Why Malaysia ?
Imagine living in a tropical paradise with modern infrastructure, low living costs, and easy access to the rest of Asia—all while running your own international business. With the Labuan Work Permit, you can legally reside in Malaysia, enjoy tax-efficient benefits, and build a life that blends freedom, comfort, and opportunity. Whether you’re escaping visa runs or setting up a serious global operation, Malaysia offers the perfect balance of lifestyle and business. Let NomadIncorp handle the setup—so you can focus on living your dream.
Own a Malaysian company & get residency—100% foreign ownership. Budget-friendly, open to all nationalities.
Labuan Company
A Labuan company is established under the Labuan Companies Act 1990 and is open to both Malaysians and foreigners. These companies can benefit from highly favorable tax conditions—as long as they meet certain substance requirements.
Key Advantages of Labuan
✔ No withholding tax on dividends or interest paid to non-residents
✔ No withholding tax on dividends or interest paid to non-residents
✔ No stamp duty on instruments used for Labuan business activities
✔ No foreign exchange controls
✔ No capital gains or inheritance tax
✔ No GST, SST, or VAT
✔ Full tax exemption on director’s fees received by foreign nationals
✔ Access to Double Tax Avoidance Agreements (DTA) with over 70 countries
Tax Regime in Labuan
Labuan jurisdiction is known as mid-shore where Labuan entity has two different tax systems, which are Income Tax Act 1967 and Labuan Business Activity Tax Act 1990 depending on the nature of business.
Labuan Business Activity Tax Act 1990
Taxed under the Labuan Business Activity Tax Act 1990
Pay just 3% tax on audited net profits (with substance requirements met)
Divided into pure and non-pure equity holding companies
0% tax if yearly management accounts are submitted and substance requirements are fulfilled
✔ A valid passport (for foreigners) or NRIC (for Malaysians)
✔ Recent proof of address (e.g., a utility bill no older than 3 months)
✔ Company registration certificate
✔ Memorandum & Articles of Association
✔ Most recent annual return
Questions About Labuan Company & Work Permit
Can foreigners fully own a Labuan company?
Yes. Labuan companies can be 100% foreign-owned and still be eligible for a work permit.
How long does it take to get the Labuan company and visa?
Typically 4–6 weeks, depending on document readiness and immigration processing time.
Do I need to be physically present in Malaysia to apply?
No. The entire process can be done remotely until the final visa endorsement.
What are the tax benefits of a Labuan company?
Labuan companies enjoy low corporate tax rates and can be exempt from certain Malaysian taxes if structured properly.
