Finding an office or factory in Malaysia as a foreign investor

In short: Every Malaysian company needs a registered office under section 46 of the Companies Act 2016, but that address is not the same as premises you can trade or manufacture from. Licences, ESD registration and banks usually expect genuine premises with a tenancy or purchase agreement, and a factory must also suit the land use, building approvals and any manufacturing licence. Paul Hype Page does the groundwork: searching, shortlisting and checking that premises suit your licences and zoning, while we continue to provide your registered office.

Registered office versus operating premises

Section 46 of the Companies Act 2016 requires every company to have a registered office in Malaysia, to which communications and notices may be addressed. The company’s statutory records are kept there. Paul Hype Page provides the registered office as part of our Malaysia company secretary services. Source: MIDA, Establishing your business presence in Malaysia.

A registered office meets the Companies Act requirement. It does not usually satisfy authorities that need to see where the business actually operates. A virtual office alone is usually not enough for a WRT licence, ESD registration, a corporate bank account or a local council business premises licence.

What authorities and banks look for

• ESD. The company registration checklist for hiring expatriates includes a tenancy agreement or sale and purchase agreement, a company phone bill and a local authority (PBT) licence where applicable. Source: ESD company registration FAQ.
• KPDN. Foreign-owned distributive trade companies are expected to comply with local authority by-laws and regulations, and KPDN approval is needed for opening, relocating or expanding outlets. Source: KPDN GP2022 guidelines.
• Local authority (PBT). Many activities need a business premises licence from the local council, which checks that the use suits the premises.
• Banks. Many banks want to see a genuine business address as part of their customer due diligence. See how to open a corporate bank account in Malaysia.

Extra checks for a factory or warehouse

Industrial premises need more checks than an office. Before you sign, it is worth confirming:

• Land use and planning. The land’s category of use and the planning approval must permit your activity. A property marketed as industrial may still be restricted to certain uses.
• Building approvals. The building should have its Certificate of Completion and Compliance (CCC) or an equivalent occupation approval, and any renovation needs approval from the local authority.
• Fire safety. Depending on their size and use, some premises need a fire certificate from the Fire and Rescue Department of Malaysia (Bomba) under the Fire Services Act 1988.
• Environmental and safety approvals. Certain processes need approvals from agencies such as the Department of Environment before operations start.
• Manufacturing licence. Under the Industrial Co-ordination Act 1975, manufacturing companies with shareholders’ funds of RM2.5 million or more, or 75 or more full-time paid employees, must hold a manufacturing licence. Applications go to MIDA. Smaller companies can apply to MIDA for an exemption.

Sources: MIDA, Approval and Licensing and Bomba, fire certificates. The exact list depends on the state, the local authority and your process, so confirm it for each shortlisted property.

Industrial parks and free zones can simplify some of these questions. See our guide to free trade zones in Malaysia.

Renting or buying: state consent and lease terms

Most foreign investors start by renting. Keep in mind:

• Tenancy or lease. Under the National Land Code, a tenancy is generally for up to three years, while a lease of more than three years is registered. Read our guide to tenancy and leases in Malaysia.
• State consent. Section 433B of the National Land Code requires State Authority approval before a non-citizen or a foreign company acquires land or an interest in land. For this purpose, a Malaysian company with 50% or more of its voting shares held by non-citizens or foreign companies counts as a foreign company. Buying premises, and some registered long leases, can therefore need consent. Sabah and Sarawak have their own land laws.
• Deposits. Foreign tenants are often asked for larger deposits, so build this into your cash-flow plan.

Source: National Land Code (Act 828), sections 433A–433B, on the Attorney General’s Chambers laws portal.

Common mistakes to avoid

• Signing a lease before checking that the land use and the local council will allow the activity.
• Choosing a shared or virtual address, then finding that ESD, KPDN or the bank will not accept it.
• Assuming a building has its CCC or fire certificate without seeing the documents.
• Overlooking state consent when buying premises or taking a registered long lease through a foreign-controlled company.
• Leaving deposits and fit-out out of the cash-flow plan the bank will review.

How Paul Hype Page does the groundwork

Paul Hype Page does the groundwork for an office or factory search, so that the premises support your licences rather than hold them up:

1. Brief. We confirm your activity, the licences it needs, headcount, power and loading needs, and preferred locations.
2. Search and shortlisting. We search and shortlist offices, shops, warehouses or factories, and arrange viewings with a registered property agent.
3. Suitability checks. We check that each shortlisted property suits the licences and zoning involved, and flag when state consent or extra approvals may be needed.
4. Paperwork. We gather the tenancy papers ESD, KPDN and the local authority commonly need, and help you plan deposits.
5. Applications. We file the licence and ESD applications once the premises are secured.

Your registered office stays with us under section 46 throughout. Finding a property, and whether a landlord, bank, licensing authority or ESD accepts it, is not guaranteed. See our Malaysia business licensing services.

How premises fit the setup sequence

Premises sit between incorporation and the licences. In practice, a WRT licence and many other business licences commonly take 2–4 months, and that clock usually starts only once you have premises the authority will accept. Securing the right property early protects the timeline for your bank account and Employment Pass applications. See the full market-entry sequence for foreign-owned companies, our Malaysia company incorporation services and our Malaysia Employment Pass services.

Talk to Paul Hype Page

Looking for an office, showroom, warehouse or factory in Malaysia? Contact us with your activity and preferred location, and we will start the groundwork. We work alongside registered property agents and do not act as a property agency ourselves.

Frequently asked questions