WRT LICENSE MALAYSIA

WRT Licence for foreigned owned company in Malaysia

Introduction to WRT

Wholesale, Retail, and Trade (WRT) licenses are issued by the Malaysian Ministry of Domestic Trade, known as  Kementerian Perdagangan Dalam Negeri (KPDN), for foreign-owned businesses in Malaysia operating within distributive trade businesses.

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 objectives of WRT licenses

1. Elevating Malaysian industry
The aim is to create a conducive environment that encourages healthy competition among industry players while preventing monopolistic market practices.

2. Encouraging modernisation
The requirements underpinning WRT licenses encourage the thoughtful use of technology for streamlined workflows, logistics and resource usage.

3. Balancing foreign and local participation
The purpose of regulating foreign participation is, like it or not, to protect local businesses and entrepreneurs from being outcompeted.

 

Which Businesses Need to apply WRT Licence ?

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 & Services
  • Franchise Business

General Requirements For WRT Licence in Malaysia

The business applying for a WRT license must be:

  • A Company incorporated in Malaysia under Companies Act 2016.
  • The company must has a director who is at least 18 years old and living in Malaysia (local director)
  • the foreign-owned business must have a minimum paid-up capital of RM1,000,000.

Aside from that, the business must have already received approval from the local authorities to operate (you might need to show documentation proof).

Document Required For WRT Licence Application

Mandatory document:

  • 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 applicable);
  • If there is a transfer of shares or a change in directors, a stamped copy of the transfer form (If applicable);
  • A copy of the letter of confirmation of registration from the Malaysian Inland Revenue Board (IRB)/Lembaga Hasil Dalam Negeri (LHDN).
  • Employee Provident Fund:
    1. Proof of registration for new companies.
    2. 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

Additional Document (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).

The WRT license application process

Once you have all the necessary documents, the application process is straightforward enough.

  1. Malaysia’s online business license application portal is called BLESS. Go to the registration page by entering https://www.bless.gov.my/
  2. sign up for an account
  3. select the license you’d like to apply for
  4. fill up and submit your license application
  5. pay the required fee

The application period will take 1 – 2 months, and upon approval, the license is valid for a period of 2 years.

Frequent Asked Question: Any way to exempt from applying WRT?

You might need to consider to restructure your company to be  51% local owned company. A corporation with at least 51% Malaysian ownership may be exempted from applying for a WRT license because WRT licenses typically apply to foreign-owned businesses. The business is also exempted from having to meet stringent paid-up capital requirements due to this.

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