A Representative/Regional Office of a foreign company/organisation in the manufacturing and services sector is an office established in Malaysia to perform permissible activities for its head office/principal.

The Representative/Regional Office do not undertake any commercial activities and only represents its head office/principal to undertake designated functions.

]The Representative/Regional Office’s operation is completely funded from sources outside Malaysia.

The Representative /Regional Office is not required to be incorporated under the Malaysia Companies Act 2016 (“CA 2016”). The setting up of a Representative/Regional Office requires prior approval by the Malaysian Investment Development Authority (MIDA) .

Kensington Corporate Services (Malaysia) Sdn. Bhd. is a management services company in Malaysia and is able to assist you with registration of Representative/Regional Office in Malaysia.

DEFINITION

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.

ELIGIBILITY CRITERIA OF APPLICANT

• The proposed operational expenditure of the Representative/Regional Office to be incurred must be at least RM300,000 per annum or as proposed by the applicant, whichever is higher.
• The Representative/Regional Office should be financed by funds emanating from sources outside Malaysia; i.e. the parent company.

APPLICATION

• Application (excluding banking, financial and tourism services) for a Representative/Regional Office would be submitted to the Malaysian Investment Development Authority (MIDA).
• Application for a Representative Office relating to banking and financial services would be submitted to the Central Bank of Malaysia/Bank Negara Malaysia.
• Application for a Representative Office relating to tourism services would be submitted to the Ministry of Tourism, Malaysia.

DURATION OF ESTABLISHMENT

• Company and Others (including non–profit organizations not relating to trade)
  Minimum of two (2) years depending on the merits of each case.
   
• Government and Trade Association
  Duration is based on requirements of the applicant.

ACTIVITIES 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 or coordination of business activities;
• Identifying sources of raw materials, components or other industrial products;
• Undertake research & product development;
• Act as a coordination centre for the corporation's affiliates, subsidiaries and agents in the region; and
• Other activities which will not result directly in actual commercial transactions

ACTIVITIES NOT ALLOWED

Representative/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 / trans-shipment or storage of goods shall be handled by 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.

If you wish to undertake the above business activities, you may do so by locally incorporating a company under CA 2016.

EXPATRIATE POST

A Representative/Regional Office will be given expatriate post and the number allowed would depend on the functions and activities of the Representative/Regional Office.

Criteria for expatriate post(s):

• The proposed expatriate must be currently employed by the applicant company or its subsidiary or within the group.
• Expatriates will only be considered for managerial and technical posts.
• The total number of employees of the Representative/Regional Office should reflect the ideal composition of 2 expatriates to 1 Malay
• An expatriate working in a Representative 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.

With effective 1^st June 2026, the minimum salary of the expatriate are as follows:

The minimum academic qualifications and working experiences apply to an expatriate are as follows: