Regional / Representative Office in Malaysia

 

 

 

 

 

 

 

 

An alternative way for Foreign Investors to set up a Company in Malaysia

HOW IT WORKS

Foreign investors may choose to set up a Representative Office to carry out research and development (R&D), feasibility studies by collecting relevant information on investment opportunities in Malaysia or set up a Regional Office that serves as the coordination center for the company’s organization affiliates, subsidiaries and agents in South-East Asia and the Asia Pacific Region.

Eligibility Criteria for Regional Offices
The Representative Office / Regional Office’s expenditure must be at least RM300,000 per year and should be completely funded by the (foreign) parent company.

ALLOWED ACTIVITIES

The representative office/regional office is allowed to carry out the following activities:

  1. Planning or coordination of business activities
  2. Gathering and analysis of information or undertaking feasibility studies on investment and business opportunities in Malaysia and the region
  3. Identifying sources of raw materials, components or other industrial products
  4. Undertake research and product development
  5. Act as a coordination center for the corporation’s affiliates, subsidiaries, and agents in the region
  6. Undertake other activities which will not result directly in actual commercial transactions

RESTRICTIONS

The representative office/regional office is not allowed to carry out any business transaction nor derive income from its operations and is not allowed to carry out the following activities:

  1. Be engaged in any trading (including import and export), business or any form of commercial activity
  2. Lease warehousing facilities; any shipment/transhipment 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
  4. Participate in the daily management of any of its subsidiaries, affiliates or branches in Malaysia

EXPATRIATE POSTS

During approval of a Representative office / Regional Office, a quota for Expatriate Posts will be established, depending on the functions and activities of the company.
Expatriates will only be considered for Managerial and Technical posts.

If the company wishes to undertake business activities/transactions it may choose to incorporate a Private Limited (Sdn Bhd) company.

TALK TO AN EXPERT ABOUT SETTING UP A REGIONAL OFFICE

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Representative / Regional Office in Malaysia
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