Skip to main content

Setting up a representative office
in Malaysia.

A representative office is an entity that is ideal for foreign companies seeking to study the market in Malaysia for research and business development purposes, with a view to determining whether setting up operations in Malaysia is a viable proposition.
Request a quote
Learn more

What is a representative office?

A representative office (RO) is a non-trading entity that allows foreign-based companies to have a presence in Malaysia together with their expatriates to explore business opportunities within the country.

A Representative Office allows foreign companies a period of 2-5 years to see if Malaysia is the right place for them to stay and to start their business by setting up a company or branch. The approval for the duration of an establishment of the representative office depends on the merits of each case. There is no tax imposed on a representative office.

It is an extended office of a foreign company approved to

  • gather relevant information on investment opportunities in the country,
  • promote the export of Malaysian goods and services; and
  • to carry out market research and development (R&D).

Permitted activities by the representative office.

  • Collating and gathering important information or undertaking feasibility studies on investment and business opportunities in Malaysia and the region
  • Planning or organising business activities
  • Conducting research and product development

Advantages and disadvantages of setting up a representative office.

Advantages.

  • Compliance – easy to comply with the local authorities in regards to the rules and regulations for the office’s approval. RO is less compliance-heavy compared to other operating entity types.

  • Work visas – foreigners and their dependents (spouse and children of under age 21) will be entitled to a three-year expatriate work visa. Spouses who have been granted a dependent visa can be legally employed by any company in Malaysia.

  • Cost efficient – since there’s no need to immediately set up a company it incurs less setup and operational costs

Disadvantages.

  • Restrictions on activities
  • Cannot engage in any trading, business or other form of commercial activities
  • Cannot sign business contracts on behalf of parent foreign corporation or provide services for a fee

Required documents for setting up a representative office.

  • Completed application form with information such as purpose of establishment, activities of proposed office, benefits to Malaysia from the establishment of RO, estimated cashflow and human resources arrangements for the proposed RO
  • Copy of the parent company’s certificate of incorporation
  • Parent company business profile
  • Copy of the parent company’s latest annual report and audited accounts of 2 years
  • Copy of passport
  • 1 passport size recent photo
  • Copies of educational certificates (above high school)
  • Copy of resume
  • Copies of past employment testimonials, appointment letters
  • Tenancy agreement for business operations address in Malaysia

  • 1-2 page document that outlines:

    • Detailed description of the duties to be performed by the applicant
    • Detailed description of activities and/or products of the company
Ready to get started?

Request a quote now to take the next step towards starting your representative office.

Request a quote
Not sure where to begin?

Schedule a free 30-minute discovery call to discuss starting & operating your company in Malaysia.

Henry Ng, Managing Director

Schedule a discovery call