HOW TO REGISTER A FOREIGN COMPANY IN MALAYSIA 2023

If you're a foreign businessman or company looking to expand your business in Malaysia, it's important to understand the available options for foreign company registration. In this guide, we'll take a look at the different types of company registration options available and their requirements.
Foreign Company Registration Options in Malaysia

As a foreign investor, you can obtain ownership of a company by setting up one of the following registration options:

1. Branch Office
A branch office is an extension of the foreign parent company and is not considered a separate legal entity. The parent company is liable and responsible for all debts and operations of the branch in Malaysia. A branch office is suitable for short-term expansion plans and must have at least one Malaysian resident nominee director or agent.

• 100% owned by the head office
• Must file audit reports for both branch office and parent company
• Taxed as a non-resident entity with no local tax benefits
• Taxed at 25% on profits attributable to the branch (subject to tax adjustments)
• Withholding tax of 10% + 3% applicable on payments made to the branch for services performed in Malaysia
• Generally, tax incentives are not available for branches.

2. Representative Office
A representative office doesn't have independent legal standing in Malaysia, making its parent company responsible for all debts and liabilities.

• The name must be the same as the parent company's name.
• For temporary research purposes only; no actual commercial transactions are allowed.
• Proposed operational expenditure must be at least RM300,000 per annum.
• The expatriate post will be given based on functions/activities with expats considered only for managerial/technical posts.

3. Private Limited Company (SDN BHD)
This type of entity is common among foreign investors as foreigners can own up to 100% of their companies. However, some industries require 50% to 60% Malaysian ownership, including agriculture, banking, education, oil, and gas. A private limited company or SDN BHD is a separate legal entity from its owners.

• Can use the parent company name or a different name.
• Can conduct multiple business activities.
• Suitable for local/foreign companies looking to expand operations in Malaysia.
• One shareholder is required and can be solely owned by a corporate body (either 100% local or 100% foreign-owned).
• One resident director is required with no Malaysian citizenship requirement.
• Taxed as a Malaysian resident entity with local tax benefits available.
• Tax incentives may be available depending on the type of activity undertaken and subject to meeting eligibility conditions.
• No restrictions on hiring local/foreign staff.

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Post-registration Requirements and Compliance
Once you've successfully registered your company in Malaysia, you must fulfill post-registration requirements such as opening a corporate bank account, obtaining business licenses & permits (export-import licenses, CIDB, DBKL, Food licenses), registering as a taxpayer with the provident fund, appointing auditors and applying for WRT and ESD.

Why Choose Lim & Ani Associates Sdn Bhd
At Lim & Ani Associates Sdn Bhd we provide one of the best business & company setup consultancy services in Malaysia. Our team includes experienced & licensed company secretaries, professional accountants, auditors, tax & SST experts, and business advisors – offering a one-stop business solution in Malaysia.
In conclusion, understanding foreign company registration options is crucial when expanding your business in Malaysia. Choosing the right registration option can help you avoid unnecessary complications while ensuring compliance with legal obligations. With our comprehensive guide to foreign company registration in Malaysia and our consultancy services at Lim & Ani Associates Sdn Bhd – you're sure to have all the support needed to make your expansion plans successful.

As one of the best leading corporate advisors, we are offering services below as per business act 2016 & Malaysian Government policy; 

1. Company registration consultancy.
2. Business setup advisory.
3. Accounting advisory.​
4. Business licenses advisory.
5. Professional global business advisory.
6. Marketing & planning.
7. Legal business policy & HR management.
8. Business survival & transformation advisory.

Call, Email or text us.
LIM & ANI ASSOCIATES SDN BHD
Call: +60108242527 (whatsap & viber)
Call: +601126664168 (whatsapp)
Call: +603-58856648 (office landline)
Email: [email protected]
www.mbbusinessjoint.com

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