What is a Branch Office?

When foreign companies expand into Malaysia, they have several options, including:

Registering a Private Limited Company (Sdn. Bhd.)
Setting up a Subsidiary
Establishing a Branch Office

Among these, a Branch Office is a direct extension of the foreign parent company rather than an independent legal entity.
Key Features of a Branch Office in Malaysia:

Not a Separate Legal Entity – It operates as an extension of the foreign company.

Same Business Activities as the Parent Company – A branch cannot engage in activities outside the parent company’s scope.

Foreign Company is Liable for Debts – Since it’s not independent, the parent company bears full responsibility for its obligations.

Decisions Require Parent Company Approval – The branch has limited autonomy in making strategic decisions.

While a Branch Office provides a way to expand operations quickly, many businesses prefer setting up an Sdn. Bhd. or a Subsidiary for greater flexibility, tax benefits, and liability protection.


分公司（Branch Office）

外国公司在马来西亚开拓市场时有几种方法，其中最普遍的就是在这里开设公司（Sdn Bhd）、子公司（Subsidiary）或分公司（Branch Office）。这些看似一样的公司类型，实际上所遵守的条规都是不一样的哦！

分公司（Branch Office）与普通公司有极大的不同，他们作为母公司的左右手，却不在法律上属于一个独立个体。因此，他们所经营的活动需要跟母公司完全相同，所作的决定需要通过母公司批准，可以说是国外母公司在马来西亚的一个延伸。

此外，由于他们不属于一个独立个体，所有的债务都会需要由母公司承担。

虽然分公司可以快速扩大业务，但许多企业更愿意设立私人有限公司或子公司，以获得更大的灵活性、税收优惠和责任保护。