Labuan Trust service in Malaysia
Comparison of Labuan Company and Malaysia Sdn Bhd
Labuan trust service in malaysia
Comparison of Labuan Company and Malaysia Sdn Bhd
Are you a foreign business owner looking to set up a business entity in Malaysia? Before you can start your business, you will need to choose the type of entity—the Labuan International Company or the Malaysia Sdn Bhd. The right entity for your business will depend on the nature and eligibility of your business itself.
If you intend to set up companies in Malaysia, then going for the Malaysia Sdn Bhd entity is the ideal type for this nature of business. The Malaysia Sdn Bhd business structure includes:
– 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.
– The target market is international.
– A paid up capital of USD1 for 100% foreign-owned.
– A minimum of one director and one shareholder.
– Business license is required. However, most business activities will not need industry license.
– 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.
Understanding the differences between a Labuan Company and a Malaysia Sdn Bhd might be confusing. Should you wish to learn more, get in touch with us now and we will schedule an appointment with you soon.