Wholesale and Retail Trade

How can I start a trading company in Malaysia? Incorporating a Distributive Trade Company (Wholesaler, Retailer, and International Trading Company)

Guidelines on Foreign Participation in Wholesale and Retail Trade (WRT)

Guidelines On Foreign Participation In The Distributive Trade Services Malaysia

Distributive trade include wholesaler, retail, and international trading.

Licensing and Registration

For any foreign involvement in these activities, the minimum capital requirement in terms of shareholders’ funds, which include paid-up capital and reserves is RM1 million.

Application for the Establishment of Distributive Trade in Malaysia

1. Name Of Company And Establishment

2. Address And Location Of Establishment (Established / Proposed)

3. Date Of Incorporation In Malaysia

4. Co. Registration No. / My CoID

5. Date Of Commencing Business

6. Type Of Distributive Trade

7. Type Of Establishment: a Headquarter / a Branch / others:

8. Total Sales Floor Area Of Business Premise (Square Meters)

9. Name And Address Of Parent Company / Headquarters (If Applicable)

10. Share Capital

Authorized: No. Of Shares, Par Value (RM), Amount (RM)

Issued And Paid-Up: No. Of Shares, Par Value (RM), Amount (RM)

11. Equity Structure

Malaysian Bumiputera: Name Of Company / Individual, Nationality, %

Malaysian Non-Bumiputera: Name Of Company / Individual, Nationality, %

Foreign:

12. Value Of Fixed Assets (Acquired / Proposed)

i. Land: Value / Cost (RM), Location / Size / Type

ii. Business Premise / Building: Value / Cost (RM), Location / Size / Type

iii. Warehouse: Value / Cost (RM), Location / Size / Type

iv. Equipment: Value / Cost (RM), Location / Size / Type

13. Existing Employment Structure / Proposed Employment Structure

i. Management / Executive: Malaysians Bumiputera, Malaysians Non-Bumiputera, Foreigners

ii. Technical / Skilled Worker: Malaysians Bumiputera, Malaysians Non-Bumiputera, Foreigners

iii. Supervisory: Malaysians Bumiputera, Malaysians Non-Bumiputera, Foreigners

iv. Clerical: Malaysians Bumiputera, Malaysians Non-Bumiputera, Foreigners

v. General / Unskilled Worker: Malaysians Bumiputera, Malaysians Non-Bumiputera, Foreigners

14. Particulars Of Existing Expatriate Posts (If Relevant)

Name, Citizenship, Post / Designation, Duration Of Permit Granted

Immigration Procedures

There is no limit of expatriate post for Distributive Trade activities. Number of expatriate permitted per company is given based on the justification provided to the Expatriate Committee, Immigration Department. Minimum salary for the expatriate must be at least RM5,000 per month and there is no age limit.

Minimum capital requirement:

• 100% local owned company (Malaysia) – RM250,000

• Foreign owned company (i.e. more than 51% shareholders are foreigners) – RM1 million

Checklist for Wholesale and Retail Trade (WRT) Business Application

Company name

Tel No./ Fax/ Email

DOCUMENTS SUBMISSION CHECKLIST WHERE APPLICABLE

1. Completed WRT 1 form

2. a) Company profile / Business Plan

b) Detailed product/catalogue/brochure

3. Latest details of Company Profile as in original computer print-out and copies of Form 49/Sections 14/Particular of Director which certified by the CCM

4. Copies of Form 32A which has been stamped if there is any change in shareholders (if applicable)

5. a) Copy of IRB’s tax registration confirmation letter

b) Copy of IRB’s confirmation of submission e-C

6. Employees Provident Funds

a) New Company - Proof of registration

b) Existing company – 3 months EPF latest statement

7. Copy of valid license by Local Authority

8. Copy of Tenancy Agreement / Sale And Purchase Agreement of the business premises or outlet which has been stamped.(If the company does not has Local Authority license)

9. Copies of latest 3 years Audited Financial Statement

Additional information:

- justification for profit/loss

10. Copy of any licenses/ approval letters related to the business products given by any relevant authorities (if applicable)

Example:

a) Medicinal / health food products - Drug Control Authority (DCA / PBKD)

b) Energy / Electrical Products - Energy Commission / SIRIM

c) Cosmetic Products - National Pharmaceutical Regulatory Agency (NPRA)

11. Copies of 3 transactions for each month of latest 3 months:

i. Custom department (K1/K2)

ii. Airway Bill / Bill of Lading

iii. DO/PO

iv. Sales Invoices

12. Information on foreign workers/expatriate

i. Valid employment pass/passport for foreign workers/expatriate (with following information - Name, Job Position, Salary, Nationality and Job Description)

ii. Estimate number of foreign/expatriate to be hired

13. *Only for exclusive restaurant:

a) Foods & Prices (Drinks Menu)

b) Eligibility Document:

i) Certificate or Document of Academic Qualification for Chef / Employee

or

ii) Certificate or Document which certify experience in foods business for Chef / Employee with minimum of 3 years’ experience

14. Photos of business premises/warehouse/office and products catalogue / sample

* Ministry only grant approval for exclusive restaurant. Exclusive restaurant criteria are as follows:

a. Size of the restaurants must at least one shop lot (1,000 to 1,500 square feet)

b. Full/partly airconditioned

c. Unique and specialized menu

d. Ambience and decoration must be in line with the restaurant’s menu

e. Cleanliness and arrangement of the restaurant

f. Location of the restaurant

Checklist on Application for Operating Business Under Unregulated Services Sector

DOCUMENTS

1. Official Application Letter

i. Summary of the company and business

ii. Specify the business of the renew application

2. Checklist on Application for Operating Business under Unregulated Services Sector

3. Completed WRT 1 form

4. Copies of Corporate/Business Information, Business Registration Certificate, Form 9, Form 24, and Form 49 and certified true copy by SSM (if applicable)

5. Resume and copies of academic qualification of top management and board of Directors

6. Copies of form 32A which has been stamping if there is/are any change/s in shareholder/s

7. Company’s profile and summary of business plan

8. Company’s Bank Statement for the latest of 6 months

9. Certified Inland Revenue Board’s tax registration and copy of tax payment slip for the latest of 3 year or latest of 6 months

10. Copy of relevant license by Local Authority with valid period

11. Copy of KWSP & SOCSO payment statement for the latest of 3 months

12. Copy of Tenancy Agreement/ Sale & Purchase Agreement of the business premises or outlet which has been stamping (if the company does not have PBT license)

13. Copies of Audited Financial Statement for the latest of 3 years and has been signed by Board Of Directors

14. Copies of Contract Agreement/Letter of Intent/proven payment being paid for any related job implemented

15. Coloured photos describing business premises/services/products

Note:

Please provide one set original document and one set copied document. One set original document to be certified true copy by the Court’s Registrar or Commissioner for Oath only.

LIST OF SUB SECTOR ON UNREGULATED SERVICES UNDER PURVIEW OF MINISTRY OF DOMESTIC TRADE, CO-OPERATIVES AND CONSUMERISM (MDTCC)

Sub Sector: Definition / Business Activities

Other Land Transport Services

Passenger transportation by man- or animal-drawn vehicles: Passenger transportation by man- or animal-drawn vehicles or conveyances and by pack animals, provided that the services of a driver are provided with the vehicles or animals.

Freight transportation by man- or animal-drawn vehicles: Transportation by land modes of transport other than railway, of freight, not elsewhere classified.

Transport Services via pipeline

Transportation of petroleum and natural gas: Transportation via pipeline of crude or refined petroleum and petroleum products and of natural gas.

If you would like to know more, please contact us.