Register of a Subsidiary or a Branch in Malaysia

A foreign company wishing to establish a place of business to conduct trading and commercial activity directly in Malaysia is required to register a branch office or a subsidiary.

1. Branch Office

A Branch Office does  not  constitute  incorporating  an  entirely  new company  and  does not create a separate legal entity in Malaysia.

It is a form of business operation for a foreign company which is only operating on a short-term basis compared to the incorporation of a local company.

A foreign company is not allowed to register a Branch Office to carry out wholesale and retail  trade  business. All  wholesale  and  retail trade  business  with  foreign interests must operate  through a locally incorporated company.

2. Subsidiary

A foreign company can establish a Sendirian Berhad (private company limited) in Malaysia.

A Sendirian Berhad (aka. Sdn Bhd) may be 100% owned by a foreign parent company.

Generally, a foreign company is required to have minimum issued paid-up capital of at least RM500,000 (approximately USD115,000) before applying for work visas. Certain industries including education, petroleum, banking and finance, tourism, agriculture and certain trades are regulated and cannot be wholly foreign owned.

The registration of a Sdn Bhd is a two stage process. Initial application is made to the Companies Commission Malaysia (CCM) to check the availability of the business name. On making the application for name approval the parent company is required to provide various documentation, including a consent letter and certified copy of the parent’s certificate of incorporation).

When name approval has been granted, application may be made for incorporation. The application is submitted with supporting documentation. The processing time is usually two weeks from the name search of the company to the issuance of the Certificate of Incorporation by the registrar.

The registration fees payable to the CCM are based on the authorized capital (between RM1,000 to RM70,000 - approximately USD230 to USD16,000). 

For  the purpose  of  incorporation,  the  company would require to provide  two  (2) resident directors  and two (2) shareholders (which can be two (2) individuals or two  (2)  corporations  or  an  individual  with  a  corporation).  A  resident  director could be a Malaysian or foreigner who has a residential address in Malaysia.
SSM  will  usually  require  two  (2)  weeks  to  approve  and  issue the Certificate  of Incorporation  (Form  9)  and  the  company  can commence  business  immediately with the Certificate.

A company with paid-up capital of RM2.5 million or less, is taxed at the following rates:

  • 20 % on the first RM500,000
  • 25% above RM500,000
​January 2016
Any further inquiries, please contact us.