If you are a foreigner who wants to setup a business in Malaysia that is involved in distributive trade services, you will be required to have a Wholesale Retail Trade (WRT) license. This guide will take a look at the setting up a service and consultancy business in Malaysia and how to apply for the necessary WRT license involved.
Companies in Malaysia must be incorporated through the Companies Commission of Malaysia (SSM). This includes all types of business entities, such as private limited companies, sole proprietorship, general partnership, limited liability companies and more. While the incorporation process in Malaysia goes through the SSM, the required licenses applicable is issued by other local authorities. Such as with the WRT license application for example.
The WRT License is issued by the Ministry of Domestic Trade, Cooperatives and Consumerism (MDTCC). In local Malay language, they are referred to as the Kementerian Perdagangan Dalam Negeri dan Hal Ehwal Pengguna (KPDNHEP).
What Is Defined as Distributive Trade?
A company that is involved in distributive trade is a company which is involved in activities that channel goods and services down the supply chain. These products are pass along to their intermediaries for resale purposes, or to the final buyers. This process could involve either an actual physical process of distributing these goods, through an individual, an electronic transaction and either through a direct or
There are generally four main categories in which a WRT License is involved in Malaysia:
- Services & Consultancy
- Restaurant Businesses
- Retail, Distributive Trade, Import and Export Trading
What Is a Service and Consultancy Business in Malaysia?
There’s certainly demand for a service and consultancy business in Malaysia. As a thriving international business hub, Malaysia is home to business from all sorts industries. Therefore, there is a demand for those who can offer their expertise in certain sectors or industries. Because foreign ownership of a Malaysian company is allowed, many foreigners are keen to set up a business, such a consultancy services business for example. However, despite the 100% foreign ownership, you will be required to hire a Company Secretary who must be a resident in Malaysia.
There’s no shortage on the types of businesses you can venture into in Malaysia.
Service and consultancy businesses in Malaysia range from advertising, accounting, law, marketing, company management, human resources, management consulting
and more. To start a business in Malaysia, especially in the service and consultancy sector, means acquiring a WRT license.
Why Do I Need A WRT License?
A WRT License in Malaysia is required for the following purposes:
- Regulate the foreign participation in Malaysia’s distributive trade sector.
- Maintain orderly and fair development of the distributive trade industry
- To ensure the growth of the local businesses
- To help encourage efficiency on the distributive trade industry
- To ensure the continued contribution to the growth of Malaysia’s economy
WRT License Requirements for A Services & Consultancy Business
The Companies Act 2016 in Malaysia has mandated the requirements which must be followed by businesses here in Malaysia. To be eligible for a WRT license, you must ensure that your business meets the following requirements:
- WRT application form (filled and completed)
- Copy of form Section 58 (notifying change of directors, managers or secretaries)
- Copy of form Section 32A which must be stamped (notifying change in directors or transfer of shares)
- Copy of Inland Revenue Board of Malaysia (LHDN)’s confirmation letter
- Business profile of your company
- Business plan of your company (if you don’t have a business profile yet)
- Copy of relevant licenses issued by local authorities
- Copy of stamped tenancy agreement. If you don’t have this, you may provide a copy of the sale and purchase agreement of the business premise.
- Copies of your financial statements over the last 5 years which have been audited (if applicable)
- Any copies of your airway bills, customs clearance documentation, delivery orders, bill of lading, sales invoices or purchase orders (if applicable)
All foreign distributive traders in Malaysia must have a valid WRT license which has been approved before they apply for a Malaysian work permit. Work permits in Malaysia are lodged with the Immigration Department. If you intend to hire local Malaysians, you must be registered with the Employees Provident Fund (EPF) and SOCSO.
Paul Hype Page & Co – SSM service provider and Asean Chartered Accountant.
Paul Hype Page & Co. have 3 physical offices in Singapore, Malaysia and Indonesia
Our Firm Goal is to assist Foreigner and Foreign Companies to set up business in Asean.
How we can help you:
We will call you back, please click below link and make appointment with our Sales consultant:
Step 1- Listen to your Business plan and Relocation needs.
Step 2- Analysis your Malaysia Tax Planning
Step 3- Recommend the most suited type of Company Incorporation, Open Bank account and Work Visa
Step 4- Arrange for your Spouse and Children Visa
Step 5- Assist as your company to hire staffs and handle all HR matters
Step 6- Every financial year end, we assist you with your yearly SSM Finanical and Tax Compliance
Step 7- Assist you to expand business to Malaysia, Indonesia, Vietnam and Thailand.
Get in Touch with Us Today.
Paul Hype Page