Foreign Companies Setting Up In Malaysia Choose From Three Main Options :

1. Branch Office (BO):
   - Register as a foreign company with the Companies Commission of Malaysia.
   - The branch office is an extension of the foreign parent company, not a separate legal entity.
   - It must engage in the same business activities as the foreign parent company.
2. Representative Office (RO):
   - Not incorporated under the Companies Act 2016; requires approval from the Government of Malaysia.
   - Can conduct research, development, and promotional activities but cannot engage in commercial transactions.
   - Approval depends on the industry sector.
3. Local Subsidiary (Sendirian Berhad):
   - Formed as a private limited company known as Sendirian Berhad (Sdn Bhd).
   - A separate legal entity with the ability to conduct any business activities.
   - Responsible for its own debts and liabilities.
   - Shares can be issued to individuals and corporate entities, allowing 100% foreign ownership.

Note: Some industries may require a minimum local or Bumiputera equity.

Important Note:

All companies must obtain necessary licenses, permits, and approvals from relevant authorities before starting business operations.

BACK TO ARTICLE LIST