What is a
Representative Office?
Representative Office & Regional Office
What’s the difference?
Representative Office
A Representative Office is an office of a foreign company / organisation 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).
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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.
Permissible
Activities
- 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
- 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
Non-Permissible Activities
The approved Representative Office / Regional Office is not allowed to conduct the following activities:
- 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
Eligibility
- The operational expenditure of the Representative Office / Regional Office must be at least RM300,000.00 per annum. Nevertheless, upon approval, the condition imposed will be based on the operational expenditure as proposed by the Representative Office / Regional Office.
- The Representative Office / Regional Office should be financed by funds emanating from sources outside Malaysia.
Duration of Establishment
- Company and Others (including non–profit organisations not relating to trade)
- Government and Trade Association
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SCALEUP CORPORATE SERVICES SDN. BHD.
Reg No.:200701039771(797803-P )
