Trade License in Malaysia for a Factory or Warehouse: WRT, Council Licence and SSM
Which trade licence a factory, warehouse or trading company in Malaysia needs: SSM registration, the council premises licence, KPDN's WRT approval for foreign-owned firms and MIDA's manufacturing licence, with fees and steps.
Looking to buy or rent a factory?
- Peter TanREN 12771 · 016-666 6872
Key Takeaways
- Malaysia has no single "trade license". Running a factory or warehouse business usually takes three layers: registration with SSM, a premises licence from the local council (MBSA, MBDK, MBPJ and so on), and, only for some companies, a federal licence such as the WRT approval or a manufacturing licence.
- The WRT licence is KPDN's approval for foreign-owned companies in wholesale, retail and other distributive trade. A Malaysian-owned trading company does not need it.
- A company holding a manufacturing licence that only distributes products from its own production line is exempted from the WRT guidelines, and so are MIDA-approved regional establishments such as Regional Distribution Centres.
- The council licence is tied to the building: councils ask for the CCC or CF of the factory or warehouse, a location plan and a floor plan, so check these before you sign a lease or buy.
- Costs start small (RM60 a year for an SSM trade name, RM1,000 to incorporate a Sdn Bhd, RM50 or RM100 MBSA processing fee) but the WRT route needs at least RM1 million in shareholders' funds for most formats.
This guide explains which licence a factory, warehouse or trading business in Selangor and Kuala Lumpur needs, what each one costs and how to apply. It is general information, not legal or tax advice; check your own case with the agency or a licensed professional.
What does "trade license" mean in Malaysia?
People searching for a trade or trading licence in Malaysia usually mean one of three things:
| What people call it | Official name | Who issues it | Who needs it |
|---|---|---|---|
| Business registration | Registration under the Registration of Businesses Act 1956, or incorporation under the Companies Act 2016 | SSM (Companies Commission of Malaysia) | Every business |
| Business or premises licence | Lesen perniagaan / perindustrian, in Shah Alam called the Lesen Komposit | The local council (PBT) | Every premises where business is carried out |
| WRT licence | Approval under the Guidelines on Foreign Participation in Distributive Trade Services | KPDN (Ministry of Domestic Trade and Cost of Living) | Foreign-owned companies in wholesale, retail and other distributive trade |
A fourth one matters for factories: the manufacturing licence under the Industrial Coordination Act 1975, issued through MIDA. Sarawak has its own trade licensing law, which this guide does not cover.
Step 1: Register the business with SSM
Sole proprietorship or partnership
According to SSM's guidelines for registration of a new business, the owner must be a Malaysian citizen or permanent resident aged 18 and above. The fees on SSM's table of fees are:
| Item | Fee |
|---|---|
| New registration, personal name | RM30 per year |
| New registration, trade name | RM60 per year |
| Each branch | RM5 per year |
| Business information | RM10 |
SSM says the certificate can be obtained within one hour of payment, and you can register and renew online through EzBiz. Carrying on a business without registering is an offence with a fine of up to RM50,000, two years' jail, or both.
Sdn Bhd company
Most factory and warehouse operators trade through a private limited company. SSM's company fee table lists RM1,000 to incorporate a company limited by shares. A foreign company registering a branch in Malaysia pays from RM5,000 (share capital not more than RM1 million) to RM70,000. Banks, landlords and councils will all ask for your SSM documents, so do this first.
Step 2: Get the council licence for your factory or warehouse
Every factory, warehouse or store needs a licence from the local council for the premises. The rules come from each council's licensing by-laws under the Local Government Act 1976. In Shah Alam, MBSA's Lesen Komposit combines the premises licence and the signboard licence in one.
Documents MBSA asks for
- SSM documents (business registration forms, or company forms for a Sdn Bhd)
- Copy of the owner's or directors' identity card
- Copy of the CCC or CF for the building, and the building permit if any
- A sketch of the signboard
- A location plan and a floor plan of the premises
Fees at MBSA
| Item | Fee |
|---|---|
| Processing fee, business licence | RM50 |
| Processing fee, industrial licence | RM100 |
| Licence plate (patil) | RM7 |
| Licence sticker | RM5 |
The annual licence fee itself depends on the type and size of the premises under the council's by-laws. MBSA lets you check the status of an application online on its eLesen site.
Klang, Petaling Jaya and other councils
Each council runs its own system. In Klang, MBDK issues a temporary industrial licence first and asks you to complete the conditions within a set period; our MBDK licence guide walks through MyLesen, renewal dates and late fees. For a second view of what the council checks, see this guide to the Klang industrial licence on klangindustrial.com.
Step 3: Check whether your company needs a WRT licence
Who needs it
KPDN's Guidelines on Foreign Participation in Distributive Trade Services (2020, the fifth revision) cover foreign business operators in distributive trade. MIDA's Distributive Trade booklet defines distributive trade as all activities that channel goods and services down the supply chain to intermediaries for resale or to final buyers. It names wholesalers, retailers, franchise practitioners, direct sellers, suppliers who channel their goods in the domestic market, and commission agents, including representatives of international trading companies.
So a foreign-owned company that imports goods, keeps them in a Klang or Shah Alam warehouse and sells them to Malaysian customers is in distributive trade. The guidelines say all foreign operators in this sector are encouraged and recommended to obtain KPDN approval before they start operating.
Who is exempted
The KPDN guidelines exempt:
- Companies with manufacturing licences that only distribute products under the same production line.
- Companies granted regional establishment status by MIDA, which includes International Procurement Centres, Regional Distribution Centres, Operational Headquarters and Principal Hubs.
The exemption for manufacturers is narrow. A factory that also buys in other brands' products to resell is doing distributive trade for that part of the business.
Capital and conditions
| Format | Minimum shareholders' funds (MIDA booklet) |
|---|---|
| Hypermarket | RM50 million |
| Superstore | RM25 million |
| Department store | RM20 million |
| Specialty store | RM1 million per outlet |
| Other distributive trade formats | RM1 million per outlet |
The company must be incorporated in Malaysia under the Companies Act 2016. The KPDN guidelines also recommend appointing Bumiputera or Malay directors, hiring Malaysians at management level and keeping low skilled foreign workers to 15% of the workforce.
Why it matters when you buy or rent property
MIDA's booklet lists the purchase and sale of properties to operate distributive trade activities among the moves that need KPDN approval, together with new branches, relocation and expansion. A foreign-owned trading company planning to buy a warehouse should sort out its WRT position before committing to the property, not after.
Do factories need a manufacturing licence instead?
Under the Industrial Coordination Act 1975, a company doing manufacturing with shareholders' funds of RM2.5 million or more, or with 75 or more full-time paid employees, must apply for a manufacturing licence. MIDA's e-ML guideline sets further criteria, such as capital investment per employee of at least RM140,000 and at least 25% managerial, technical and supervisory staff (or 40% value added). Smaller companies can apply for an exemption through the ICA10 online form. Applications go through MIDA's InvestMalaysia portal.
The Act's definition of manufacturing excludes activities normally associated with retail or wholesale trade. A manufacturing licence therefore does not replace the council licence, and it does not cover reselling goods you did not make. Our factory approvals guide shows where the manufacturing licence sits among planning permission, CCC, Bomba and DOE.
How much does a trading licence cost in total?
Using only the published fees above, a Malaysian-owned Sdn Bhd trading from a warehouse in Shah Alam pays RM1,000 to incorporate and an RM50 or RM100 MBSA processing fee, plus the annual council licence fee for its premises. A foreign-owned distributor adds the WRT route, where the main cost is the RM1 million minimum shareholders' funds rather than a fee. Budget separately for the building side: fire certificate, signboard and any renovation the council requires. Our factory set-up cost guide covers those.
What changes for a factory or warehouse compared with a shop?
- The building must be approved for industrial use. The council checks the CCC or CF, and a factory without one (a KTK unit) faces a separate process.
- Heavier checks. Industrial licences go through more agencies, such as Bomba and, for some processes, the DOE.
- Storage of goods for sale counts as trading. A warehouse used to hold stock for your own trading company needs its own premises licence, even if no customer ever visits.
- Customs status is separate. Bonded warehouses and LMW factories need Customs approval on top of everything here; see our LMW and bonded warehouse guide.
Common mistakes
- Signing a tenancy before checking the CCC or CF, then finding the council will not licence the unit.
- Assuming the previous tenant's licence carries over. Licences are issued to the business, not the building.
- A foreign-owned company holding a manufacturing licence and also importing other brands to resell, without checking the WRT guidelines.
- Treating SSM registration as the licence. SSM registers the business; it does not permit you to operate from a premises.
Frequently Asked Questions
How do I get a trading license in Malaysia?
Register the business or company with SSM first, then apply to the local council where your premises is for a business or industrial licence. If your company is foreign-owned and sells goods in Malaysia, also check whether it needs KPDN approval under the WRT guidelines. Factories above the ICA thresholds also need a MIDA manufacturing licence.
How do I apply for a trade licence online?
SSM business registration and renewal are done online through EzBiz, and MIDA manufacturing licences through the InvestMalaysia portal. Council licences depend on the council: MBDK in Klang uses MyLesen, while MBSA takes forms at its counters and lets you track the application on eLesen.
How much does it cost to get a business license in Malaysia?
SSM charges RM30 a year for a personal-name business or RM60 a year for a trade name, and RM1,000 to incorporate a Sdn Bhd. MBSA charges an RM50 processing fee for a business licence or RM100 for an industrial licence, plus a licence fee based on the premises. Other councils publish their own rates.
Is SSM registration a business licence?
No. SSM registration makes the business legal to exist and trade under its name, but each premises still needs a licence from the local council. Many councils ask for the SSM documents as part of the licence application.
Does a Malaysian company need a WRT licence?
No. The KPDN guidelines apply to foreign participation in distributive trade. A wholly Malaysian-owned trading company needs SSM registration and the council licence for its premises, plus any product permits that apply to the goods.
Does my factory need a WRT licence to sell what it makes?
Not if it holds a manufacturing licence and only distributes products from the same production line, because the KPDN guidelines exempt that case. If it also resells goods made by others, that trading activity falls under the guidelines.
Do I need a licence for a warehouse that only stores my own stock?
Yes. A warehouse used for your business is a business premises, so the local council licence applies even if no customer ever visits. The council will check the building's CCC or CF.
FactoryHub is dedicated to helping every client find the right factory or warehouse. If you need a unit in Klang, Port Klang or elsewhere in Selangor with the CCC and approvals in place for your licence, call Peter Tan (REN 12771) at 016-666 6872 or Jason Low (PEA 1478) at 012-288 1834.
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