Home Knowledge Other Jurisdictions Southeast Asia Company Registration Guide to Setting up of Representative Office/Regional Office in Malaysia
(1) |
Compliance with the rules and regulations set by local authorities is relatively straightforward and requires less compliance compared to other types of business entity; |
(2) |
Offers foreign companies a convenient and quick process to obtain working visas for their employees to carry out non-commercial activities; and |
(3) |
The expenses associated with setting up and operating are minimised as there is no immediate need to establish a company. |
(1) |
Eligible Sectors: (a) Manufacturing sector; (b) Services sub-sectors promoted by MIDA and other services sub-sectors on case to case basis; or (c) Government sector and foreign organisation. |
(2) |
Type of applicants: (a) Foreign Government Agencies; (b) Foreign Organisation, Universities and Institutions; or (c) Foreign Companies (Conglomerates and Non-Conglomerates). |
(3) |
The name of the Representative Office/Regional Office must be the same as to the parent’s entity. |
(4) |
Representative Office/Regional Office is allowed to operate in commercial premises only and is allowed to undertake activities within the permissible activities. |
(5) |
The minimum operational expenditure for new establishment of the Representative Office/Regional Office is RM300,000 per annum or as proposed by the applicant, whichever is higher. |
(6) |
Representative Office/Regional Office should be financed by funds emanating from sources outside of Malaysia. |
(1) |
Gathering and analysis of important information or undertaking feasibility studies on investment and business opportunities in Malaysia and the region; |
(2) |
Planning or coordination of business activities; |
(3) |
Identifying sources of raw materials, components or other industrial products; |
(4) |
Undertake research & product development; |
(5) |
Act as a coordination centre for the corporation’s affiliates, subsidiaries and agents in the region; and |
(6) |
Other activities which will not result directly in actual commercial transactions. |
(1) |
Engaged in any trading (including import and export), business or any form of commercial activity; |
(2) |
Lease warehousing facilities; any shipment/transshipment or storage of goods shall be handled by a local agent or distributor; |
(3) |
Sign business contracts on behalf of the foreign corporation or provide services for a fee; and |
(4) |
Participate in the daily management of any of its subsidiaries, affiliates, or branches in Malaysia. |
(1) |
Certificate of incorporation of the parent company; |
(2) |
Audited financial statements for the last two (2) years of parent company; |
(3) |
Company profile of parent company; and |
(4) |
Information on the background of the parent company, purpose of establishment, the activities of the proposed Representative Office/Regional Office, the benefits the Representative Office/Regional Office will bring to Malaysia, the estimated cash flows, human resources and/or expatriate posts requirements. |
(1) |
Certified passport of the expatriate; |
(2) |
Certified certificate of academic qualifications of expatriate; and |
(3) |
Resume of the expatriate. |
(1) |
Progress Report/Annual Activities Progress report/annual activities for the Representative Office/Regional Office must be submitted to MIDA every 12 months and before application for extension of Representative Office/Regional Office is approved. |
(2) |
Extension Application for Representative/Regional Office If the foreign company wishes to apply for the extension of Representative Office/Regional Office, the application for the extension must be submitted to MIDA at least three (3) months before the expiry date. However, the approval for extension shall be considered subject to the compliance of imposed conditions. |
Disclaimer All information in this article is only for the purpose of information sharing, instead of professional suggestion. Kaizen will not assume any responsibility for loss or damage. |