A Representative Office/Regional Office of a foreign company in the manufacturing and services sector is an office which is established in Malaysia to perform permissible activities for its head office/principal. The Representative Office/ Regional Office does not undertake any commercial activities and only represents its head office/principal to undertake designated functions. Their operation is completely funded from sources outside Malaysia and is not required to be incorporated under the Companies Act 1965. The setting up of a Representative/Regional Office requires the approval by the Government of Malaysia.
- Representative Office
A Representative Office is an office of a foreign company/organisation approved to collect relevant information on investment opportunities in the country especially in the manufacturing and services sector, enhance bilateral trade relations, promote the export of Malaysian goods and services and carry out research and development (R & D).
- Regional Office
A Regional Office is an office of a foreign company/organisation that serves as the coordination centre for the company’s/ organisation’s affiliates, subsidiaries and agents in South-East Asia and the Asia Pacific. The Regional Office established is responsible for the designated activities of the company/ organisation within the region it operates.
Activities That Are Allowed
The approved Representative/Regional office is established to perform the following permissible activities for its head office or principal:
Gathering and analysis of important information or undertaking feasibility studies on investment and business opportunities in Malaysia and the region;
- Planning of business activities;
- Identifying sources of raw materials, components or other industrial products;
- Undertake research and product development;
- Act as a coordination centre for the corporation’s affiliates, subsidiaries and agents in the region;
- Other activities which will not result directly in actual commercial transactions.
Activities That Are Not Allowed
However, an approved representative office/regional office is not allowed to carry out the following activities:
- Be engaged in any trading (including import and export), business or any form of commercial activity;
- Lease warehousing facilities; any shipment/transhipment or storage of goods must be carried out through a local agent or distributor;
- Sign business contracts on behalf of the foreign corporation or provide services for a fee;
- Participate in the daily management of any of its subsidiaries, affiliates or branches in Malaysia.
Duration of Establishment
- Minimum of two (2) years depending on the merits of each case.
Eligibility
During the application, it is required to include an estimate expenditure budget for the Representative/Regional office for the next 2 years.
The estimated operational expenditure of the Representative/Regional office must be at least RM300,000.00 per annum.
The Representative/Regional office should be financed by funds originating from sources outside Malaysia.
Application for Representative Office/Regional Office
Please take note that your application for Representative/Regional office can be without or with a visa application.
The supporting documents from the Parent Company required are as follows:
- Without Expatriate Posts
- Certificate of Incorporation*
- Latest Audited Financial Statement (2 years) – English version
- Company Profile – English version
- Three (3) duly signed sets of Declaration of Appointment of Agent (to be provided by us)
- Office Tenancy Agreement (to be submitted after registration approval)
- With Expatriate Posts – Additional Documents
- Resumes or CV of the person applying for the Visa – English version
- Certificates of Academic Qualifications – Original and English version*
- Photocopy of Passport – all pages*
*These documents must be certified as a true copy by a Notary Public or Commissioner for Oaths in your country.
Foreign language documents need to be translated to English and certified accordingly.
We will require further information regarding the parent company, contact details of the Representative/Regional office, its proposed activities, expenditure details, etc, which will be communicated to you in due course.
Expatriate Posts
A Representative/Regional office will be given expatriate post and the number allowed depends on the functions and activities of the Regional Office/Representative Office. Expatriates will only be considered for managerial and technical posts.
Request for expatriate and dependent visas should be included at the time of your Representative/Regional office application.
The proposed expatriate must be currently employed by the applicant company. An expatriate working in a Representative/Regional office is subject to normal income tax in Malaysia. However, an expatriate working in a Regional Office is taxed only on the portion of their chargeable income attributed to the number of days that they are in the country.
Time Frame
The estimated time to obtain the Certificate of Registration for your Representative/Regional office is six (6) weeks from the submission of your application.
Visa applications to the Malaysian Immigration Department can only take place after obtaining the Certificate of Registration. The estimated time frame for this is around 1 to 3 months, depending on the situation.
Contact Us
To start of the process, kindly provide us your agreement to appoint us as your agent for your Representative/Regional office in Malaysia and we will forward you our official quotation and engagement letter, and a questionnaire to be completed by you.
We look forward to being of service to you.
Please do not hesitate to contact us should you require any further information and clarification.
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- To respect and recognise the efforts of our team and provide them with an opportunity to grow and share the success of our organisation.
