Setting Up a Representative Office in Malaysia

What is a Representative Office/Regional Office?

A Representative Office (RO) or Regional Office (RO) in Malaysia is an extension of a foreign company, established to perform specific functions on behalf of its head office. It does not engage in commercial activities and is fully funded by sources from outside Malaysia.

Setting up a Representative/Regional Office requires approval from Malaysian Investment Development Authority (MIDA) and is not required to be incorporated under the Companies Act 2016.

Types of Offices

1. 1. Representative Office (RO)

An RO is established for market research, feasibility studies, and promotional activities. It enhances trade relations and supports investment opportunities in Malaysia, particularly in the manufacturing and services sectors.

1. 2. Regional Office (RO)

An RO serves as a coordination center for a foreign company’s affiliates, subsidiaries, and agents across Southeast Asia and the Asia-Pacific region. It oversees regional strategies but does not generate revenue.

Permitted Activities

A Representative/Regional Office is allowed to:

• • Conduct market research and feasibility studies.
  • Plan and strategize business activities for its head office.
  • Identify sources of raw materials and business opportunities.
  • Undertake research and product development.
  • Act as a liaison and coordination center for subsidiaries and affiliates.
  • Perform other non-commercial support functions.

Prohibited Activities

• • A Representative/Regional Office is not allowed to:
  • Conduct any form of business, trade, or commercial transactions.
  • Engage in import/export activities.
  • Lease or operate warehousing facilities.
  • Sign business contracts or provide services for a fee.
  • Participate in the daily management of subsidiaries or affiliates.

Establishment Duration

A Representative/Regional Office is granted approval for a minimum of two (2) years, subject to case-by-case evaluation.

Eligibility Requirements

• • A minimum estimated operational expenditure of RM300,000 per year.
  • Funded by foreign sources (parent company).
  • A complete business profile of the parent company must be submitted.

Application Process

1. 1. Required Documents (Without Expatriate Posts)

• • • Certificate of Incorporation of the parent company (notarized).
    • Latest Audited Financial Statements (2 years).
    • Company Profile (English version).
    • Declaration of Appointment of Agent (prepared by us).
    • Office Tenancy Agreement (submitted after approval).

1. 2. Additional Documents (With Expatriate Posts)

• • • Resume/CV of the expatriate applicant.
    • Academic Certificates (notarized and translated if necessary).
    • Passport Copy (all pages, notarized).

Expatriate Positions & Taxation

A Representative/Regional Office may apply for expatriate posts, subject to approval.

• • Expatriates are only allowed for managerial and technical positions.
  • The proposed expatriate must be a current employee of the parent company.
  • Taxation:
  • Expatriates in a Representative Office are subject to normal Malaysian income tax.
  • Expatriates in a Regional Office are taxed only on income earned during their stay in Malaysia.

Estimated Processing Time

• • Approval for Registration: ~6 weeks after application submission
  • Visa Processing (if applicable): 1-3 months after receiving registration approval

Get Started

We provide full assistance in setting up your Representative/Regional Office in Malaysia.

Contact us today to start the process. We will guide you through application approvals, documentation, and compliance requirements!