My Employment Pass

Wholesale, Retail, and Trade (WRT) licenses are issued by the Malaysian Ministry of Domestic Trade and required for all foreign-owned businesses in Malaysia operating within distributive trade businesses.

This guide covers key aspects of WRT licenses for foreign businesses, including:

1. objectives of WRT licenses
2. types of businesses requiring WRT Licenses
3. general and specific requirements
4. required documents
5. the application process, including time and cost estimates
6. a warning that you might not need a WRT license

Let’s begin.

WRT license objectives

Understanding the purpose behind WRT licenses can provide a more intuitive understanding of how to navigate the application process. In general, WRT licenses are meant to carefully align foreign business participation in Malaysian trade with three goals.

• create a conducive environment that encourages healthy competition among industry players
• encourage the thoughtful use of technology for streamlined workflows, logistics and resource usage
• protect local businesses and entrepreneurs from being outcompeted

Applicants therefore stand a better chance of obtaining a WRT license if the foreign-owned business can add value to Malaysian industry without threatening local enterprises.

Businesses that need a WRT license

KPDN defines distributive trade as:

‘…trade which comprises all linkage activities that channel goods and services from the supply chains to intermediaries for the purpose of resale or to the final buyers’.

Essentially, any foreign-owned business involved in selling products or services to end consumers likely falls under distributive trade, and some of the most common sectors that we have assisted with include:

1. F&B outlets
2. Consultancies
3. Retail stores of various sizes, and
4. Foreign franchises

Those interested can check out this official document which goes into full detail.

General requirements

No matter the industry, business applying for a WRT license must:

• be incorporated in compliance with the Company Act 2016, and
• have a minimum paid-up capital of RM1,000,000
• have already received other operating licenses, namely PBT premise and signboard approval

Specific requirements for F&B

In addition to general requirements, foreign F&B ventures must provide the following information:

• a full menu
• photos of the premises / products
• documents certifying the chef’s or employee’s qualification and experience, and

Ideally, these supporting documents show your business features unique cousine not from Malaysia so it will not be in direct competition with local food operations.

How WRT licenses affect Employment Pass applications

Companies must meet a minimum paid-up capital threshold of RM250,000 – RM500,000 based on their percentage of foreign ownership:

• 100% local owned: RM250,000
• Joint venture (minimum 30% foreign equity): RM350,000
• 100% foreign-owned: RM500,000

However, if the venture will need a WRT license, the effective paid-up capital requirement doubles to at least RM1 million, which is something foreign businesses should keep in mind.

Let MISHU handle your WRT license application

If you are a foreign business planning to set up retail or wholesale operations in Malaysia, consider our professional WRT license application services for full support with regulatory approvals, licensing, and compliance requirements to help you begin operations smoothly and efficiently.