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Corporate Service - Malaysia

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Q&A on Maintenance of Representative Office in Malaysia

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Q: Is the Representative Office required to maintain a registered office address?
A: A representative office is required to establish an office within three (3) months from the date of approval and notify MIDA within 14 days of establishment of the office.

Q: Can a Representative Office sign contracts with customers in Malaysia?
A: A Representative Office is not permitted to enter into business contracts on behalf of the foreign parent company for the sale of goods or services or engage in any revenue generating activities in Malaysia. All commercial contracts must be executed by the foreign parent company.

Q: Is a Representative Office required to submit any reports to MIDA?
A: A copy of the certified Annual Audited Account shall be submitted to MIDA showing that the operating expenditure of at least RM300,000 annually has been incurred.

Q: Can a Representative Office hire foreign expatriate?
A: Yes, however the expatriate can only be hired for the managerial and technical posts only. It is recommended that the staffing composition of the Representative Office reflects an ideal ratio of two (2) expatriates to one (1) Malaysian employee.

Q: Can the Representative Office be renewed?
A: The Representative Office shall apply for the extension at least three (3) months before the expiry date and the approval is subject to MIDA’s discretion.

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