Application for the Establishment of Distributive Trade in Wholesale & Retail Trade (WRT) Sector - WRT in Malaysia

WRT License Application in Malaysia

The Wholesale & Retail Trade (WRT) License in Malaysia is a crucial requirement for foreign-owned companies looking to establish or operate within the distributive trade sector. This license is issued by the Ministry of Domestic Trade and Cost of Living (KPDN), formerly known as the Ministry of Domestic Trade and Consumer Affairs (MDTCA).

Here's a breakdown of the application process and key considerations:

1. Who Needs a WRT License?

• Foreign-owned companies: This is the primary target. A business is considered foreign-owned if non-Malaysians hold more than 50% of its total shares.

• Sectors covered: The WRT license applies to a wide range of distributive trade activities, including:

  • Retail stores (hypermarkets, departmental stores, specialty stores)

  • Wholesale distributors

  • Trading (import and export)

  • Restaurant and F&B establishments (if foreign-owned)

  • Franchise businesses (if foreign-owned)

  • Certain service and consultancy sectors related to distributive trade.

• Exemption: Companies with at least 51% Malaysian ownership may be exempted from applying for a WRT license and its stringent paid-up capital requirements.

2. Key Requirements for WRT License Application:

• Company Incorporation: The business must be incorporated in Malaysia under the Companies Act 2016.

• Malaysian Director: The company must have at least one director who is 18 years old and living in Malaysia (local director).

• Minimum Paid-Up Capital: For foreign-owned companies, a minimum paid-up capital of RM1,000,000 is generally required. Specific sub-sectors like hypermarkets may have higher requirements (e.g., RM50 million).

• Business Premises: You must have a valid tenancy agreement or property ownership documents for your business premises (office, warehouse, or retail outlet). KPDN will often conduct a site inspection as part of the approval process.

• Local Authorities Approval: The business must have already received approval from local authorities to operate (e.g., Business Premises License, Signboard License).

• Financial Compliance: Registration with the Inland Revenue Board of Malaysia (LHDN) for Corporate Tax and potentially Sales & Service Tax (SST) if annual revenue exceeds RM500,000. Proof of EPF registration for employees.

• Business Plan: A comprehensive business plan is usually required, especially for newly established companies, to demonstrate operational capacity and investment plans.

3. Required Documents (Commonly Requested):

• Completed WRT 1 application form.

• Company profile/Business Plan.

• Certified copies of the Certificate of Incorporation from SSM (Form 9 or equivalent, and other relevant SSM forms like Form 24, Form 49, Section 58, Section 32A if applicable).

• Proof of business premises (tenancy agreement or sale & purchase agreement, stamped).

• Copies of latest 3 years audited financial statements (if applicable).

• Copy of IRB's tax registration confirmation letter (for new companies) or confirmation of e-C submission (for existing companies).

• Proof of EPF registration (for new companies) or latest 3 months EPF statement (for existing companies).

• Copy of valid license(s) by the Local Authorities (Business Premises License, Signboard License).

• Copies of licenses/approval letters from relevant authorities for specific products (e.g., Drug Control Authority for medicinal products, Energy Commission/SIRIM for electrical products).

• Copies of 3 transactions for each month of the latest 3 months (e.g., Custom department K1/K2, Airway Bill/Bill of Lading, Delivery Orders, Purchase Orders, Sales Invoices).

• Information on foreign workers/expatriates.

• Color photographs of the premises/warehouse/office.

• Product catalog/sample.

• For Restaurants (additional documents): Copy of the restaurant's menu, proof of chef/employee qualifications and experience (minimum 3 years in F&B), proof of operating a restaurant in home country/other nations, photographs of products and premises.

4. Application Process:

• Online Application: The application for the WRT license is typically submitted through the BLESS portal (Business Licensing Electronic Support System) at bless.gov.my. You will need to create an account.

• Submission: Fill out the online application form accurately and upload all required documents.

• Fees: The WRT license cost can vary, RM3,000 to RM4,850.

• Processing Time: The approval process usually takes 1 to 3 months, with extended durations if a site inspection is required.

• Validity: A WRT license is generally valid for 2 years. Renewal applications should be submitted 3 months prior to expiration.

• Site Inspection: KPDN officers may conduct a site visit to verify compliance with safety and operational standards.

Important Notes:

• The WRT license aims to regulate foreign participation in the distributive trade sector to ensure fair development and encourage modernization while safeguarding local businesses.

• If your company has foreign ownership and plans to hire expatriates, the WRT license is a prerequisite for applying for work permits at the Immigration Department.

• It is highly advisable to seek professional guidance from consultants or legal firms specializing in Malaysian business regulations to ensure a smooth and successful application process, especially for foreign investors unfamiliar with the local procedures.

For the most up-to-date and specific information, always refer to the official website of the Ministry of Domestic Trade and Cost of Living (KPDN) at www.kpdn.gov.my and the BLESS portal.