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FAQEmployer of Record BasicsWhen should a company choose EOR instead of opening a local entity?

When should a company choose EOR instead of opening a local entity?

Last updated: May 22, 2026

Choose EOR when

  • You need to hire in Malaysia quickly (within days, not months)
  • You are testing the Malaysian market before committing to a permanent presence
  • You have a small team (typically under 10 employees) where entity maintenance costs outweigh the benefits
  • You want to avoid the ongoing administrative burden of running a local company (annual returns, audit, company secretary)
  • Your focus is on the work, not on building local HR and finance infrastructure

Consider a local entity when

  • You are pursuing Malaysian government grants, licences, or procurement opportunities that require a locally registered company

MalayHire can support both paths: use us as a bridge while you incorporate, or as a long-term EOR partner if a local entity doesn't make sense for your business.