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Opening a Branch of a Malaysian Company in Another State


Opening a Branch of a Malaysian Company in Another State | Bestar
Opening a Branch of a Malaysian Company in Another State | Bestar


Opening a Branch of a Malaysian Company in Another State


To expand your business to other states in Malaysia, you can open a branch of your existing Malaysian company. A branch is an extension of your company and does not have a separate legal entity. This means that your company will be responsible for all the debts and liabilities of the branch.


Steps to Open a Branch


The following are the steps to open a branch of your Malaysian company in another state:

  1. Choose a location: Decide where you want to locate your branch. Consider factors such as the cost of rent, the availability of labor, and the proximity to your target market.

  2. Appoint a local representative: You will need to appoint a local representative who is a resident of Malaysia. This person will be responsible for managing the branch and ensuring that it complies with Malaysian laws and regulations.

  3. Register your branch with the Companies Commission of Malaysia (SSM): You will need to register your branch with the SSM by submitting the Lodgment of Notification of Additional Branch Address. Where a company has resolved to add a branch, the company is required to notify SSM within 14 days from the date of such additional address.

  4. Open a corporate bank account: You will need to open a corporate bank account for your branch. This account will be used to conduct all the financial transactions of the branch.

  5. Comply with local laws and regulations: You will need to comply with all the local laws and regulations that apply to your business. This includes obtaining the necessary licenses and permits, paying taxes, and complying with labor laws.

Additional Considerations


In addition to the above steps, you should also consider the following:

  • The tax implications of opening a branch: You will need to consult with a tax advisor to determine the tax implications of opening a branch in another state.

  • The need for insurance: You should obtain adequate insurance to protect your business from risks such as fire, theft, and liability claims.

  • The staffing of your branch: You will need to decide whether to hire new staff or transfer existing staff to your branch.

Opening a branch of your Malaysian company in another state can be a great way to expand your business and reach new customers. However, it is important to carefully consider the steps involved and to obtain the necessary legal and financial advice.


How Bestar can Help

Opening a Branch of a Malaysian Company in Another State


Bestar can help with opening a branch of a Malaysian company in another state in the following ways:

  1. Company Secretarial Services: Bestar can provide company secretarial services to help you with the registration of your branch with the Companies Commission of Malaysia (SSM). This includes preparing and submitting the necessary documents, and liaising with the SSM on your behalf.

  2. Tax Advisory Services: Bestar can provide tax advisory services to help you understand the tax implications of opening a branch in another state. This includes advising you on the taxes that you will be liable for, and helping you to prepare and file your tax returns.

  3. Accounting and Bookkeeping Services: Bestar can provide accounting and bookkeeping services to help you manage your finances. This includes setting up a corporate bank account for your branch, tracking your income and expenses, and preparing your financial statements.

  4. Immigration Services: Bestar can provide immigration services to help you obtain the necessary visas and work permits for your employees. This includes advising you on the immigration requirements for your employees, and helping you to prepare and submit the necessary applications.

  5. Compliance Services: Bestar can provide compliance services to help you ensure that your branch is complying with all the local laws and regulations. This includes obtaining the necessary licenses and permits, and ensuring that your branch is compliant with labor laws.

By outsourcing these tasks to Bestar, you can free up your time and resources to focus on running your business. Bestar has a team of experienced professionals who can provide you with the expert advice and support that you need to open a branch of your Malaysian company in another state successfully.


In addition to the above, Bestar can also provide you with the following services:

  • Due diligence: Bestar can conduct due diligence on potential locations for your branch. This includes assessing the economic conditions of the area, the availability of labor, and the competition from other businesses.

  • Business plan development: Bestar can help you to develop a business plan for your branch. This includes defining your target market, your marketing strategy, and your financial projections.

  • Market research: Bestar can conduct market research to help you understand the needs and preferences of your target market. This information can be used to develop your product or service offering, and to develop your marketing strategy.

Contact Bestar today!





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