If you would like to set up a representative office (RO) in Malaysia in 2026, this article can help you. Please review this information, then reach out to our specialists in company formation in Malaysia for personalized support and guidance.
| 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) | YES |
| Local agent required (YES/NO) | YES |
| 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 |
| A liaison office is also known as | Representative office (RO) |
Rental contract required (YES/NO) | YES |
Duration of a liaison office in Malaysia | At least 2 years, but no more than 5 years in the case of government institutions. In certain cases, the period can be extended. |
| Feasibility studies permitted (YES/NO) | YES |
| Formal management body | Not required |
| Research and product development | Allowed with a liaison office in Malaysia |
| Sectors of interest for a liaison office | Social, education, business, economy, etc. |
| Shipment storage of products in Malaysia | Not possible through a liaison office |
| Founding a liaison office in Malaysia from local sources | Forbidden |
| Knowing the business direction | Required for a liaison officer in charge of business promotion |
| Mediating conflicts | The responsibility of the liaison officer in Malaysia |
| Justifying the expenses of the liaison office in Malaysia | With invoices |
| Borrowing or lending money through a liaison office in Malaysia | Not permitted |
| Reporting requirements | Only to the parent company that established a liaison office in Malaysia |
| Advantages of a liaison office in Malaysia | Great for business advertising, fast incorporation, simple formalities, no taxation |
Table of Contents
How is a representative office known in Malaysia?
- Liaison office,
- Regional office.
Who approves a liaison office in Malaysia?
The Malaysian Investment Development Authority (MIDA).
What is the key condition to open a representative office in Malaysia?
To have minimum annual operational expenses of RM 300,000, covered by the foreign company setting up a liaison office in Malaysia.
Can a liaison office generate income in Malaysia?
No.
Below is an infographic with details about a liaison office in Malaysia:
Can a representative office in Malaysia develop import and export activities?
No.
What types of activities can a regional office in Malaysia have?
- Market research,
- Advertising and promotion for the foreign company,
- Feasibility studies & report,
- Gathering market data,
- Managing regional operations,
- Getting in touch with local partners, etc.
What are the documents required to open a liaison office in Malaysia?
- a declaration from the foreign company stating that a liaison office,
- the Certificate of Incorporation of the company in question, plus information about the business profile,
- audited financial statements for the last 2 years,
- completed MIDA application form with details about the targets, assumed local benefits, and relocated staff,
- copy of the lease contract, etc.
NOTE: If you expatriate staff from the country of origin to Malaysia when opening a liaison office, you will be required to present valid passports, educational documents, and employment history.
Investors are invited to watch the video below, which presents how to set up a liaison office in Malaysia:
What happens after MIDA approves the liaison office in Malaysia?
The regional office must be registered with the Companies Commission in Malaysia (SSM).
Do I need to register the liaison office for tax purposes in Malaysia?
No.
Do I need special business licenses and permits to set up a representative office in Malaysia?
Not required.
Are there any payroll requirements when opening a regional office in Malaysia?
The company’s staff must be registered with the Employees Provident Fund and the Social Security Organization in Malaysia.
Is there a specific management required for a liaison office in Malaysia?
No.
Are there any reporting requirements for an RO in Malaysia?
The liaison office in Malaysia will report only to the foreign company.
What is the timeframe to set up a representative office in Malaysia?
About 4-8 weeks.
What is the duration of a liaison office in Malaysia?
At least 2 years.
Are the administrative costs for a liaison office in Malaysia expensive?
The costs for opening a representative office in Malaysia are relatively low and are borne by the parent company.
Please get in touch with our company incorporation agents in Malaysia for further information on opening a liaison office in the country in 2026. On the other hand, you can engage our CPA in Malaysia to help set up a company.