Low Corporate Tax Structure

  • 3% of Audited Net Profit for Trading Company
  • No tax for Investment Holding Company except those company that hold intellectual property asset

Set Up Labuan Companies

  • Setting up a Labuan Company
  • Open a Bank Account in Labuan
  • Start Trading with the Labuan Company

Information on Setting up a Labuan Company
Formation of Labuan Company
Labuan Company Registration

  Is this Taxable? Labuan Company
a. Trading Activities Tax Rate 3% of Audited Net Profit
Is Audit Compulsory for Trading Activity? Yes
b. Investment Activities Tax Rate No Tax
Is Audit Compulsory for Investment Activity? No
c. Goods & Services Tax (GST) No.
d. Tax Installment Payment No.
e. Submit LHDN CP204? No.
f. Penalty for under estimation on Tax Installment payment No
g. Stamp Duty the execution of all instruments related to the operations such as M&A and Share Transfer Form No Stamp Duty
h. Director Fee received by Non-Malaysian Citizen No tax
i. Gross employment Income received by Non-Malaysian Citizen in Managerial capacity 50% Exemption
j. Gross Housing Allowance and Labuan Territory Allowance received by Malaysia Resident 50% Exemption
k. Issue work permit from Yes. Its easier and faster
l. Director 1 person of any address
m. Shareholder 1 person of any address

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  • Protection of Private and Confidential Information. Company search by any third party is not
available unless written authorization letter obtained from the Company Director or Shareholders.
  • No exchange control restrictions for Labuan Company.
  • No Withholding Tax for Labuan Company
  • Low operation costs such as rent, staffing cost as compared to other major cities in Asia.
  • Labuan is strategic located and proximity to several financial centres in Asia for advantages on the establishment of management and control test compared to other offshore jurisdiction.
  • Time zones proximity for Asian, North Asia, Australia and New Zealand

Labuan Visa or Labuan Work Permit

Labuan Company Sdn Bhd Malaysia My Second Home (MM2H)
Our Recommendation The Best and Cheapest
Application Procedure 1. Incorporate a Labuan Company

2. Apply for work permit

3. One Director

4. Same one Shareholder
as Director

5. 100% foreign ownership of the company

6. Paid up capital of RM 250,000 (or USD 62,500)

7. No audit for non-trading business or, opt for RM 20K tax remittance for trading business (will not be audited)

Easiest and Fast

1. Incorporate a Sdn Bhd

2. Apply for work permit

3. At least 2 Directors with Malaysia address

4. At least 2 Shareholders with Malaysia address

5. Paid up capital RM 500,000

6. Must appoint Auditor

7. Must appoint Tax Agent

8. Very difficult to get approval.  Its troublesome, tedious and tons of documentations.

1. Below 50 Years Old

a. Liquid Asset worth at least RM350,000

b. Month offshore income at least RM10,000

c. Fixed Deposit of RM300,000 with Malaysian bank Or, buy a Malaysian property RM 1 M (USD 250K) which is Fully Paid) to reduce Fixed Deposit to RM150,000

2. Above 50 years old

a. Liquid asset worth at least RM350,000

b. Monthly Offshore income or Pension of at least RM10,000 per month

c. Fixed deposit with Malaysian bank RM150,000 Or, buy a Malaysian property RM 1 million (which is Fully Paid) to reduce Fixed Deposit to RM100,000

How long can a foreigner stay in Malaysia? Renewable every 2 years Renewable 10 years
Can open Ringgit Account? Yes Yes Yes
Can Apply for Dependent Class Yes Yes Yes
Documentation Tentatively Easy Much documentations and a lot of compliances for Income Tax which is subject to penalty if not adhere a. Medical Reports
b. Medical Insurance
c. Bank Statement
d. Confirmation from home country bank

Please contact us for more information or email to info@nullcstcl.com.my