We invite you to explore this article for information about how to set up a branch in Malaysia in 2026. Our Malaysian agents are ready to assist you throughout the incorporation stages if you decide on this type of structure.
| Quick Facts | |
|---|---|
| Applicable legislation |
For foreign countries |
|
Best used for |
– banking, – insurance, – financial operations, – trading, – manufacturing |
|
Minimum share capital |
No |
| Time frame for the incorporation (approx.) |
Around 6 weeks |
| Management |
Local |
| Legal representative required |
Yes |
| Local bank account |
Yes |
| Independence from the parent company | Dependent on the parent company |
| Liability of the parent company | Full liability on the branch office’s debt and obligations |
| Corporate tax rate | 24% |
| Possibility of hiring local staff | Yes |
Table of Contents
What are the main features of a branch in Malaysia?
- it is an extension of a foreign company,
- it conducts the same operations as the foreign enterprise,
- it is not a separate legal entity,
- it operates under the same business name as the parent company,
- it is controlled by the parent company.
Can a branch be 100% owned by foreigners in Malaysia?
Yes.
What are the main conditions to set up a branch in Malaysia?
- verifying and reserving the business name,
- providing information about a registered business office/address in Malaysia,
- opening a bank account in Malaysia,
- registering for taxation with the Inland Revenue Board in Malaysia,
- obtaining the required approvals to set up the branch in Malaysia in 2026, etc.
Is a minimum share capital required for opening a branch in Malaysia?
No.
You may also explore this infographic with some of the benefits of branches in Malaysia:
What are the documents for opening a Malaysian branch?
A foreign company will need to provide the following:
- certified copy of the certificate of incorporation of the parent company that will be represented on the local market through a branch office;
- certified copies of the parent company’s main statutory documents –the company’s charter, memorandum, and Articles of Association;
- Form 79 – Return by Foreign Company Giving Particulars of Directors and Changes of Particulars;
- the power of attorney that can attest to the fact that the parent company has authorized a person living in Malaysia to accept various documents on behalf of the foreign company;
- copies of IDs/passports of shareholders of the branch in Malaysia.
IMPORTANT! All documents must be notarized and apostilled.
Where do I register a branch in Malaysia?
At the Companies Commission of Malaysia (SSM).
Do I need a representative agent to establish a branch in Malaysia?
Yes, an authorized person with residency in Malaysia is needed for a branch opening. He/she will deal with the document preparation and various procedures.
Is a business license necessary for a branch in Malaysia?
Absolutely, according to the future activities of the branch in Malaysia.
More details on the characteristics of a branch in Malaysia are available in the presentation below:
Are there any extra requirements to establish a branch in Malaysia?
Yes, it is required to appoint a branch manager before starting the operations. He or she can be of any nationality.
Who is liable for a branch in Malaysia?
The foreign company is liable for the debts and obligations of the branch in Malaysia.
Does the branch need to file annual returns in Malaysia?
Yes, branches operating here are legally required to provide standard accounting documents. One of the documents that needs to be filed in this case is the annual return, a type of document that provides information concerning the company on matters such as its registered office in Malaysia, types of business activities developed here, the company’s capital, and the company’s representatives.
What is the taxation of a branch in Malaysia?
24% corporate tax is applied on income generated in Malaysia.
Is the profit transfer of a branch in Malaysia levied?
No, there is no withholding tax applied on the branch profit transferred to the foreign company.
What is the registration fee for opening a branch in Malaysia?
Around RM 70,000.
How long does it take to register a branch in Malaysia?
Around 3-6 weeks.
What are the benefits of a branch in Malaysia?
- fast registration compared to subsidiaries,
- full control in operations,
- no minimum capital required at the time of incorporation,
- protected by the double taxation agreements signed by Malaysia with countries worldwide,
- debts and liabilities are covered by the parent company,
- can be established in any business sector in Malaysia,
Interested in more about how to open a branch in Malaysia in 2026? Feel free to contact our experts in company formation in Malaysia and get the details you need.