Get Consultation

+603 2385 7289

Malaysia Representative Office Setup

Setting Up A Representative Office In Malaysia

An office of a foreign company permitted to improve bilateral commercial relations, promote the export of Malaysian goods and services, conduct research and development, and gather relevant information on investment prospects in the country, particularly in the manufacturing and services sectors (R & D).

Activities permitted

The authorized  representative office is not permitted to conduct any business transactions or generate revenue from its operations. The following tasks may be performed by an authorised representative office:

a) Planning or coordinating business operations
b) Gathering and analysis of data or undertaking feasibility
c) finding sources for raw materials, components, or other industrial products
d) engaging in other activities that will not directly influence the company.

Activities Prohibited:

An approved representative office is not permitted to perform the following tasks, though:

a) Engage in any commercial activity, including trading (including import and export).
b) Rent warehouse space; any shipment, transhipment, or storage of goods must be handled by a local distributor or agency.
c) Sign business agreements on the foreign corporation’s behalf or provide services for payment.
d) Participate in the day-to-day management of any of its Malaysian subsidiaries, affiliates, or branches.

Establishment period:

Government and Trade Association – The applicant chooses the duration.

Company – Depending on the scenario, at least two (2) years.

Depending on the merits of the case, non-profit organisations not engaged in trade must wait a minimum of two (2) years.

What documentation is required to set up a representative office in Malaysia?

The notary public must certify all documents, and they must be written in English.

The necessary records consist of:

  • A summary of the parent firm’s business;
  • A completed application form outlining the establishment’s goals, the planned RO’s activities, the advantages the RO will have for Malaysia, and the anticipated cash flow and resource requirements;
  • A photocopy of the parent company’s incorporation certificate;
  • A copy of the most recent annual reports and audited financial statements of the parent firm;
  • Tenancy agreement for their Malaysian company address;
  • A copy of the approved expat’s passport;
  • A recent passport-size photo, copies of their resume, and work references.

 

1-2 page text that describes:

  1. A detailed explanation of the applicant’s responsibilities
  2. A detailed description of the company’s activities.

Duration of the RO?

The RO can be established by a company for a minimum of two years, with the possibility of an extension based on the company’s commitment to operational expenses and the merits of each instance.

The Representative Office can be extended according to the merits of each case for a maximum of five years for governmental organisations or trade associations.

Our expert team assist you to set up a representative office in Malaysia.

READY LEAVE ACCOUNTING TO US?

Book A Free Consultation with us Today.