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| Why Need A Labuan Company? | |
| A. | Maximum Tax : RM 20K ( USD 6,700 ) |
| Save tax. You will not be audited too | |
| B. | Easier To Get Work Permit and Visa |
| Help foreigners stay in Malaysia. Easy to get Dependence Visa too | |
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1. How To Achieve That? a. You setup a Labuan Company ( 3 business days ) b. You open a Bank Account ( 7 business days ) If you wanted to do business and save tax, optional c. You apply for a Work Permit & Visa ( 14 business days ) If you wanted to stay in Malaysia, optional d. Also, it depends on who your Labuan Company does business with. See examples below : |
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2. Who Is Eligible?
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3. Do You Know You Pay Tax Twice? 1. Corporate Tax - Your company pay corporate tax 2. Personal Income Tax - You pay income tax from salary derived from your company |
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Benefits 1. 100% Ownership and Control Foreigners will totally own the Malaysian business 2. Minimum Requirement 1 same director + 1 same shareholder 3. Business Nature : Non Trading Your Labuan Company will pay zero corporate tax 4. Director Fee Foreigners will declare income as director fee and pay zero income tax 5. Labuan Legislation The law is stable and will remain unchanged for many years 6. Double Taxation Agreements, DTAs You are protected in avoidance of double taxation 7. Stay in Malaysia Permanently Cheaper and easier method for foreigners to stay in Malaysia. See Comparison : What is the best method for foreigners to stay in Malaysia permanently? |
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4. Diagram Summary Labuan Company's Tax Structure 
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5. How Do I Verify These Information? Check it with Malaysian Regulatory Body |
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| 6. Schedule of Fees |
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| Additional Services |
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| Examples of Fees Note : Annual renewal will be cheaper than below | ||||||||||||||||||||||||||||
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7. Contact Us Tax Agent, LabuanTax.com Contact Person : Gary Wong Contact Number : +6 016 821 8171 Email : gary@labuantax.com |
How To Start? 1. Fill in the form below 2. We recommend a good trust company to you 3. Make payment to the trust company directly 4. Get your Labuan Company in 3 business days |
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8. Enquiry Form |
Someone Asked Questions Malaysia, Charles1. Can we have a Labuan company to charge management fee to a Papua New Guinea company? Any special requirement? Yes, you can. No problem receiving income out of Malaysia 2. Do we need to have office, manpower, etc at Labuan? Not neccesary 3. Is there any tax imposed on dividends to shareholder? The shareholder and company will pay no tax on dividends  United Kingdom, David1. Can foreigners purchase properties in Malaysia? Yes, foreigners can buy, rent, use the property in Malaysia. a. West Malaysia ( Minimum Purchase ) : RM 250K b. East Malaysia ( Minimum Purchase ) : RM 350K  Nigeria, KayodeI would like to stay in Malaysia and setup a company to manage my clients in South Africa and USA and I am considering the option of the Labuan company a. Owning a Sdn Bhd does not guarantee a Visa and PR (Permanent Resident) for foreigners b. Money transferred from oversea to Malaysia is safer with a Labuan Company's Bank Account 1. Can I live in Peninsular Malaysia with a Labuan Business Visa? Yes, you can. Expatriate Work Permit valids as long as the existence of the Labuan Company. You may need a Visa, which will be issued together with the Work Permit. See : Appendix I : Foreigners To Stay In Malaysia Permanently ( Recommended Method ) Appendix II : Malaysia My Second Home Program ( Requirement : Show Proof of Wealth ) 2. Is my foreign income taxable? How much tax should I expect? Yes, your foreign income is taxable. Non trading business is zero. Maximum tax for trading business is RM 20,000. Anything lower than that is 3% tax and will be audited. 3. Is there a guarantee for your services? We do not guarantee a successful incorporation for your Labuan Company, Bank Account and Expatriate Work Permit. Nonetheless, as long as you are running a legitimate business and provide a complete set of documents in compliance to the checklist of the authorities, the success rate is almost 100%. 4. How long does it take for this entire process to be completed? a. Labuan Company - 3 working days b. Bank Account - 7 working days after the setup of the Labuan Company c. Expatriate Work Permit, Visa - 14 working days after the setup of the Labuan Company Note : You must satisfy the documents required to achieve the above. Easy 5. Is Nigerian eligible? a. LabuanFSA : Yes b. Immigration : Yes c. Banker : Yes So, Yes. No problem :-) |
| Appendix I Foreigners To Stay In Malaysia Permanently Recommended Method |
| Labuan Company | Local Company, Sdn Bhd |
Malaysia My Second Home |
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| Duration How long can a foreigner stay in Malaysia? |
As long as the existence of your Labuan Company | Renewable | Maximum 10 years Renewable |
| Procedure How to achieve that? |
1. Setup a Labuan Company 2. Apply for Expatriate Work Permit. ( Easy procedure ) |
1. Setup a Local Company 2. Apply for a Work Permit |
Show evidence of wealth. See Appendix II : Malaysia My Second Home Program ( Requirement : Show Proof of Wealth ) |
| Minimum Requirement |
1. One same Director 2. One same Shareholder 3. Foreigner has 100% ownership of the company 4. No audit for non-trading business or, opt for RM 20K tax remittance for trading business (will not be audited) |
1. At least 2 Directors. Majority Malaysian 2. At least 2 Shareholders. Majority Malaysian 3. Foreigner has no full control over the company 4. Must appoint a Malaysian Auditor 5. Must register through a Company Secretary |
Show Evidence of Wealth : 1. Liquid Asset worth at least RM 350K 2. Offshore month income at least RM 10K, and 3. Fixed Deposit with Malaysian bank at least RM 150K |
| Dependence What about your spouse, son and or daughter? |
Apply for Dependent Visa | Apply for Dependent Visa | Apply for Dependent Visa |
| Document Requirement | Easy | Many documents required, especially for accounting and tax purposes |
A few documents + Medical Report + Medical Insurance |
| Pricing | Labuan Company Work Permit, Visa Business Address USD 6,110 |
Company Formation alone RM 2,000, and above |
RM 450K, and more ( est, USD 150,000 ) |
| Recommendation What is your opinion? |
Best Choice | - | - |
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Appendix II Malaysia My Second Home Program Application Requirement : Show Proof of Wealth Age : Below 50 years old a. Liquid Asset worth RM 500,000, or more b. Offshore Income RM 10,000 / mth, or more c. Fixed Deposit with Malaysian bank RM 300,000 (Min maintenance : RM 150,000) d. Or, buy a Malaysian property RM 1 million ( Fully Paid ) to reduce Fixed Deposit to RM 150,000 Age : 50 years old and above a. Liquid asset worth RM 350,000, or more b. Offshore income / pension RM 10,000 / mth, or more c. Fixed deposit with Malaysian bank RM 150,000 (Min maintenance : RM 100,000) d. Or, buy a Malaysian property RM 1 million ( Fully Paid ) to reduce Fixed Deposit to RM 100,000 |
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Disclaimer 1. Use the materials in this site at your own risk. 2. We make no claim on its accuracy 3. We accept no liability of any form from the use of this material 4. Hey, remember to quote LabuanTax.com for the use of any part of this material. This is basic courtesy :-) |
