There are plenty of advantages when it comes to setting up a Malaysia branch office, such as:
Greater level of control
As branch offices have their own legal entity status, they are fully controlled by the parent company. Every decision and overall business activities are overseen by the parent company.
Regulated based on parent company’s jurisdictions
The legislation of a branch office is governed by the country of the parent company. This can be an advantage or a disadvantage, depending on the regulations of the parent company’s country.
Ease of company setup & cost-effective
Compared to incorporating a private limited company or a subsidiary, setting up a Malaysia branch office is considered the cheaper option. The compliance regulations of a branch office are also much easier compared to other entity types. It is also considered an adequate business structure for low-risk business activities.
Avoidance of double taxation
As Malaysia has many double taxation treaties with other countries, the branch office is taxed on the income that is generated in Malaysia only.