Brand Before Entity: Trademark Registration for Foreign Companies Entering Malaysia

Why should foreign company trademark registration in Malaysia be part of your market entry plan?

Your brand usually enters Malaysia before your company does. Distributor conversations, a launch announcement, a .my domain and recruitment adverts all make the name visible months before a Sdn Bhd trades. That window is when a third party is most likely to file the mark first. That is why foreign company trademark registration should start with your entry plan, not your launch.

A trademark in Malaysia is a sign registered with MyIPO under the Trademarks Act 2019 that gives its owner the exclusive right to use it for the goods or services covered by the registration. Rights are territorial: a registration in your home market, or in Singapore, gives no protection in Malaysia.

Malaysian law does recognise genuine prior use. An applicant must claim to be the bona fide proprietor of the mark (section 17(1)), and an earlier user can oppose a later application or bring a passing-off claim. But relying on prior use means proving goodwill and reputation in Malaysia, which is slow, costly and uncertain for a company that has not yet launched. A registration gives you statutory rights from your filing date, which the Act treats as the date of registration (section 36(1)), and access to enforcement tools such as customs detention of suspected counterfeit goods (section 93).

For a primer on what qualifies as a trademark, see our guide: What is a Trademark? Understanding Intellectual Property Protection in Malaysia.

Does an SSM company name protect your brand in Malaysia?

No. Different bodies, under different Acts, handle company name approval and trademark registration for different purposes. SSM’s name checks look at existing company and business names and restricted words. They are not a trademark clearance, and an approved company name does not stop anyone else from using or registering the same brand for goods or services.

Who should own the trademark: the parent, the Sdn Bhd or a holding company?

For most foreign groups, the overseas parent or a group IP holding company owns the Malaysian registration and licenses it to the Malaysian subsidiary. That keeps the brand under group control and makes it easier to restructure or exit the Malaysian business later. The right answer depends on your group structure, tax position and how central the brand is to enterprise value.

Ownership has a timing consequence that many groups miss. If you want the Sdn Bhd to own the mark, you cannot file in its name until SSM has registered the company. Groups that need protection immediately often file in the parent’s name first and assign the mark later, or keep it with the parent permanently.

If you’re considering a Labuan entity, read our overview of Labuan IBFC services before deciding.

Madrid Protocol or national filing: which route suits a foreign company?

Malaysia has been part of the Madrid System since 27 December 2019, so a foreign company can either file directly with MyIPO or designate Malaysia in an international application filed through its home trademark office. If you already hold a secure home registration and are expanding into several markets, Madrid is usually more efficient. If Malaysia is your first or only market, or your home filing is vulnerable to challenge, a national filing is usually safer.

Either way, you can claim priority from your first filing in another Paris Convention country if you file in Malaysia within six months of it (section 26(1)). For a group already filing at home, that six-month window is the simplest way to secure an early Malaysian date.

When should you file: before or after incorporating your Sdn Bhd?

For foreign company trademark registration, the safest time to file is before your brand goes public, which usually means before or alongside incorporation, not after launch. Your filing date is what places you ahead of later applicants, and registration commonly takes 12 to 18 months where there are no objections or oppositions. The sequence below keeps the two workstreams aligned.

1. Decide who owns the mark. Parent, Sdn Bhd or holding company, using the table above. This decision drives everything that follows.
2. Clear the mark. Search MyIPO and the WIPO Global Brand Database across every relevant class of the Nice Classification.
3. File the application. Choose national or Madrid, and claim Paris Convention priority if you are within six months of a home filing.
4. Align the company name. Reserve the name with SSM, or apply for it together with incorporation through SSM’s Corporate Registry System, so the legal name and the brand match.
5. Incorporate the Sdn Bhd. Appoint a company secretary within 30 days of incorporation (section 236, Companies Act 2016) and lodge beneficial ownership information on time.
6. Put the licence in place. Sign a written trademark licence before the subsidiary trades under the brand, and record it with MyIPO.
7. Maintain the registration. Diary the renewal date, keep evidence of use in Malaysia, and watch the register for conflicting applications.

For the incorporation side of this sequence, see The Complete Foreigner’s Guide to Starting a Business in Malaysia.

How should the Malaysian subsidiary use a trademark the parent owns?

Through a written licence. Under the Trademarks Act 2019, a licence takes effect only if it is in writing and signed by or on behalf of the proprietor (section 69(3)). Recording the licence with MyIPO is not mandatory for a national registration, but it makes the licence binding on any later owner of the mark and puts the public on notice. For a Madrid designation, the licence must be recorded with MyIPO to have effect in Malaysia.

Licensed use also protects the registration itself. A mark that is not used in good faith in Malaysia, by the proprietor or with its consent, for three years after the notification of registration can be revoked for non-use (section 46(1)(a)). A documented licence and records of the subsidiary’s use are your evidence if that is ever challenged.

Royalties carry tax obligations. A Malaysian company paying royalties to a non-resident must withhold tax at 10% of the gross amount under section 109 of the Income Tax Act 1967, unless a double taxation agreement provides a lower rate, and remit it to the Inland Revenue Board of Malaysia within one month of paying or crediting the recipient. Late payment increases the amount due by 10%, and the royalty may be disallowed as a deduction. The royalty rate itself must also be arm’s length. See A Complete Guide to Malaysian Withholding Tax in the Digital Economy and our Comprehensive Guide to Transfer Pricing Guidelines in Malaysia.

What should you look for in a provider handling both incorporation and trademark registration?

Foreign company trademark registration works best with one accountable adviser across both processes. Most foreign companies otherwise manage a corporate secretary and a separate IP firm on different timelines, and the gaps between them are where brand ownership, licensing and tax decisions get missed. Check that your provider offers:

• A single engagement and timeline covering SSM incorporation and MyIPO filing.
• Filing through a registered Malaysian trademark agent, as the law requires for non-resident applicants.
• Ownership and licensing advice that accounts for withholding tax and transfer pricing, not just the filing.
• Classification advice that uses MyIPO’s pre-approved list where it fits, to reduce cost and objections.
• Post-registration support: licence recordal, renewals, use evidence and watching services.

InCorp Malaysia can coordinate your trademark application alongside company incorporation, so both workstreams run to one plan with one point of contact. Applications are filed with MyIPO through a registered Malaysian trademark agent, as the law requires for non-resident applicants. If the ownership structure or licence has tax implications, our tax and corporate secretarial teams can advise you before you file. The outcome of any application rests with MyIPO’s examination and the opposition process.

Related guides

• What is a Trademark? Understanding Intellectual Property Protection in Malaysia
• Complete Guide to Malaysia Trademark Search: How to Check if Your Brand Name is Available
• The Complete Foreigner’s Guide to Starting a Business in Malaysia
• A Complete Guide to Malaysian Withholding Tax in the Digital Economy
• Comprehensive Guide to Transfer Pricing Guidelines in Malaysia

Official sources

• Intellectual Property Corporation of Malaysia (MyIPO): Applying for a trademark
• Trademarks Act 2019 (Act 815), WIPO Lex
• WIPO: Malaysia Joins the Madrid System
• Inland Revenue Board of Malaysia: Withholding Tax
• SSM: Guidelines for the Incorporation of a Local Company

This guide gives a general overview of trademark registration for foreign companies in Malaysia, based on the law and MyIPO practice as at October 2026. It is not legal or tax advice. Ownership, filing route and licensing decisions depend on your group structure and markets, so for an accurate assessment of your position, please speak to one of our advisers.