100% Ownership
Low tax benefits
Visa Applications
The Malaysian government constantly welcomes all foreigners and foreign investors to set up their international businesses in Malaysia with a low tax benefit and 100% ownership through the Labuan International Company. However, there are certain expectations of which business owners are required to comply with through specific authorities such as the Labuan Financial Services Authority, the Inland Revenue Authority, the Central Bank of Malaysia, and the Malaysia Immigration Department.
Comparisons
Labuan Company Vs Sdn. Bhd.
In comparison to the Malaysia Sdn Bhd, the Labuan Company is slightly different. A Labuan Company is required to file a report of transactions to the Labuan Authority. These Include:
A paid up capital of USD1 for 100% foreign-owned.
The target market is international.
A minimum of one director and one shareholder.
Re-domicile; can be transferred to any jurisdiction that recognises a Labuan Company.
The business can have shares in a Malaysia Sdn Bhd and other forms of investment.
Corporate tax of 3% for the international market.
Directors will be subjected to no personal tax, while expatriates employed will receive a tax rebate of 50% on a 0-28% personal tax rate.
Audit reporting is only required for trading companies.
All information is strictly confidential unless permission is granted by the owner of the Labuan Company
Sdn. Bhd.
The Sdn. Bhd business structure includes the following:
A target market within Malaysia.
A paid up capital of RM1 million for 100% foreign-owned or RM400,000 for Joint Venture with a Malaysian.
A minimum of one director and one shareholder.
Business and industry licenses are dependant on the business, which will require local Malaysian participation.
Re-domicile is not possible. The business can have shares in a Labuan Company and other forms of investment.
Corporate tax of 24% for both local and international market.
Expatriates employed including the directors will have a 0-28% personal tax rate.
Audit reporting is required unless the business is a private exempt company or has less than RM300,000 turnover.
All information including financial accounts are searchable with no permission required.