WRT (Wholesale–Retail Trade) License Application — Malaysia

1) Who needs a WRT license? (Types of businesses)

Foreign-owned companies (see definition below) that operate in distributive trade must obtain approval from the Ministry of Domestic Trade & Cost of Living (KPDN). Distributive trade covers both wholesale and retail channels, including electronic transactions. Typical business types include:

  • Retailers & wholesalers (physical stores, showrooms, specialty shops, department/convenience stores)
  • Importers / exporters / distributors / trading companies (including international trading companies serving the domestic market)
  • E-commerce / online businesses selling to Malaysian customers
  • Franchise franchisors & franchisees, direct selling operators
  • Commission agents / representatives channelling goods into the domestic market

The following businesses are excluded from the definition of distributive trade:

  • Manufacturing companies; and
  • Companies granted the status of regional establishments by the Malaysian Investment Development Authority (MIDA).

KPDN’s guideline explicitly lists distributive traders to include wholesalers, retailers, franchise practitioners, direct sellers, suppliers who channel goods in the domestic market, online businesses, and commission agents.

Foreign-owned company (for WRT purposes): a structure where non-Malaysians (including PR) and/or foreign entities hold more than 50% of voting rights.

Note: Some formats are not open to foreign ownership (non-exhaustive): supermarket/mini-market, provision shops (DBKL), permanent wet market / pavement stores, fuel stations, certain non-exclusive textile.

2) Core requirements (at a glance)

Topic What KPDN looks for
Legal scope Activities fall within distributive trade (wholesale/retail, including online).
Who must apply Foreign business operators (>50% foreign voting rights).
Paid-up Capital Min RM 1 million
When to apply Prior to commencing operation (approval is encouraged and recommended under the Guidelines).
Validity / renewal Approvals are generally valid for 3 years and renewable; failure to comply can lead to rejection of branch applications or revocation.

 

Typical supporting documents

  • SSM incorporation documents, shareholding details,
  • Company profile / business plan,
  • Tenancy agreement / S&P of premises,
  • Financials Audited Report,
  • Photos / floor plan of premises / warehouse,
  • Product list / catalogue;
  • F&B food menu and staff qualifications,
  • And others ….

3) Why foreign-owned companies need WRT

  • Policy compliance & market order

The Guideline’s objectives are to ensure an orderly, fair development of the wholesale/retail industry, modernize the sector, and increase Bumiputera/Malay participation. Approval is recommended before operation.

  • Regulatory consequences

KPDN may reject new branch applications or revoke approvals for non-compliance; approvals are time-bound and must be renewed.

  • Practical dependencies

For companies in distributive trade, WRT documentation is commonly requested by immigration platforms (ESD / MyXpats) when seeking expatriate posts, and referenced in their notices for “unregulated services” under KPDN.

4) Process flow — WRT license and Town Council (PBT) license

  1. Pre-setup
  1. Incorporate a Sdn. Bhd. with SSM and define business activities (trading/retail).
  2. Secure a commercial premise (Tenancy agreement / S&P).
  3. Prepare premise photos and layout / floor plan.
  1. Apply for WRT (KPDN)
  1. Submit Application for the Establishment of Distributive Trade in Malaysia with all the required documents.
  2. Monitor and response to the queries / clarifications from KPDN’s Distributive Trade Committee Secretariat.
  3. Receive approval letter (validity typically 3 years).
  1. Apply for Local Authority (PBT) licenses — Business Premise & Signboard

Every physical outlet needs a Business Premise (and commonly, Signboard) license from the local council (DBKL, MBPJ, MBSJ, MBSA, MBDK, MPAJ, MPKj, MPS and etc.). Requirements and inspections vary by council and sector (e.g., Health Dept for F&B, Fire safety, signage language rules).

  1. Identify your council (PBT) based on the premise address.
  2. Prepare PBT pack: SSM docs, WRT approval (if requested), tenancy agreement / S&P, layout plan, photos, fire / health clearances where applicable, proposed signboard artwork.
  3. Submit application and complete any inspections and rectify remarks.
  4. Collect / display the Business Premise and Signboard licenses at the outlet.
  1. Post-approval compliance
  • Keep approvals current (WRT renewal, PBT annual renewals). KPDN can reject branch expansion or revoke approval for non-compliance; renew before expiry.
  • Report changes (shareholding, address, directors, signage) to the relevant authorities.

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