Malaysia is a thriving business hub, attracting foreign investors and global brands looking to enter the wholesale and retail sector. With its strategic location, growing domestic and neighbouring consumer market, and business-friendly policies, Malaysia offers immense opportunities for international retailers and wholesalers as a springboard into the region.
However, foreign ownership regulations, licensing requirements, and tax compliance can be complex. That’s where Amaze Advisory comes in! We provide end-to-end business solutions, from company incorporation to licensing, tax planning, and global mobility, ensuring a smooth and fully compliant business setup.
Why Invest in Malaysia's Wholesale & Retail Sector?
- Strategic Location:
Gateway to ASEAN’s 650 million consumers, China’s and India’s 2.8 billion consumers. In addition, you can get to major cities within 6 hours. - Growing Middle-Class Population:
Increasing consumer spending power. - Business-Friendly Policies:
Competitive tax rates and foreign investment incentives. - Strong Retail Infrastructure:
Established shopping malls, e-commerce platforms, and logistics networks. - Government Support:
Various incentives for foreign businesses under Malaysia’s investment programs.
Step-by-Step Guide to Setting Up a Wholesale & Retail Business in Malaysia
1. Understanding Foreign Ownership Regulations
The wholesale and retail sector is regulated under Malaysia’s Guidelines on Foreign Participation in Distributive Trade Services. Key rules include:
- Foreign investors can own 100% equity in wholesale, retail, and franchise businesses, subject to approval from the Ministry of Domestic Trade and Cost of Living (KPDN).
- Certain sectors, such as restaurants, supermarkets, hypermarkets, and direct selling businesses, may have foreign equity restrictions or require local Bumiputera partnerships. Amaze Advisory can assist to secure a local partner or a nominee to assist on your market expansion.
Need clarity on ownership regulations? Amaze Advisory provides expert guidance on compliance and licensing.
2. Choosing the Right Business Structure
Foreign companies can establish their wholesale or retail business under this structure:
- Private Limited Company (Sendirian Berhad/Sdn Bhd):
The most popular company structure for foreign investors, allowing 100% foreign ownership in most sectors and established regulations.
Confused about the best structure for you business? Consult Amaze Advisory for tailored solutions.
3. Registering Your Business with SSM
All business in Malaysia must be registered with the Companies Commission of Malaysia (SSM). The process includes:
- Step 1: Name Reservation
Choose and register a unique business name. - Step 2: Prepare Incorporation Documents
Including the company registration form, director/shareholder details, business address and resolution from corporate shareholder. - Step 3: Submit Registration Application
It will take 2 to 5 working days to obtain approval. - Step 4: Receive Certificate of Incorporation
Once approved, SSM issues the Certificate of Incorporation (Section 17).
At Amaze Advisory, we handle the entire company registration process, ensuring a hassle-free experience.
Amaze Advisory ensures a smooth and fast registration process, handling all paperwork and submissions for you!
4. Obtain Business Licenses & Approvals
- Wholesale & Retail Trade (WRT) License (mandatory for foreign-owned companies).
- Business Premise & Signboard License from local city councils.
- Import & Export Permits for businesses trading goods across borders.
License requirements can be complex – let Amaze Advisory take care of it for you!
5. Securing a Business Premise
Retail businesses must have a physical shop, office, or warehouse that complies with local zoning laws. Options include:
- Shopping malls:
Ideal for fashion, electronics, and lifestyle brands. - Standalone retail stores:
For specialized retailers and high-end brands. - E-commerce & Online Wholesale:
Selling via Shopee, Lazada, or custom platforms. - Warehouse:
For wholesale of consumer goods.
6. Opening a Corporate Bank Account
A business bank account is required for daily transactions. Most banks require:
- SSM registration documents
- Company constitution
- Directors’ and shareholders’ details
- Business licenses (if applicable)
Amaze Advisory assists with selecting the right bank and preparing all necessary documentation.
7. Understanding Taxation & Financial Compliance
Foreign-owned businesses must comply with Malaysia’s tax laws, which include:
- Corporate Tax: 24% standard rate.
- Sales & Service Tax (SST): Applies to certain retail and wholesale goods.
- Withholding Tax: Applies to foreign transactions.
- Custom Duties & Import Tax: For businesses trading across borders.
Amaze Advisory offers tax planning and financial advisory services to help you minimize costs and maximize profits.
8. Hiring Employees & Work Permits
Businesses hiring foreign employees must obtain work visas such as:
- Employment Pass (EP) – For professionals and senior executives, technical staff and senior management.
- Professional Visit Pass (PVP) – For short-term employment less than 12 months.
Common Challenges & How Amaze Advisory Can Help
| Challenge | Solution by Amaze Advisory |
|---|---|
| Foreign ownership restrictions | We advise on compliance and partnership structures |
| Complex licensing process | We handle all regulatory approvals and permits |
| Banking setup | We assist in opening corporate bank accounts |
| Hiring foreign employees | We manage work permit applications and compliance |
Conclusion
Malaysia’s wholesale and retail sector offers immense opportunities for foreign investors. By following the right legal and regulatory steps, you can establish a successful business while benefiting from Malaysia’s strong economy, growing consumer market and its close proximity to the two big economies, China and India.
At Amaze Advisory, we provide end-to-end business setup solutions, including:
- Company Incorporation, Company Secretary and Nominee Services
- Accounting & Financial Advisory
- Tax & Advisory
- Payroll Outsourcing
- Employer of Record (EOR)
- Immigration & Global Mobility
- Wholesale & Retail Trade (WRT) License Application
Get Started with Amaze Advisory Today!
Phone: +6013-284 7678 / +6013-323 7678
Website: www.amazeadvisory.com
