A Foreigner’s Guide to WRT License in Malaysia: Fees & Process

A Wholesale Retail Trade (WRT) License is a mandatory approval from Malaysia’s Ministry of Domestic Trade and Cost of Living (KPDN) for foreign-owned companies engaged in retail, wholesale, or distributive trade activities.

Think of the WRT license as your “permission slip” to play in Malaysia’s retail football match, except the referee is KPDN, and flaunting the rules is a red card. 

Many foreign investors underestimate this step, only to face delays that cost both time, money and time.

Today, PRESS PR agency Malaysia will show exactly who needs a WRT license, the step-by-step application process, required documents and how to stay compliant, let’s get to it.

What Is a WRT License in Malaysia?

A Wholesale Retail Trade (WRT) License is an official approval from KPDN, required for foreign-owned companies operating in the distributive trade sector.

It is governed by the Guidelines on Foreign Participation in Distributive Trade Services, covering activities such as:

• Retail and wholesale operations
• Import and export businesses
• Franchise businesses
• Distributive trade in physical or online channels

Without this license, foreign companies cannot legally operate in these sectors in Malaysia.

Who Needs a WRT License in Malaysia?

If you’re a foreign-owned company (more than 50% foreign equity) and you’re doing business in Malaysia’s distributive trade sector, chances are you need a WRT license. 

You’ll need one if you:

• Hold over 50% foreign equity in your company.
• Operate in retail or wholesale trade, including physical stores and online shops.
• Import or export goods for commercial purposes.
• Run a franchise or other distributive trade business.

Yes, even online counts. Under KPDN’s guidelines, eCommerce platforms with foreign equity must get a WRT license if they sell directly to Malaysian consumers. That means whether you’re shipping coffee beans or iphone cases, the rules still apply.

WRT License vs Business Registration vs Trading License

There are many types of business and operating licences in Malaysia, so learning what each one actually does will save you time, money, and paperwork headaches. Here’s how they differ at a glance:

KPDN clarifies: “All foreign participants must obtain WRT approval before commencing business operations in the distributive trade sector.”

To avoid confusion:

• SSM registration gets your business legally recognised.
• WRT license is for foreign-owned distributive trade businesses.
• Local trading licence lets you operate from a physical premise.

Other Common Business Licences in Malaysia

Depending on your sector, you may need extra approvals on top of your SSM registration, WRT licence, or local trading licence:

Looks quite a lot, but rest assured, you only need the license from respective departments if your business is related to it.

For example, a foreign-owned restaurant chain selling food to predominantly Malay customers might need SSM registration + WRT licence + F&B premise licence + Halal certification before opening its doors.

WRT License Requirements 

According to KPDN, to qualify for a WRT Licence, applicants must meet the following:

• Minimum Paid-Up Capital: At least RM1 million for foreign-owned companies.
• Valid SSM Registration: Company registered with the Companies Commission of Malaysia (SSM) using distributive trade MSIC codes.
• Approved Business Premises: Location must comply with local council zoning and safety regulations.

Documents Needed for WRT License Application

Per KPDN’s official checklist, you will need:

• SSM Incorporation Forms: Form 9, Form 24, and Form 49.
• Director Identification: NRIC or passport copies for all directors.
• Premise Documents: Tenancy agreement or property ownership proof.
• Premise Evidence: Photographs and a floor plan.
• Paid-Up Capital Proof: Bank statement or letter from auditor confirming RM1 million capital.
• Sector-Specific Approvals: Where relevant, such as Halal (JAKIM), Ministry of Health (MOH), or Department of Environment (DOE).

Read more: Withholding Tax Malaysia 2025: What It Is, When It Applies & How to File It Right

How to Apply for a WRT License (Step-by-Step)

1. Check Eligibility

• Foreign-owned companies (with 51% or more foreign equity) involved in distributive trade require a WRT licence.

“Foreign‑owned companies (foreign equity at 51% and above) operating in the Wholesale, Retail and Trade (WRT) sectors” must have a valid WRT approval.”

• Companies with ≥51% Malaysian ownership may be exempt from this requirement.

2. Prepare Required Documents

Must-have documents include:

• WRT 1 application form, company profile or business plan, certified SSM documents (Form 9, 24, 49), IRB confirmation, EPF registration or latest statements.
• Also prepare: premises tenancy or ownership docs, local authority licence (if applicable), audited financials, photos, product catalogues, and for restaurants: menu, chef credentials, and premise photos.

3. Submit Your Application

• Submit via the BLESS online portal, Malaysia’s official business license system.

4. Inspection (if required)

• KPDN may conduct an on‑site verification to ensure compliance with local authority regulations and premises suitability. While official guidelines don’t always specify inspections, they’re commonly part of the process.

5. Processing & Cost

• No application fee is currently imposed for WRT licenses.
  
  “KPDN, the government agency overseeing WRT licenses, currently does not impose a license fee.”
• The typical processing time is 2–3 months.

6. Approval & Validity

• Once approved, the WRT license generally remains valid for 2 years (sometimes up to 3 years).
• Renewal must be completed 3 months before expiry.

WRT License Application Process

Penalties for Operating Without a WRT License

If your business is required to have a WRT License but operates without one, KPDN can and will take strict enforcement action under the Control of Supplies Act 1961 and related trade regulations.

1. Monetary Fines

• First offence: Fines typically range from RM2,000 to RM5,000 per offence, depending on the severity and duration of the breach.
• Repeat offences: Heavier penalties may be imposed, including higher fines or compounding limits.

KPDN has the authority to issue compounds or initiate court proceedings for each offence committed. So, don’t ignore this.

2. Business Closure Orders

• Temporary closure: Authorities may issue a stop-work or closure notice until you obtain the proper licence.
• Permanent closure: In serious or repeated violations, your business licence with the local authority can be revoked entirely.

3. Seizure of Goods and Equipment

• KPDN enforcement officers may confiscate stock, machinery, and equipment linked to unlicensed operations.
• Goods may be held until the case is resolved or permanently forfeited if found in violation.

4. Court Action

• Repeat offenders can face prosecution in court, with possible heavier fines and injunctions to cease trading.
• Convictions can affect your eligibility for future business or import/export licences.

Read more: How to Apply for a Tourist Guide Licence in Malaysia

Conclusion: WRT License Is Mandatory For Foreigners

KPDN’s guidelines make it clear: if you are a foreign-owned business in Malaysia’s distributive trade sector, a WRT license is not optional. 

Prepare your application thoroughly, ensure compliance with capital and documentation requirements, and renew on time to keep your operations legal and uninterrupted in 2025.