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.