Labuan is famous for its financial growth and development. It is a good decision for Labuan company setup but you have to meet certain process for that.
So, if you are planning for Labuan company setup to establish business there and want visa and work permit from Labuan. If you want to enjoy Labuan tax for your business you need to know this:
How can you get to achieve your own Labuan company?
- First of all you need is to establish your business or a Labuan company. The time taken to settle a Labuan company is about 5 working days.
- Then you have to open a bank account, which generally takes time upto 4 weeks. This will allow you to do business in that territory of Labuan and also tax payment is done using this.
- Now, if you are eligible to apply for dependent visa and also now you can apply to get work permit. This is an optional criteria for you, if want to live in Malaysia.
- Then fewer more aspects are checked aslike whom your company does trade with also matters a lot while applying.
- There are certain cases defined under this, depending on which the application is passed or rejected. The cases are listed below:
- Case A
This case is assigned to the application if your company is
- Non trading in nature
- Investment holding
The application which is under case A is passed.
- Case B
Under this, those companies get placed who does business with Non Malaysian companies.
- Do business outside Malaysia
- Do business using other currency than Ringgit or Ringgit
Applications under this case are also passed.
- Case C
This case is assigned to those companies who do business with Labuan companies.
- Do business using non Malaysian currency or Ringgit.
The applications under this case are passed.
- Case D
This case is for the companies who do business with Malaysian or non Malaysian company.
- Their transaction must pay RM 20000 tax with Labuan company.
- Their transaction with Malaysian is cahrged with tax of 26% as domestic tax.
Applications under case D are also passed successfully.
- Case E
This case is assigned
- If your company does business with clients for malaysian currency
- If you are availed with income from Malaysia’s domestic market.
The application under this case are rejected and declared as failed.