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Q：
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What are the setup options for foreign investors who want to register company in Malaysia?
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A：
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Foreign investors are allowed to establish private companies, branch offices, or representative offices in Malaysia. However, they are not permitted to set up sole proprietorships or partnerships unless they hold permanent residency in the country.
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Q：
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What is the most popular setup option in Malaysia?
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A：
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Private company has become the preferred business entity. Under the Companies Act 2016, a private company is allowed to conduct any kind of business activity and is suitable for foreign investors who wish to expand their operations in Malaysia, while also providing the benefit of limited liability.
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Q：
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What is the most suitable setup option for an investor to establish business in Malaysia on a short-term basis?
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A：
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Branch office is the suitable setup option. However, the branch office’s allowed activities must be the same as the parent company and is not allowed to conduct wholesale and retail trade business in Malaysia.
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Q：
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What is the function of a representative office?
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A：
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A representative office is an office of a foreign company/organisation authorised to gather information about investment prospects, particularly in the manufacturing and services sectors. It aims to strengthen bilateral trade relations, promote Malaysian exports, and engage in research and development activities.
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Q：
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Are there any conditions that need to be fulfilled to set up a representative office in Malaysia?
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A：
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The proposed operational expenditure for the new establishment must be at least RM300,000 per annum, or as otherwise proposed.
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The operation should be funded by financial sources coming from outside Malaysia.
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FAQ
