Establish a Branch in Malaysia
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Establish a Branch in Malaysia A presentation brought to you by CompanyIncorporationMalaysia.com 1
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Transcript of Establish a Branch in Malaysia
Establish a Branch in Malaysia
A presentation brought to you by CompanyIncorporationMalaysia.com
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Opening a branch in Malaysia
According to the legislation applicable in Malaysia, any foreign company is allowed to establish a branch here.
A branch is a legally dependent entity on the parent company, which can be opened in any other place.
This type of business is allowed to conduct businesses in Malaysia, usually representing a division of the entire company.
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Characteristics of a branch in Malaysia >>
When opening a branch in Malaysia, the entity will be fully dependent on the parent company, representing its interests on the Malaysian market.
The branch is seen as an extension of the parent company and it is not allowed to implement any business decisions without the consent of the main company.
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>> Characteristics of a branch in Malaysia
In the situation in which the branch incurred debts through its activity in Malaysia, the investors should know that the parent company will become fully liable for these debts.
A branch office in Malaysia will not be considered a tax-resident here.
As a consequence, the company will not be required to pay corporate taxes in Malaysia.
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Regulations for branches in MalaysiaForeign businessmen should also take into consideration the fact that the business can’t be a beneficiary on any tax exemptions available for other companies in Malaysia.
The rule is applicable to governmental incentives as well.
Our team of company registration representatives in Malaysia can provide more details on this matter.
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Register a branch in Malaysia >>
Although the branch is not liable to taxation in Malaysia, the company will still have to be registered at the Companies Commission Malaysia.
The procedure must be completed prior to starting the business activities here.
As a general rule, the branch must undertake business activities which are carried out by the parent company.
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>> Register a branch in Malaysia
From a management point of view, the legal requirements stipulate that a branch should be represented by two Malaysian residents.
Otherwise, the company formation procedure is handled following the same regulations available for other types of companies in Malaysia which can be set up by foreign investors.
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Types of companies in MalaysiaForeign investors who want to open a branch in Malaysia can choose from the following main types of legal entities:
• limited company;
• partnership;
• sole proprietorship.
Our team of specialists in company formation in Malaysia can offer more details.
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Subsidiary in Malaysia
Foreign investors should also know that they can set up a subsidiary in Malaysia, which is a type of legal entity entitled to perform its own investment policies.
The subsidiary is an independent business form.
More information related to the incorporation of a subsidiary is to be found in the Company Act.
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Consultancy services in MalaysiaForeign investors are advised to address to our consultants in company formation for any other aspect related to the registration of a branch.
For example, it is compulsory for companies in Malaysia to open a corporate bank account. Please mind that different regulations may apply, depending on the bank institution.
Investors may contact our team of company formation agents in Malaysia for other legal matters.
Thank you for your attention!
For more information please contact us at:
(+44)203-287 0408 (for international clients)
www.companyincorporationmalaysia.com
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