(RE RO – 10.3.2009)
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.
(RE RO)
An approved representative office/regional office is allowed to carry out
the following activities:
-
3.
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
Activities Not Allowed
However, an approved representative office/regional office is not allowed
to carry out the following activities:
-
4.
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
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.
(RE RO)
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 of two-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:
6.1
An 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
Fax
E-mail
Website
6.2
: (603)2267-3633
: (603)2273-4216
: investmalaysia@mida.gov.my
: www.mida.gov.my
An 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
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(RE RO)
(ii)
b.
Other relevant information that can support the
company’s application such as company profile and
brochures.
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)
(ii)
(iii)
c.
A copy of the last one (1) year’s activity report
Tenancy Agreement
EPF contribution slips (if employing Malaysians).
RE/RO-3
Application for Additional/Replacement of Expatriate for
a Representative Office/Regional Office
6.3
Details 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)
(ii)
(iii)
6.4
Certified true copy of passport containing particulars of the
expatriate;
Curriculum Vitae of the expatriate to be employed; and
Certified Academic Qualification of the expatriate.
For application related to banking and financial services, please
contact Bank 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
: www.bnm.gov.my
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(RE RO)
6.5
For 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 : www.motour.gov.my
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