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Liaison Office in Malaysia

Liaison Office in Malaysia

Foreign businessmen who are interested in the business opportunities which can arise in Malaysia can establish here a liaison office, which is also referred to as a representative office in Malaysia. The activities carried out under a liaison office in Malaysia are useful for the head office of the company. Entrepreneurs who need further information on the representative office in Malaysia can address our company incorporation representatives in Malaysia

 Quick Facts  
 The purpose of a liaison office in Malaysia Representing the business interests of a foreign company in Malaysia 

What activities can you undertake with a liaison office in Malaysia? 

–  research and development activities,

– marketing and promotion,

– connecting the parent company with potential business clients in Malaysia

How can a representative office be registered in Malaysia? 

– preparing a copy of the parent company’s certificate of incorporation,

– completing standard forms with the purpose of establishment and activities,

– preparing the latest annual reports of the foreign company,

– presenting tenancy contract 

 Can a liaison office in Malaysia have commercial activities? (YES/NO) NO 
Contacting potential clients and partners (YES/NO) 


Local agent required (YES/NO) 


 Attributes of a liaison officer

– promoting the business activities of the foreign company,

– contacting potential customers,

– negotiating contracts,

– communicating with the parent company 

 Bank account for a liaison office in Malaysia

For varied payments in Malaysia, financed by the parent company 

 Operational costs to set up a liaison office in Malaysia

Around USD 71,000 per year 

 The institution that authorizes the liaison office in Malaysia  Malaysian Investment Development Authority (MIDA)
 Who financially sustains a representative office in Malaysia?

The parent company 

 Corporate tax for a liaison office in Malaysia

No corporate tax is imposed, as a liaison office in Malaysia does not have commercial activities. 

Licensing requirement 

Not solicited 

Time frame for opening a liaison office in Malaysia 

Around 30 days 

 Why choose our company formation agents in Malaysia?

 – experience in business formation,

– professionalism,

– efficiency,

– affordable prices for complete services

Characteristics of a liaison office in Malaysia  

Those who want to set up a liaison office in Malaysia should know that this type of business establishment does not require incorporating the company following the provisions of the Companies Act 1965, as the office will not carry out commercial activities in Malaysia

Investors are invited to watch the video below, which presents how to set up a liaison office in Malaysia:

representative office is funded from non-local sources. For the registration of the representative office in Malaysia, you will need the approval of the Malaysian government. The main purpose of a representative office is to collect information useful for the main company, establish business relations with local and foreign partners and conduct research and development services; our team of company formation specialists in Malaysia can offer further details. 

Activities carried out through a Malaysian liaison office 

The local legislation prescribes only a few types of activities that can be conducted through a liaison office. The main activities refer to the following: 

  • planning business activities;
  • gathering information for possible business opportunities and investments in the local market;
  • conducting feasibility studies;
  • research and development studies;
  • coordinating the activity of the company’s subsidiaries;
  • other activities which do not refer to commercial transactions. 

Those who want to start a business in Malaysia can do so by choosing the right structure for their activities. Among them, the most used and appreciated is LTD or limited liability company, which can be registered with 1 USD and one shareholder. As for the formalities, they can be successfully managed by one of our local agents. Opening a bank account, drawing up documents as well as registering for the payment of taxes are among the necessary formalities in this regard.

Below is an infographic with details about liaison offices in Malaysia:

The main attributes and responsibilities of a representative officer in Malaysia

Having a liaison office in Malaysia requires a representative officer who can be local or from another country. He/she must know the business direction of the company he/she represents in order to be able to implement the operations imposed by the head office. Here are other important aspects of a representative officer in Malaysia:

  • Communication is important in order to establish business relationships. A good representative office should know how to promote the activities of the company in question.
  • International business relations knowledge is important for a liaison officer in Malaysia. In addition, the experience accumulated over time can only be to his advantage when developing business relationships.
  • A liaison officer must report everything related to his activities and efforts in Malaysia to the parent company. If other business tools are recommended for business expansion, they can be used immediately.
  • A good liaison officer must also have the skills to mediate conflicts if these intervene during the promotion of the respective business.
  • The conclusion of collaboration contracts and the development of business relations with clients in Malaysia are other responsibilities of a liaison officer.

Those interested in company incorporation in Malaysia, including a liaison office can confidently call on our specialists. They can manage everything related to formalities and registration procedures, in compliance with the legislation applicable in this country, both for local and foreign entrepreneurs.

Financial support for the liaison office in Malaysia

In Malaysia, a representative office cannot undertake commercial activities to generate income and profit. The purpose of the liaison office in Malaysia is to contact potential clients on the market and promote the business of the represented company. In this sense, the expenses are borne by the parent company. This can budget marketing and promotion projects, as well as other business plans for Malaysia. In this sense, all expenses must be justified with the help of invoices to be sent to the head office for accounting.

What taxes does a representative office in Malaysia pay?

As specified in this article, a liaison office in Malaysia cannot have economic operations, cannot issue invoices or generate income and profits. As a result, this business structure is not subject to the taxation regime in Malaysia. On the other hand, if the representative office in Malaysia makes purchases in this country, they may contain standard sales and services tax or SST, the equivalent of VAT, which must be paid. Such purchases are accompanied by invoices that must be kept for accounting purposes. We recommend here the services of our accountants in Malaysia.

Here are some statistics about Malaysia’s economy:

  • The 4th quarter of 2022 registered an economic growth of 7%.
  • The best economic performance was in the 4th quarter of 2022, with the unemployment rate decreasing to 3.6%.
  • The net FDI registered in the same quarter of 2022 was around RM 19.3 billion.
  • The growth of the economy by 8.7% in 2022 is the highest in the last 22 years in Malaysia.

Investors who need further information on the registration of a liaison office in Malaysia can address our team of company formation agents in Malaysia for assistance.