The Foreigner’s Guide To Opening A Trading Company In Malaysia
Though still below previous highs, Malaysia’s 5.1% YoY growth in its wholesale and retail sector for February 2025 is an improvement that suggests a market with upward momentum.
For those interested, setting up a trading company in Malaysia is quite straightforward, and by the end of this guide, you’ll understand what next steps you should take.
Here’s how we’ve broken it down:
- requirements to register a company
- necessary trading licenses
- a step-by-step timeline (including fees)
Note: As trading is very niche-specific and particularly popular among foreign businesses, we’ve written this as a general guide with foreign readers in mind. If you’re local or need more specific answers, get in touch!
Otherwise, let’s begin.
Registering a company in Malaysia
If you already have a company in Malaysia, note that there is a higher minimum paid up capital requirement for trading as a foreign business.
The very first step is to incorporate a private limited company in Malaysia, known locally as Sendirian Berhads (Sdn Bhd).
A Sdn Bhd can be fully or partially foreign owned provided they have at least:
- one shareholder
- one director residing in Malaysia, and
- RM1,000,000 in paid up capital
For clarity, this means all directors can be non-Malaysians, but at least one of them must have a principal residence in Malaysia.
The usual paid up capital requirement for foreign companies is actually RM500,000 but as we explain later, one of the mandatory licenses carries a RM1 million paid up capital rule.
There is also a registration fee based on your company share capital as shown below:
| Share Capital (RM) | Fees (RM) |
| RM1 million and below | 5,000.00 |
| >RM1 million but not exceeding RM10 million | 20,000.00 |
| >RM10 million but not exceeding RM50 million | 40,000.00 |
| >RM50 million but not exceeding RM100 million | 60,000.00 |
| >RM100 million | 70,000.00 |
Company registrations are done through the Companies Commission of Malaysia (SSM), the federal body that regulates business entities in Malaysia.
Here’s the good news: SSM allows online company incorporation via their MyCoID portal.
Now the bad news: First timers must physically visit SSM offices to register an account.
If you’re in the country, see our guide to DIY company registration in Malaysia, but otherwise, you’ll need to engage a third-party service provider to incorporate for you or hop on the next flight here!
Applying for trading licenses
There are two licenses that basically all foreign trading companies need:
- PBT composite license, and
- WRT license
On top of those are specific import and export licenses based on products dealt in.
PBT composite license
A composite license consists of a premise and signboard license, which allow a business to operate in a premise and display a signboard for advertising.
They are issued by a PBT (Pihak Berkuasa Tempatan), the Malay term for Local Authorities of a district.
Fees vary by district as each PBT sets their own regulations, but in our experience, a composite license for a single warehouse-like structure costs around RM1,000 annually.
For more details, see our answers to FAQs on PBT license applications.
WRT license
Wholesale, Retail, and Trade (WRT) licenses are issued by the Malaysian Ministry of Domestic Trade (KPDN) for foreign businesses (at least 51% foreign equity) operating in Malaysia’s distributive trade sectors.
This license carries a RM1,000,000 paid up capital requirement and we cover the application process from end-to-end in our WRT license guide.
Import / export license
We apologise in advance because this is where things get murky!
There are multiple governing bodies that issue import and export permits based on product. It wouldn’t be practical to list them all, but here are some common product-agency pairs.
| Product | Governing Bodies |
| Automobiles | Ministry of International Trade & Industry (Import and Export Control Section) |
| Iron and Steel | Ministry of International Trade & Industry (Import and Export Control Section) |
| Heavy Machinery | Ministry of International Trade & Industry (Import and Export Control Section) |
| Medicine Maker Machines | – Ministry of International Trade & Industry (Import and Export Control Section) – Ministry of Domestic Trade and Cost of Living (KPDNHEP) – Ministry of Health (Pharmaceutical Services Division) |
| B&W Duplication Machines / Multi-function Printers / Helmets / Toner | Ministry of International Trade & Industry (Import and Export Control Section) |
| Plastic Waste | Department of Environment |
| Used Tyres | Malaysian Investment Development Authority (MIDA) |
| Activated Clay | Ministry of International Trade & Industry (Import and Export Control Section) |
| Wheat Flour | Ministry of International Trade & Industry (Import and Export Control Section) |
| Wheat Flour for Industry | Ministry of International Trade & Industry (Import and Export Control Section) |
| Milk | Department of Veterinary Services |
| Pseudoephedrine, Ephedrine, Controlled Substances | Ministry of Health (Pharmaceutical Services Division) |
| Food | Ministry of Health (Food Safety & Quality Division) |
License application steps & timeline
As every application is made under different circumstances, treat the wait times as estimates instead of hard and fast rules.
| Step | Time Taken | Notes / Fees |
| Step 1: Company incorporation | 3 – 5 working days | Register for account on SSM MyCoID and carry out name reservation + incorporation. Fee: RM1,010 |
| Step 2: Apply for premise and signboard license | 15 – 30 working days | Obtained from Local Authority where your premise is located. Officers will inspect your premises, and expect requests for changes to comply with requirements. Fee: Differs between municipalities |
| Step 3: Apply for WRT License with KPDN | 2 – 3 months | Done through BLESS, Malaysia’s online business license application portal. A WRT application form for reference. No fee |
| Step 4: Register for any import / export permits | Depends on governing bodies | Depends on governing bodies |
All in all, a trading company can be up and running in as little as four to five months, but of course it could take longer depending on the licenses needed.
Also, note the fees listed are only government registration charges and don’t include third party services.
And that’s it for now!
We wish you all the best with your trading company, and if you need help, MISHU is always here.
Let MISHU help set up your trading company
Our team has years of experience helping foreign businesses set up operations in Malaysia and meet ongoing compliance rules. If you need help navigating Malaysia’s business world, let us be your navigators!