| | General | Rest of Malaysia | Labuan IBFC |
| 1 | What medium do I use to apply work permit? | Local company (Sdn Bhd) | Labuan offshore company |
| 2 | Category of application | Business | Business |
| 3 | Recommendation or suitability | Suitable only if major investment is to be made in Malaysia. Whilst the minimum paid up is stipulated at RM350k, certain category requires much higher investment. For example retail sector requires at least RM1m. | Suitable for small scale entry or freelance consultants, mostly in service related business. Some are international traders, IT and myriads of other activities. |
| 4 | What posts? | Key posts like director, CEO, General Manager | Mostly for the owner/s of the business who is also the director/s |
| 5 | What is granted? | Work Permit | Work Permit |
| 6 | How many years do I get? | Min 2 years | Min 2 years and 3, 4 & 5 are not uncommon. |
| 7 | Can I bring spouse and dependant? | Yes, spouse and dependant can apply Dependant Pass | Yes, spouse and dependant can apply Dependant Pass |
| 8 | Where can I reside? | Anywhere in Malaysia | Anywhere in Malaysia |
| 9 | To whom approval for position made? | Depending on the business nature and made to any of the 6 bodies below; - MIDA or Malaysian Industrial Development Authority for manufacturing and industry,
- MDec or Multimedia Development Corporation or IT,
- PSD or Public Service Department for government jobs,
- CBM or Central Bank of Malaysia for banking and insurance,
- SC or Securities Commission for security related and
- EC or Expatriate Committee for others.
The most common is the Expatriate Committee. Certain businesses may require recommendation from other bodies. For example retail and trading requires recommendation from the Ministry of Domestic Trade & Consumer Affair and tourism from Ministry of Tourism. | Labuan Offshore Financial Services Authority ONLY |
| 10 | Which immigration office to apply after position approved? | All offices in Malaysia but the bulk is in Putrajaya | Immigration Office in Labuan Only |
| 11 | Do I have to come in person to Immigration office to get my permit? | Yes, once approved you are required to and in most cases in Putrajaya. | Yes, applicant and dependant must travel to Labuan |
| 12 | I-Card (not a valid travel document but convenient to carry our in your wallet) | Yes | Yes |
| 13 | Time frame | Company incorporation: 3-4 days
Approving body level: 3-4 weeks
Immigration level: within 14 days | Company incorporation: 1-2 days
LOFSA level: 1-2 weeks
Immigration level: with 14 days |
| | The Company | | |
| 14 | Who is the Company Registrar? | Company Commission of Malaysia
www.ssm.com.my | Labuan Offshore Financial Services Authority, www.lofsa.gov.my |
| 15 | Who do I see to register my company? | Company Secretarial Firm, Law Firm or Accounting Firm | Labuan Trust Company only |
| 16 | How long does it take to register my company? | 3-4 days | 1-2 days |
| 17 | What is the minimum number of director? | Two | One |
| 18 | What is the minimum number of shareholder? | Two | One |
| 19 | Local shareholder | Not required, now foreigner allowed to own 100% | Not required |
| 20 | Local director | Not required so long as foreign directors have addresses in Malaysia | Not required |
| 21 | Can my co do business with Malaysian residents? | Yes | No, dealing with Malaysian residents is prohibited. |
| 22 | Size of paid up capital required? | - At least RM250k if company owned by local,
- at least RM350k if jointly owned by local and foreigner, and
- RM500k if owned 100% by foreigners
- Certain type of business requires at least RM1m paid up. For example retail and trading.
| Not specified so very minimum paid up will do. It is common to start with just US$100.00 as paid up capital. |
| 23 | Is physical office required? | Yes and the Immigration may make a visit or as proof of existence in the form of rental agreement or even photos. | Not required |
| 24 | Employment of local | Whilst in theory not required, in practice yes and proof of salary payment, provident fund and social security contribution need to be shown. | Not required |
| 25 | Opening of RM a/c | Yes and easy | Yes and easy BUT RM fund can only be used to pay for administrative expenses like salaries, travelling, etc. The RM cannot be used as a currency of trade. All trade must be done in foreign currency. |
| 26 | Buy or acquire lease of property in Malaysia? | Yes | Yes, and it is only for the purpose of its operation or as accommodation for its officers and employees. |
| | Taxation, accounting & audit | | |
| 27 | Who is the Tax Authority | Inland Revenue Board of Malaysia | Inland Revenue Board of Malaysia, Labuan Offshore Unit. |
| 28 | Corporate tax rate | 28% for any kind of business | 0% for investment holding company, 3% or RM20k for others. |
| 29 | Taxation basis | Current year basis, i.e. tax payable in the same year | Preceding year basis, i.e. tax payable the following year |
| 30 | Accounting and audit | Yes and audited account must be filed with the Registrar every year. | Accounting yes but audit is optional |
| 31 | Personal taxation of expatriate | Yes and local rate applies | Yes, local rate applies BUT with 50% abatement |
| 32 | Director’s fee | Not exempted from tax | Fully exempted from tax |
| | Costs | | |
| 33 | Fees payable to Immigration Department for main applicant | RM300 per year plus RM50 processing fee | RM300 per year plus RM50 processing fee |
| 34 | Fees payable to Immigration Department for spouse and dependant | RM90 per year plus RM50 processing fee | RM90 per year plus RM50 processing fee |
| 35 | Can I pay Journey Perform fee? | Yes and it is RM500 | Yes and it is RM500 |
| 36 | Professional fee | Company approximately RM3000
W/permit from RM5000 to RM7000 | Company US$2200
Work permit US$600 |
| 37 | Annual maintenance | At least RM5000 to cover annual fee, secretarial fee, accounting and audit. | At least US$1550 per annum |
