Everything You Need to Know About Setting Up a Foreign Branch Office in Malaysia
💼 Foreigner looking to set up a company in Malaysia
🗺️ Foreign business looking to expand operations to Malaysia
If you can relate to any one of the situations above, you should consider setting up a branch office in Malaysia - which is basically another type of foreign business option available for those who intend to explore the local market.
We have highlighted the advantages, requirements and steps on how to set up a branch office in Malaysia.
What is a branch office of a foreign company?
A branch office is not a separate legal entity. It is an extension of the foreign parent company and must conduct the same business activities as the parent company.
The foreign parent company is liable and responsible for all the debts of the branch in Malaysia. The activities of a branch office must be the same as the foreign parent company, and a branch is suitable for foreign companies that want to expand their business to Malaysia for a short-term basis.
There must be at least one Malaysian resident agent to set up the branch in Malaysia.
Advantages of setting up a branch office in Malaysia
Access to a new market Opening a branch office is a common method used to expand businesses in different countries.
Control of management The foreign parent company has full control over the activities of the branch office in Malaysia.
Easy registration There are fewer registration requirements as a branch office is not a separate legal entity, and does not have its own articles of incorporation. This makes the registration process shorter.
Tax benefits The branch is taxed on income that is produced inside of Malaysia, and is also subject to the double taxation agreements.
Requirements for setting up a branch office
The company name must be the same as the foreign parent company, and the name should be lodged through the SSM online system.
There must be at least one resident agent to set up the branch office.
There are no restrictions on hiring foreign or local staff for a branch office.
Certified copy of the certificate of incorporation or registration of foreign company
Certified copy of memorandum and articles or other instruments defining its constitution, if available
Copy of application and reservation for availability of names
Copy of email for approval notification of reservation of name
Certified translation of documents in Bahasa Malaysia or English if the documents are in other languages
Form 79 – Return by foreign company giving particulars of directors and changes of particulars
The power of attorney that can prove that the parent company has appointed an individual living in Malaysia to accept documents on behalf of the parent company
Steps of setting up a branch office in Malaysia
Company name registration
The company name must be registered with the SSM with a fee of RM50.00. When the name is approved, it will be reserved for 30 days from the day of confirmation and can be extended every 30 days with a maximum of 180 days for RM 50.00.
The registered company name should be the same as the foreign company name.
Registration with the SSM
Within 30 days after the confirmation of the company name, you must submit the following information to the SSM along with the required documents:
The name, identification, nationality and the ordinary place of residence of every shareholder in Malaysia
If the shareholder is a body corporate: the corporate name, place of incorporation or place of origin, registration number and the registered office of the body corporate
The name, identification, nationality and the ordinary place of residence of every person who is appointed as a director of the foreigner company in Malaysia
List of shareholder or members at the place of origin
The name and address of a person who is a resident in Malaysia
For more information or assistance for the registration process, you can contact us via WhatsApp https://wa.me/60143248237 📲