguna (KPDNHEP) grants approval for the WRT license Malaysia.
Refer to our guide Malaysia company incorporation if you are a foreigner looking to establish your new business in Malaysia.
DISTRIBUTIVE TRADE
All linking operations that move products and services down the supply chain to middlemen for resale or to final consumers are categorized as distributive commerce. These connections might be direct or indirect within the supply chain, real physical operations, in-person or electronic transactions. In short, it includes a broad range of trade.
In Malaysia, WRT licenses are often granted to the following 4 categories of distributive trades:
Retail, Trading (Import and Export), Distributive Trades
Restaurant Wholesale Retail Trade WRT License in Malaysia
Franchise Business
Services and Consultancy
OBJECTIVE OF WRT LICENSES IN MALAYSIA
Advancing the industry in Malaysia – The objective is to foster an atmosphere that supports healthy competition among market participants while discouraging monopolistic market activities.
Encourage modernization – The standards for WRT licenses promote thoughtful implementation of technology for improved workflows, logistics, and resource management.
Managing both international and domestic participation – The goal of controlling foreign participation is to safeguard local businesses and entrepreneurs from being exploited.
WHICH BUSINESSES NEED A WRT LICENSE?
The company falls under distributive trade if it deals with delivering goods and services to customers.
Retail stores of various sizes (hypermarkets, department stores, etc.)
F&B establishments
Consultancies
REQUIREMENTS FOR WRT LICENSE MALAYSIA
2 stockholders, regardless of nationality
Address of the local company secretary and registered office
A minimum of RM1,000,000 in paid-up capital
One native Malaysian director
DOCUMENTS REQUIRED FOR WRT LICENSE APPLICATION IN MALAYSIA
ESSENTIAL DOCUMENTS:
A completed WRT 1 application form;
A business plan or company profile;
A copy of the Section 58 form, which is a notification of change form for the register of directors, managers, and secretaries;
If there is a transfer of shares or a change in directors, a stamped copy of the Section 32A form;
A copy of the letter of confirmation of registration from the Malaysian Inland Revenue Board (IRB)/Lembaga Hasil Dalam Negeri (LHDN).
NON-MANDATORY DOCUMENTS (UNLESS APPLICABLE):
A copy of the appropriate and current license(s) that the local authority has issued;
A certified copy of the lease or purchase contract for the commercial property;
Copies of the most recent five (5) years’ worth of audited financial statements;
A copy of any licenses or letters of approval issued by the business’s relevant ministries, departments, or agencies;
A copy of the most recent three months’ worth of delivery orders, purchase orders, airway bills, bills of lading, and sales invoices.
ADDITIONAL DOCUMENTS (FOR RESTAURANTS)
A copy of the restaurant’s menu
A copy of a document attesting to the chef’s or employee’s academic or professional credentials, their experience working in the food and beverage industry (minimum of three years), or
Proof that the business operated a restaurant in its home country or other nations in the past.
Photographs documenting the restaurant’s products and the company premise(s).
APPLICATION PROCESS FOR WRT LICENSE MALAYSIA
Malaysia’s online business license application portal is called BLESS. Go to the registration page by entering https://www.bless.gov.my/ into the computer browser.
By entering the necessary data, including the name, contact information, and email address, the applicant can create an account on the BLESS site.
After logging into the BLESS account, the applicant must browse the list of licenses and choose the WRT license suitable for the business activities.
Fill out the license application form accurately. This can contain information regarding the firm, its operations, shareholders, directors, and any additional relevant information that the application form may have asked for. After ensuring the accuracy of the provided information, electronically submit the application using the BLESS site.
After that, the applicant must pay the required fee. The WRT license cost is usually RM4850. It might take 1-3 months for the application to get approved. The WRT license is valid for a period of 2 years.
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