ACTIVITIES NOT REGARDED AS CARRYING ON BUSINESS IN MALAYSIA
A foreign company shall not be regarded as carrying on business in Malaysia for the reasons only that the company does the following matters in Malaysia:
\(a\) is or becomes a party to any action or suit or any administrative or arbitration proceeding or effects
settlement of an action, suit or proceeding or of any claim or dispute;
\(b\) holds meetings of its directors or shareholders or carries on other activities concerning its internal
affairs;
\(c\) maintains any bank account;
\(d\) effects any sale through an independent contractor;
\(e\) solicits or procures any order which becomes a binding contract only if the order is accepted
outside Malaysia;
\(f\) creates evidence of any debt, or creates a charge on movable or immovable property;
\(g\) secures or collects any of its debts or enforces its rights in regard to any securities relating to those
debts;
\(h\) conducts an isolated transaction that is completed within a period of thirty one days, but not being
one of a number of similar transactions repeated from time to time;
\(i\) invests any of its funds or holds any property; or
\(j\) imports goods temporarily under the Customs Act 1967 \[Act 235\] for the purpose of display,
exhibition, demonstration or as trade samples with a view to subsequent re-exportation within a period
of three months or within such further period as the Director General of Customs and Excise may in his
discretion allow.