How to Establish a Subsidiary Company in Malaysia

Establishing a branch office in Malaysia is a straightforward process that allows foreign companies to expand their presence in the country. Here’s a step-by-step guide to help you through the process:

Name Registration

The first step is to register the branch office name with the Companies Commission of Malaysia (SSM). The name must be identical to the foreign parent company’s name. The name reservation fee is RM50, and the name is valid for 30 days, which can be extended up to 180 days. (https://www.aseanbriefing.com/news/establishing-a-branch-office-in-malaysia/)

Submission of Documents

Within 30 days of receiving the name approval, you must submit the following documents to the SSM:

• Certified copy of the foreign company’s certificate of incorporation or registration
• Certified copy of the foreign company’s memorandum and articles of association or other constitutional documents
• List of shareholders and directors, including their names, identification numbers, nationalities, and residential addresses
• Certified translation of documents in Bahasa Malaysia or English if they are in another language
• Form 79 – Return by a foreign company providing particulars of directors and changes of particulars
• Power of attorney appointing a Malaysian resident to accept service of documents on behalf of the foreign company

Registration Fee

The registration fee for establishing a branch office depends on the foreign company’s share capital (https://bossboleh.com/articles/setting-up-a-branch-office-in-malaysia):

• RM5,000 if the share capital is not more than RM1 million
• RM20,000 if the share capital exceeds RM1 million but is less than RM10 million
• RM40,000 if the share capital exceeds RM10 million but is less than RM50 million
• RM60,000 if the share capital exceeds RM50 million but is less than RM100 million
• RM70,000 if the share capital exceeds RM100 million

Appointment of Local Agent

The branch office must appoint at least one Malaysian resident as an agent to represent the company and ensure compliance with Malaysian laws and regulations. (https://relinconsultants.com/register-company-in-malaysia/setting-up-branch-office/, https://malaysia.acclime.com/guides/branch-office/)

Securing Office Space

Obtain a physical office space that meets your business requirements and complies with local zoning laws. (https://landco.my/branch-office/)

Obtaining Business Licenses

Apply for the necessary business licenses and permits from relevant authorities based on your industry. (https://landco.my/branch-office/)

Tax Registration

Register for corporate income tax, GST/SST, and other applicable taxes with the Inland Revenue Board of Malaysia (IRB). (https://landco.my/branch-office/)

Compliance with Employment Regulations

Ensure compliance with Malaysian labor laws, including hiring practices, employee benefits, and workplace safety standards. (https://landco.my/branch-office/)

By following these steps and meeting the requirements, you can successfully establish and operate a branch office in Malaysia, allowing your foreign company to expand its reach and tap into the country’s growing market opportunities.

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