ChocolateOrange

Can someone just qualify for me as to whether there have or have not been changes to the Labuan Business Set up please?

Do I have to have a monthly income of 10,000 RM and share holders worth 250,000 RM?

I have found 50 pages advertising the setting up on a Labuan business and NOT mentioning this new change and just TWO pages who have mentioned it.

It seems like the Malaysian Gov is trying to crack down on the amount of immigrants in Malaysia? Which seems bizarre.

The Labuan entry option seemed like the best route in for us but now it looks like we might have to apply for a LTSV pass.

InVinoVeritas

Just to avoid confusion that is Labuan and the Malaysian Ringitt is RM or MYR.

ChocolateOrange

LOL. Apologies.

InVinoVeritas

I changed the thread title for you too

SushiFan

I heard from a friend that the rules for a Labuan business have been changed since 2017, making it less interesting. I haven't been able to find a detailed overview/description of the new rules.

xizzles

Something's about Malaysia will change, yet still stay the same. I can't quite quote any experiences with Labuan or MM2H, but I can tell you, I've tried registering my Singapore-plated cars for the VEP (vehicle entry permit) thingamajig and the goalposts keep shifting. In that time, I've registered and then deregistered my vehicles as they've been sold and re-registered new ones as they've been added to the garage.

And until today, the promised acknowledgment email from the Malaysian MOT for me to collect my RF thingamabob has yet to be seen.

But, they've started collecting money from Singaporean-played cars since October of last year though - it seems money talks the loudest, on either side of the Causeway

Stuck in Auckland

Is this different from the setting up of a Labuan company?

"Advantages Registering Malaysia Labuan Company

Own an International Company 100% in Malaysia complete with Work Permit for you and family – all within 60-90 days! Find out how we can guide you to cheaper form of registration, low cost maintenance and lowest tax regime in Malaysia!


Labuan (Malaysia), being one of the few off-shore financial centres in Asia, has attracted many multi-national businesses and entrepreneurs all over the world by using Malaysia as the hub for their international business. One obvious key advantage of the centre is the very attractive low tax regime. The Labuan International Company is the simplest form in Malaysia, where foreigners can owned 100%. Labuan is a mid shore jurisdiction allows trading activities for both local and international trades! Use Labuan Company to tap into 630 million market potential of Asean Economic Community and Malaysia market today!! [Read: Why Malaysia is a choice now?] Advantages Registering Malaysia Labuan Company
Here is some keys point of attraction of owning a Labuan Company:
•Incorporation of Labuan International Company can be 100% foreign owned, without local Malaysia partner!

•Paid-Up Capital of the Company(minimum USD 1) is low!
•Labuan International Company can act as Investment Holding Company for property, assets and wealth management!
•Labuan International Company for your International Trading Business!
•Simple structure only need one Director and one Shareholder, both position can be of the same person!
•Incorporation is fast, often complete within 14 days, can be done if you are not in Malaysia!
•No Trade Licenses required for trading, e-commerce, import, export and consultancy businesses!
•Corporate bank account and personal account can be opened anywhere in Malaysia in RM and in any other foreign currencies!
•Incorporation Company allows you to receive your sales in your preferred foreign currency ie USD or Euro, etc!
•No Sales & Service Tax and GST for your sales transaction!
•No Withholding Tax on Dividend, Interest, Management, Technical and Royalty fee!
•Yearly taxation on profit for Trading Company only 3% or pay flat fee of RM20,000!
•Zero tax on Investment Holding Company structure!
•Business Visa is available to apply, right after the incorporation of Company!
•Low company paid up capital of RM250,000 for work visa application!
•Business Visa application takes only about 45-60 days. After approval, expatriate fly in Malaysia to stamp visa!
•Low cost of set up office and residential address to engage in Labuan!
•Expatriate work visa is 2-years’multiple-entry and it is renewable!
•Spouse and children (below age 21) can join as dependent visa!
•Parents can be included on yearly renewable visa!
•Business Visa holders can reside anywhere in Labuan and West Malaysia (where major cities Kuala Lumpur, Penang, Johor are located)"

Check with us if you encounter these scenario:
•I am running an Internet On Line business, unsure what type of set-up should I have to enjoy full benefits of work visa and tax
•I want to have 2 years’ work visa for myself and family fast, without much hassle
•I want to have a 100% foreign owned business in Malaysia for international business as importer, exporter, trading and consultancy
•My partners and I wish to have work permit while performing our International businesses in Malaysia
•I want a business that allows me to trade in other currencies easily
•I want a low company tax on my profit
•I want my children to study in International school under my work visa in Malaysia
•I want to have bank accounts in Malaysia under my company and personal solely under my control
•I want to have a corporate company account where I can trade stock market in other countries (Hong Kong or Singapore)

SushiFan

I do not know exactly what items have changed. Apparently the old rule was such that the (foreign) director did not have to pay income tax in Malaysia. This seems to have changed, but is also not visible in the bullet list you show.

stepen

Directors salaries to foreign director is tax free until 2020 (at least).
Last year was changes to required paid up capital for work visa. So not relating to labuan company itself.

Stuck in Auckland

Gets better and better

SushiFan

I have been told that this is not true any more. But it is only "hearsay" so I won't discuss it any further.

stepen

I would trust the regulations and laws more than hearsay. But it might not get renewed after 2020, that's a possibility.