Many foreign-owned businesses register a company in Malaysia only to find that the company alone is not enough. Any business with foreign shareholding that is engaged in wholesale, retail or trading normally has to obtain a Wholesale, Retail and Trade (WRT) licence before it can operate lawfully, and it is also one of the preconditions for applying for work permits for foreign staff.
The WRT licence is approved by the Ministry of Domestic Trade and Cost of Living (KPDN) and governs foreign participation in distributive trade in Malaysia. Below we set out which businesses need one, the usual conditions for applying, and how it relates to employing foreign staff.
Which businesses need a WRT licence?
The WRT licence covers distributive trade activities. If a business has foreign shareholding and does any of the following, it normally has to apply:
- Wholesale and import/export: companies engaged in the wholesale, import or export of goods.
- Retail: physical or online retail, supermarkets, speciality stores and the like.
- Food and beverage: foreign-owned restaurants and restaurant chains.
- Franchising and agency: brand franchising, direct selling and agency distribution.
A company that is 100% locally owned generally does not need a WRT licence. Once there is foreign shareholding, Chinese shareholding included, you need to assess whether the business falls within distributive trade.
Conditions and common requirements
- Minimum paid-up capital: foreign-owned distributive trade businesses normally need a minimum paid-up capital (RM1 million is the common threshold) that has actually been paid in. The exact figure is subject to the latest KPDN rules.
- Business premises: you need a fixed business address with the tenancy agreement or proof of ownership. Some retail and food and beverage formats must also obtain a premises licence and a signboard licence from the local authority.
- Company documents: SSM registration documents, the company constitution, and director and shareholder details, with a nature of business that covers the relevant trading activities.
- Local participation: some formats carry conditions on local equity or the proportion of local employees, depending on the sector.
How GXY can help
We help foreign-owned businesses work out whether they need a WRT licence, clarify the paid-up capital and document requirements, prepare and submit the KPDN application, and coordinate related matters such as premises and work permits, so you have more certainty over your opening and hiring timelines.
This content is for general reference only and does not constitute legal or tax advice. For your own situation, please book a consultation and GXY's licensed advisory team will advise on the facts that apply to you. Reviewed by the GXY advisory team. Last updated: 5 July 2026.
