SETTING UP A REPRESENTATIVE OFFICE/ REGIONAL OFFICE
1. Definition
A Representative Office/Regional Office of a foreign company/organisation in the manufacturing and services sector is an office which is established in Malaysia to perform permissible activities for its head office/principal. The Representative Office/ Regional Office does not undertake any commercial activities and only represents its head office/principal to undertake designated functions. The Representative Office’s/ Regional Office’s operation is completely funded from sources outside Malaysia. The Representative Office/ Regional Office is not required to be incorporated under the Companies Act 1965. The setting up of a Representative/Regional Office requires the approval by the Government of Malaysia.
1.1 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).
1.2 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.
2. Activities Allowed
The representative office/regional office established is not allowed to carry out any business transaction nor derive income from its operations.
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(RE RO)
An approved representative office/regional office is allowed to carry out the following activities:
-Planning or coordination of business activities
-Gathering and analysis of information or undertaking feasibility studies on investment and business opportunities in Malaysia and the region
-Identifying sources of raw materials, components or other industrial products
-Undertake research and product development
-Act as a coordination centre for the corporation's affiliates, subsidiaries and agents in the region
-Undertake other activities which will not result directly in actual commercial transactions
3. Activities Not Allowed
However, an approved representative office/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 / transshipment 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
4.Duration of Establishment
- Government and Trade Association
Duration is based on the requirement of the applicant.
- Company
Minimum of two (2) years depending on the merits of each case.
- Others (including non-profit organisations not relating to trade)
Minimum of two (2) years depending on the merits of each case.
5. Expatriate Posts
A Representative office/Regional office will be given expatriate post and the number allowed depends on the functions and activities of the Regional Office/Representative Office. Expatriates will only be considered for managerial and technical posts. The work permit will be considered for a minimum oftwo-years and is renewable.
An expatriate working in a Representative Office is subject to normal income tax. 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.
6. Procedure for Application:
6.1An application (excluding banking, financial and tourism services) should be submitted in three (3) copies to:
Director-General
Malaysian Industrial Development Authority
Manufacturing Services Division
1st Floor, Plaza Sentral
Jalan Stesen Sentral 5
Kuala Lumpur Sentral
50470 Kuala Lumpur
MALAYSIA
Tel : (603)2267-3633
Fax : (603)2273-4216
E-mail :
Website :
6.2An application for a Representative/Regional Office and/or expatriate post should be submitted using the following forms:
a.RE/RO-1
Application for a Representative Office/Regional Office and/or Expatriate Post
The following documents should be submitted together with the application:
(i)Certified true copy of the Certificate of Incorporation of the parent company; and
(ii)Other relevant information that can support the company’s application such as company profile and brochures.
b.RE/RO-2
Application for Extension of a Representative Office/Regional Office and/or Expatriate Post
The following documents should be submitted together with the application:
(i)A copy of the last one (1)year’s activity report
(ii)Tenancy Agreement
(iii)EPF contribution slips (if employing Malaysians).
c.RE/RO-3
Application for Additional/Replacement of Expatriate for a Representative Office/Regional Office
6.3Details of the expatriate post applied for should be submitted using the format attached as in Appendix I of the application form. The following documents should be submitted together with the application:
(i)Certified true copy of passport containing particulars of the expatriate;
(ii)Curriculum Vitae of the expatriate to be employed; and
(iii)Certified Academic Qualification of the expatriate.
6.4For application related to banking and financial services, please contactBank Negara Malaysia at the following address:
Director
Regulation and Supervision Support Unit
Bank Negara Malaysia
Jalan Dato’ Onn
50480 Kuala Lumpur
Malaysia
Tel : (603) 2690 8044
Fax : (603 )2693 4051
Website :
6.5For application related to tourism services, please contact the Ministry of Tourism, Malaysia at the following address:
Secretary General
Ministry of Tourism
Licensing Division
Putra World Trade Centre
45, Jalan Tun Ismail
50695 Kuala Lumpur
Tel : (603)2696-3163
Fax : (603)2693-4789
Website :
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