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The time now is Sun Nov 08, 2009 9:56 pm
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Expatriate Forums in Malaysia -> Malaysia Business Networking : Trading, Investing & Finance -> Setting up a Representative/Regional Office
Setting up a Representative/Regional Office Post new topic
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milad




Age: 26
Zodiac: Capricorn
Joined: 08 Sep 2006
Posts: 5

Home Country: thailand
   

PostPosted: Sun Sep 17, 2006 7:07 pm    Post subject: representatve office Reply with quote

thanks for yr reply.but i need to inform u guys that we are not planning to earn any income .the fact is we are into electronic industry and the point is we just want to get to know the malaysian market and collaborate with malaysian companies thats why representative office is the best choice and doest need we bring any capital in malaysia.our activity will be limted to research thats all.and i will be in charge of the office as manager or coordinator or whatever ....do i need to be 27 years old to get work permit?even if MIDAapprove our application.? Question
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sixpaq



Gender: Gender:Male
Age: 42
Zodiac: Aries
Joined: 05 Oct 2006
Posts: 9
Location: Kuala Lumpur
Home Country: usa
   

PostPosted: Thu Oct 05, 2006 6:37 am    Post subject: Reply with quote

Hi everyone. I've read through this post and am still a little baffled. I am in the process of hiring two people in Malaysia to do programming work for my US-based consulting company.

All of my jobs are booked in the US (at least currently) so do I need to set up a representative office in Malaysia since I'll have some of my workforce based there? Can I simply set up an office in KL and wire them their salary?

SP
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Strong Eagle



Gender: Gender:Male
Age: 60
Zodiac: Scorpio
Joined: 11 Aug 2005
Posts: 10

Home Country: singapore
   

PostPosted: Thu Oct 05, 2006 6:53 am    Post subject: Reply with quote

sixpaq wrote:
Hi everyone. I've read through this post and am still a little baffled. I am in the process of hiring two people in Malaysia to do programming work for my US-based consulting company.

All of my jobs are booked in the US (at least currently) so do I need to set up a representative office in Malaysia since I'll have some of my workforce based there? Can I simply set up an office in KL and wire them their salary?

SP


You will need to set up either a rep office or an Sdn Bhd (private limited). Then you can open a bank account and wire funds to it to pay your employees. You will also have to pay employer contribution of EPF (12 percent) and handle income tax withholding.
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polarbear






Joined: 07 Oct 2006
Posts: 1

Home Country: singapore
   

PostPosted: Sat Oct 07, 2006 9:47 pm    Post subject: Reply with quote

Strong Eagle wrote:
I looked long and hard into a rep office and finally gave up. Even though it seems to be allowed by law, there seems to be no forms or process for actually setting one up.

I ended up setting up an Sdn Bhd (private limited) company, with two Ringgit worth of shares, held by my Singapore company.

The effect is the same. As long as anybody who goes to Malaysia to conduct business is paid out of Singapore, I have no Malaysia salary expense, and hence, no need for work permits, etc.

I originally thought I might have to bill through by Malaysia company but I have set all my contracts out of Singapore, with the Singapore entity of my client companies so that I have no Malaysia transactions. If you do have Malaysia transactions, the corporate tax rate is high.


Hi. I belong to a company in Singapore planning to expand into Malaysia as well. Are you able to recommend the agent who helped you with the company incorporation process? It will be great if you can advise on the cost structure as well.

Thank you. Smile
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sixpaq



Gender: Gender:Male
Age: 42
Zodiac: Aries
Joined: 05 Oct 2006
Posts: 9
Location: Kuala Lumpur
Home Country: usa
   

PostPosted: Thu Oct 12, 2006 8:52 am    Post subject: agent recommendation Reply with quote

Ditto for me. Strong Eagle - can you pass along the name of the agent you used?

SP
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snickers






Joined: 25 Dec 2008
Posts: 2

Home Country: NULL
   

PostPosted: Thu Dec 25, 2008 12:56 am    Post subject: Reply with quote

1. Are Regional/Rep offices separate legal entities? What is its legal standing?
2. If it is not a separate legal entity, who bears the RO's liabilities in Malaysia?
3. Can it enter into contracts (non-business contracts)? for example, contracts for provision of services, lease for premises, purchase of equipment, etc.
4. If it can enter into such contracts, will it enter into the contract in its name or in the name of the parent company?
5. How does it compare to a rep office in Singapore?
6. Can an RO employ staff (local and foreign)?

I can't seem to find any official rules or regulations on ROs in Malaysia other than a brief guideline from MIDA website. Is that all that is available to inform the public on what ROs can or cannot do? Are there any laws or regulations regulating the RO, or is it basically up to MIDA to decide on an ROs activities, powers, business scope, etc.?
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snickers






Joined: 25 Dec 2008
Posts: 2

Home Country: NULL
   

PostPosted: Thu Dec 25, 2008 1:28 am    Post subject: Reply with quote

I have more questions:

1. Can the RO open a bank account in Malaysia in its name?
2. Is there a capital requirement for establishment?
3. I understand a regional office and representative office has different activity scope. However, is it possible for it to be both a regional office and representative office?
4. Aside from the prescribed activities, are there any other differences to both forms of offices?
5. What is the approval process for ROs in Malaysia and what documents would an RO be issued upon establishment?

Thanks!
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oceanser



Gender: Gender:Male
Age: 38
Zodiac: Taurus
Joined: 16 May 2009
Posts: 1

Home Country: malaysia
   

PostPosted: Sat May 16, 2009 3:09 am    Post subject: "Ready to work" office set up for sale Reply with quote

Have a sdn. bhd. with a paid up capital of RM1mil for sale with a fully furnished office complete with a well equipped board room, 3 directors rooms, 3 glass partitioned rooms, 16 cubicles work area, a well equipped pantry and a storage/server room. Total area is approx 4,000 sq ft.

Its located in central KL with a stunning KLCC view from the boardroom and directors rooms. View to appreciate...

It also comes with a corporate Maybank checking account.

You can just bring your briefcase in and start working!
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JurAn






Joined: 31 May 2009
Posts: 2

Home Country: uzbekistan
   

PostPosted: Sun May 31, 2009 10:20 pm    Post subject: Reply with quote

hello everyone,

I have a company in Uzbekistand and would like to open a rep.office in Malaysia.
i read through the topic and if i figured that right,

1) I will have to get an approval from MIDA and get a work permit which is given for 2 years. Can i do that online?

2) afterwards, i can finally register a company.

can anyone suggest what agencies can help me do that? and again, can i do that from outside of Malaysia online?

thank you
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basiclevel



Gender: Gender:Male


Joined: 26 Jul 2006
Posts: 46
Location: Penang
Home Country: malaysia
   

PostPosted: Tue Jun 02, 2009 8:35 pm    Post subject: Reply with quote

JurAn wrote:
hello everyone,

I have a company in Uzbekistand and would like to open a rep.office in Malaysia.
i read through the topic and if i figured that right,

1) I will have to get an approval from MIDA and get a work permit which is given for 2 years. Can i do that online?

2) afterwards, i can finally register a company.

can anyone suggest what agencies can help me do that? and again, can i do that from outside of Malaysia online?

thank you


You may visit mida website at http://www.mida.gov.my/ for more information.

Depending on which state you want to set up sdn bhd. Go to the nearest MIDA office and the officer will help you.
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