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.