Branch Office Registration in Malaysia
subjected to 6% Service Tax
|Branch Office Setup in Malaysia *||RM 8,000|
|Annual Branch Office Services||RM 1,200|
* excluding share capital registration fee and other out-of-pocket expenses.
Registration fees shall be as per the payment schedule below:
|WITH SHARE CAPITAL (RM)||FEES (RM)
subjected to 6% Service Tax
|Up to 1,000,000||5,000|
|1,000,001 – 10 Million||20,000|
|10,000,001 – 50 Million||40,000|
|50,000,001 – 100 Million||60,000|
|Exceeding 100 Million||70,000|
1. In determining the registration fees, the nominal share capital either authorised or paid up of the foreign company should first be converted to the Malaysian currency (Ringgit Malaysia) at the prevailing exchange rate.
2. In the event a foreign company does not prescribe any share capital, a flat rate of RM70,000.00 shall be paid to SSM.
3E Accounting could help you setting-up your branch office in Malaysia. Please note that branch office set-up is more appropriate form of business operation for foreign company which is only operating in Malaysia on a short term basis and not carrying wholesale and trade retail businesses. The branch office of foreign company is also required to have at least one (1) person resident in Malaysia to be authorised agent in Malaysia to accept on its behalf service of process and any documents required to be served on the company. The appointed agent shall be answerable for the acts, matters and things, as are required to be done by the foreign company under the Companies Act and be personally liable for all penalties imposed on the foreign company for any contravention of the Companies Act.
Note that most small and midsized foreign companies register subsidiaries in Malaysia rather than setting up a branch office or representative office. To explore your other options, see foreign company setup options in Malaysia.
The estimated cost of setting a local branch office is RM8,000 excluding share capital registration fee and other out-of-pocket expenses. Meanwhile, our annual branch office service fee is at RM1,200 per annum.
Our Annual Branch Office Service Package provides:
- Maintaining the Branch Office Registers and Statutory Record
- Provision of registered office address *
- General advisory on branch office/compliance/accounting/tax matters
- Monitoring and ensuring compliance with relevant legal requirements, particularly under the Companies Act and Income Tax Act. Regular compliance alert via email and call.
* The use of 3E’s office premise as your Branch Office’s Registered Address is for fulfilment of statutory requirements under the Companies Act whereby all the Registers and Statutory Record shall be kept and accessible to the public. Hence, it is common practice that the registered address shall be an office address. Please note that the provision of registered address is already included as part of our annual branch office services package. Kindly remind that our registered address services is not allowed for license application purpose. It is a mandatory requirement to have a physical premise for license application and the relevant authority will request for the supporting documents from the applicant to verify that the applicant is operating at the said physical premise.
Provision of Registered Office Address Includes:
- Statement of letter is available upon request
- Free Incoming General Fax Services (Local outgoing fax-RM1 for each page, Overseas outgoing fax-RM2 for each page)
- Free Scanning letter services upon request
- Free daily letter/parcel notifications via email
- Self-collection of mail and parcels between Monday – Friday: (9am to 6pm) (no handling fee)
- Receipt of normal mails, air mails, parcels (below 3 kg) or registered mails *
- Mail forwarding / Courier arrangement to a local / overseas address on daily / weekly / monthly basis is available (Service fee of RM 1 is applied for each forwarding)
* Approval must be obtained for any bulky items / parcels (especially it is more than 3 kg) sent to the registered office address. Daily handling fee and storage fee is applied.
Please note that Non Routine Branch Office Service such as change of local agent and etc will be charged on case by case basis.