For simpler or more direct business activities that need to be the same as that of the parent company, a branch may be a more advantageous choice for obvious reasons that it’s simpler and less costly to setup. Companies such as banks and insurance companies usually choose to enter the Malaysian market by opening a branch.

However, for companies that wish to enter into more complex business activities, be involved in distributive trade and not bear liability for their Malaysian counterpart, the subsidiary is the legal entity that will allow for these advantages.