Representative Office Set up

A representative branch office of an foreign company can be registered with the Ministry of Industry & Development Authority for the purpose of research & development, marketing and sales support services.

The difference between a private limited company and a representative office are :-

Representative office	VS.	Private Limited Company
- Cheaper & easier to set up		- Initial set up cost > RM3500
- Cheaper to maintain yearly. Yearly submission of financial statements to Government authority		- Annual statutory accounting records and secretarial records, audit and tax returns must be submitted to the Registrar of Companies - average annual costs > RM3,000
- Cannot formally do trading or conduct business transactions; can only market services and products		- Can transact business
- Work permit can be obtained without any limitations for share capital		- Work permit can only be obtained with a initial paid up share capital of RM250,000 if not married to a local
- Set-up valid for maximum of 5 years after which you will have to set up a local Pte. Ltd. company

LEAD TIME
Approvals are normally given based on sufficient supporting documentation for substantiating the existence of a representative office. The process normally takes just over a month provided that all relevant documentation have been submitted.