Open a Representative Office in Malaysia

Updated on Wednesday 14th September 2016

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Malaysia is one of the top investment destinations from Asia. A representative office of a foreign company in Malaysia is an office established in order to operate permissible activities for its parent company from abroad. The representative office of an international company also collects relevant information on investment opportunities in Malaysia in different domains, such as manufacturing and services, trade relations development, promotion of the export of Malaysian goods and services and many others. 

Our specialists in company formation in Malaysia can offer specific information and legal assistance when setting up a representative office in this country.
 

Activities allowed for a representative office in Malaysia


The representative office established in Malaysia will act as a coordination centre for the parent company's subsidiaries, affiliates and agents in the area. Foreign investors must know that they are not allowed to carry out any business transactions. They are not permitted to derive profit from its operations. Consequently, a representative office in Malaysia is allowed to develop the following activities: 

•    Gather and analyze important information on investment and business opportunities in Malaysia and the region;
•    Undertake feasibility studies on investment ideas;
•    Plan/coordinate business activities;
•   Identify sources of industrial products, such as different components and raw materials relevant in the operational domain;
•    Undertake research and product development;
•    Other activities which will not result in commercial transactions.

Our experts in company incorporation in Malaysia will help you with the legal matters that define the specific activities you are allowed to develop in this country.


Forbidden business activities for a representative office in Malaysia


Every international entrepreneur interested in opening a representative office in Malaysia should be aware of the fact that a representative office is not permitted to carry out activities such as:

•    engagement in any trading (for example, import and export) or any other form of commercial activity;
•    leasing warehousing facilities; 
•    any shipment or storage of goods will be handled by a local agent;
•    signing business contracts on behalf of the foreign company;
•    providing services for a fee;
•    participating in the daily management of its affiliates, subsidiaries or branches in Malaysia.

In order to pay careful attention on the business activities a foreign investor will conduct when opening a representative office in this country, our company formation agents in Malaysia will provide specific legal assistance on the matter. It might also provide help regarding the application procedure (excluding banking, financial and tourism services) that should be submitted in three copies to Malaysian Industrial Development Authority (Manufacturing Services Division) and the following documents should accompany the expatriate's application: certified copy of passport, curriculum vitae, certified academic qualification.

Please contact our company formation agents in Malaysia for further information on the matter. 

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