You’ve found the right location, your products are ready and you can already picture the shop sign going up. Then someone mentions a “WRT license”, and suddenly opening day feels a lot further away.
If you’re a foreign investor planning to sell goods in Malaysia, you’re not alone in feeling that way. We get this question from new clients almost every week, so we’ve put everything into one place. In this post, we walk you through how to apply WRT license for foreigners in Malaysia, from setting up your company to the day KPDN approves your licence, plus the mistakes we see most often.
In this article
First, what is a WRT license?
WRT stands for wholesale, retail and trade. It’s the approval a foreign-owned company needs from KPDN, the Ministry of Domestic Trade and Cost of Living, before it can buy and sell goods in Malaysia.
The rule of thumb is simple. If more than 50% of your company is owned by foreigners and you plan to sell physical products, whether in a shop, online, through a warehouse or as a franchise, you’ll need one. If you only provide services, a different approval usually applies.
It’s also one of the first approvals you’ll need. Your employment passes for foreign staff, for example, generally depend on it, so it pays to start early.
WRT license requirements for foreigners
Before you think about forms, it helps to know what KPDN is looking for. In our experience, the WRT license requirements for foreigners come down to three questions: is the company set up properly, does it have enough capital, and is the business real?
Capital is usually the big one. For most shops and trading companies, KPDN expects at least RM1 million in paid-up capital. Larger store formats need much more:
Minimum paid-up capital for foreign-owned companies
| Business type | Minimum capital |
|---|---|
| Most distributive trade, including specialty stores | RM1 million |
| Departmental store | RM20 million |
| Superstore | RM25 million |
| Hypermarket | RM50 million |
Based on KPDN’s Guidelines on Foreign Participation in the Distributive Trade Services. We confirm the latest figures before every application.
On top of the capital, KPDN will also expect you to:
- Trade through a Malaysian private limited company (Sdn Bhd) registered with SSM
- Have a real shop, office or warehouse, since virtual offices aren’t accepted
- Appoint Bumiputera director(s) to your board
- Hire Malaysians at all levels, including management
- Submit yearly financial reports to KPDN
Most founders are caught off guard by the Bumiputera director requirement, so it’s worth planning for it when you first set up the company rather than changing your board later.
How to apply WRT license for foreigners in Malaysia, step by step
Here’s the part most people are waiting for. The good news is that the application itself is done online. The work is in getting everything ready before you press submit.
1. Check that your business is open to foreigners
Some types of business are reserved for Malaysians (more on that below). Check this before you spend anything, because no amount of paperwork will get a restricted business approved.
2. Set up your Sdn Bhd
Register a private limited company with SSM. This usually takes one to two weeks. You’ll also need a licensed company secretary within 30 days of incorporation, and this is a good moment to appoint your Bumiputera director.
3. Put the capital in
Once the company bank account is open, transfer the required capital and record the share allotment with SSM. KPDN will want proof, such as a bank statement or a letter from your auditor.
4. Secure your premises
Sign the tenancy for your shop, office or warehouse. Before you commit, check that the location can get a local council business premise license, as you’ll need that too.
5. Register for tax and EPF
Open the company’s tax file with LHDN and register with EPF. KPDN asks for these records as part of the application.
6. Submit your application online
With everything in hand, the application goes to KPDN online (commonly through the BLESS portal). Reply quickly if KPDN comes back with questions, because slow replies are a common cause of delays.
7. Get ready for an inspection
KPDN may visit your premises to check that the business is genuine. Approval typically arrives about two to three months after a complete application, and your licence will be valid for one to three years.
Good to know: once your WRT license is approved, you can move on to your signboard licence and any employment passes for foreign staff. When it’s close to expiring, start your WRT license renewal about three months ahead.
What to prepare
KPDN publishes its own checklist, and the exact list depends on your business. When clients ask us how to apply WRT license for foreigners in Malaysia, this is the list we hand them first:
- The completed WRT application form
- Your SSM certificate, company information and register of members
- Proof of paid-up capital
- LHDN tax and EPF registration
- A business plan and company profile
- Your tenancy agreement, premises photos and a floor plan
- A product catalogue (and for F&B, your menu and head chef details)
Of all of these, the business plan deserves the most care. KPDN wants to understand what you’ll sell, who you’ll sell to and how the business will run, so a one-page summary rarely does the job.
Businesses you can’t run as a foreigner
This is the part that changes plans. Some business formats are kept for Malaysian companies, so KPDN won’t issue a WRT license to a foreign-owned company for them. These include supermarkets and mini markets, provision and sundry shops, convenience stores, petrol stations, medical halls, jewellery shops, textile shops, non-specialty restaurants, and wet markets and pavement stalls.
The list is set by KPDN and can change. If your idea falls into one of these, the usual route is a joint venture where a Malaysian partner holds the majority. Also keep in mind that products like food, cosmetics and medical devices may need approval from other agencies on top of your WRT license.
Mistakes that slow things down
Most delays we see aren’t caused by anything complicated. They come from a handful of avoidable slips:
- Using a virtual office. KPDN needs a real premises it can visit.
- Capital that isn’t fully paid up. It has to be in the account and recorded with SSM before you apply.
- Choosing a restricted business. Always check the list first.
- A thin business plan. Give KPDN a clear picture of how the business will work.
- Forgetting the Bumiputera director. It’s one of the WRT license requirements for foreigners that’s easiest to fix at the start.
Final thoughts
Learning how to apply WRT license for foreigners in Malaysia can feel like a lot at first, but it follows a clear order: check your business is allowed, set up the company, put the capital in, secure your premises, then apply. Get those foundations right and the approval itself is usually straightforward.
If you’d rather spend your time on suppliers and opening day, our team can handle the whole process for you, from incorporation to KPDN approval. Take a look at our WRT license Malaysia service to see how we help.
