"Can I own 100% of my Malaysian company?" is the first question almost every foreign investor asks. The short answer is yes — in most sectors. The longer answer involves one licence that catches many foreign-owned businesses by surprise: the WRT licence. Here is what 100% foreign ownership really means in 2026, and where the limits are.
100% ownership is the default
There is no general cap on foreign shareholding in a Malaysian Sdn Bhd — foreigners can hold 100% of the equity in most industries. You still need the standard pieces (a resident director, a licensed company secretary, a registered address — see our guide to registering a Sdn Bhd as a foreigner). Ownership itself is rarely the obstacle; licensing is.
The WRT licence — the one foreigners miss
If your company is more than 50% foreign-owned and operates in distributive trade — retail, wholesale, import/export, franchise, or F&B — you generally need a Wholesale, Retail Trade (WRT) licence from the Ministry of Investment, Trade and Industry (MITI). It is effectively the permission slip that lets a foreign-owned business trade, open outlets, and (importantly) apply for Employment Passes.
| Question | Answer |
|---|---|
| Who needs it? | Companies with >50% foreign equity in retail / wholesale / import-export / F&B / franchise |
| Minimum paid-up capital | RM1 million for distributive trade with majority foreign equity |
| Who is exempt? | Companies with at least 51% Malaysian ownership are generally exempt |
Sectors that stay restricted — even with a WRT licence
To protect small local traders, some activities are off-limits to foreign-owned companies regardless of a WRT licence. These typically include:
- Supermarkets and mini-markets (small-scale neighbourhood grocery);
- Provision shops / sundry stores;
- Traditional medicine halls;
- Non-exclusive (general) textile shops;
- Certain other protected retail formats.
Other sectors — financial services, defence-related activities, and land-heavy industries — may carry their own equity conditions. Always confirm your specific business activity before committing.
How to structure it right
- Map your activity against the restricted list and WRT requirement before you incorporate.
- Set paid-up capital to meet the RM1 million threshold if you are in distributive trade.
- Sequence licence and visa — WRT first where it gates Employment Passes.
- Consider the equity trade-off — if a 51% local partner is viable, you may avoid the WRT requirement entirely; if not, plan for the RM1 million capital and the licence.
ONEKEY BIZ advises foreign investors on ownership structure, the WRT licence and the full incorporation-to-visa sequence. Get a fixed-fee assessment of your activity or explore our incorporation & licensing services.
Frequently asked questions
When does a foreign-owned company need a WRT licence?
Generally when more than 50% foreign-owned and operating in distributive trade — retail, wholesale, import/export, franchise or F&B. It often also gates Employment Pass approval, so plan it early.
What paid-up capital is needed for the WRT licence?
A minimum paid-up capital of RM1 million applies to distributive trade with majority foreign equity.
Which sectors stay closed to foreign-owned companies?
To protect small local traders, activities such as supermarkets and mini-markets, provision shops, traditional medicine halls and non-exclusive textile shops typically remain restricted even with a WRT licence.
Sources & references
This article is general information only, not legal, tax or immigration advice. Policies, thresholds and official fees are set by the relevant Malaysian authorities and may change. Talk to our consultants about your specific situation.