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Labuan Company Experience

#22
Please keep in mind that the FAQ is from 2015, so some parts are already outdated. While you can live in west Malaysia, in 2015 you had to provide a Labuan tenancy contract, which was a document organised by the trust companies. All in all just another fee and few years later they accepted a tenancy contract from Kuala Lumpur during the renewal process.

Since Labuan requires a trust company as intermediary, I suggest you consult one of those companies for recent information.
 
#23
Moonlighter said:
Please keep in mind that the FAQ is from 2015, so some parts are already outdated. While you can live in west Malaysia, in 2015 you had to provide a Labuan tenancy contract, which was a document organised by the trust companies. All in all just another fee and few years later they accepted a tenancy contract from Kuala Lumpur during the renewal process.

Since Labuan requires a trust company as intermediary, I suggest you consult one of those companies for recent information.
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Ok, you said the 250k deposit for the EP based on this FAQ. But we can just disregard this info then, and hear from OP that have actually done this recently.
 
#24
From next year Malaysia will start with a 2% tax on dividends, which would affect you if you take dividends from the labuan company. Making the total tax in labuan roughly 5% if you pay our the profit as dividends.
 
#25
Xshore said:
From next year Malaysia will start with a 2% tax on dividends, which would affect you if you take dividends from the labuan company. Making the total tax in labuan roughly 5% if you pay our the profit as dividends.
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Another articles says labuan entities will be exempt (as will foreign entities).
 
#27
#28
AnthonyR said:
Cost to set up was circa £6,500 with circa £5k ongoing costs. Substance requirements tend to be met through having local directors, with a local office and through the fact that I have to pay myself a RM10k a month salary.
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Hi Anthony, hope you are doing well.

How is it going with the Labuan firm? Since it's been a few months did you make the move to Malaysia already?

I am a software dev working remotely and my family loves Malaysia. I am considering a move with kids. Researching online, I cannot get clarity on the substance requirements.

I can pay myself RM10K salary, but does that really count towards the 50K that needs to be spent in Labuan.
Did you have to hire two staff members separately or does that get taken care of by your agent? You also mentioned a new 5 year Director's visa coming in January. Did that get rolled out?

Thanks for your time.
 
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#29
So I'm currently in Malaysia, although still waiting on my employment pass, the process for which started about 3 months ago. It seems a combination of Christmas, New Year, Chinese New Year and now Ramadan means that barely anything official moves in the first few months of the year (according to my agent at least).

Substance requirements still seem to be pretty sketchy. I have two Labuan resident directors for the company and I incur various costs in Labuan which they assure me is sufficient. I'm based in mainland Malaysia, although do travel to Labuan, so whether my salary is actually taken into consideration for substance isn't entirely clear. I'm taking some formal advice from a Malaysian accountancy firm to clarify all of this.

The 5 year permit didn't materialise, so I'm still awaiting a 2 year permit.
 
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#30
Hmmm, thanks for the reply Anthony. Much appreciated.

It is this uncertainty which is preventing many people from committing to Labuan. If I have to take on two nominee directors and pay the annual costs and also my agent, what is the total annual cost of maintaining the Labuan company going to come to? Is it close to USD 10K or 30K? What if my own salary (living on mainland) not included in the substance requirements? Far too many uncertainties...

Once these become clear to you I would really appreciate and many others will also benefit if you update us here in this thread. Thanks again.
 
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#32
Thought i should create an account and leave some notes here since I'm in the same boat as OP.
In regards with the costs, below is a breakdown from my trust company that I use (mind the service fees might be different from company to company) - however, some fees are fixed, Especially those that go to taxes or government, visas etc.

If we look at EP renewal fees and add those to yearly costs - it comes to about $15K in total operating costs.
Choosing this setup only makes sense if:
1) You pay more than 10-15K in taxes in your home country
2) You insist in exploring SEA and plan to make Malaysia as your homebase.

I would like to talk about another advantage which is overlooked.
Malaysia has an exceptional English speaking pool of talent so if you are in a position where you can "export" that talent to western world I think a Labuan setup makes a lot of sense and would help with substance requirements too (especially if the talent happens to be located in Labuan)

I hope this makes sense, feel free to drop questions, i;m in the same process and try to keep on top of all requirements and procedures
1751637437175.webp
 
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#33
oContisStudio said:
Thought i should create an account and leave some notes here since I'm in the same boat as OP.
In regards with the costs, below is a breakdown from my trust company that I use (mind the service fees might be different from company to company) - however, some fees are fixed, Especially those that go to taxes or government, visas etc.

If we look at EP renewal fees and add those to yearly costs - it comes to about $15K in total operating costs.
Choosing this setup only makes sense if:
1) You pay more than 10-15K in taxes in your home country
2) You insist in exploring SEA and plan to make Malaysia as your homebase.

I would like to talk about another advantage which is overlooked.
Malaysia has an exceptional English speaking pool of talent so if you are in a position where you can "export" that talent to western world I think a Labuan setup makes a lot of sense and would help with substance requirements too (especially if the talent happens to be located in Labuan)

I hope this makes sense, feel free to drop questions, i;m in the same process and try to keep on top of all requirements and procedures
View attachment 9294
Click to expand...
If you need English speaking talent .
It's much better to incorporate in a Philippines Freezone .
 
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