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We provide a one-stop-shop solution with tailored service packages for businesses looking to establish themselves within the Asia Pacific region and Malaysia.

In Malaysia, the two regulators involved in company incorporation are:

Companies Commission of Malaysia (CCM) for Malaysia company incorporation (sometimes referred to as ‘Malaysia onshore company’)
Labuan Financial Services Authority for Labuan company incorporation and financial services licence application (sometimes referred to as ‘Malaysia midshore/offshore company’)

Setting up a Malaysia onshore company, [Sendirian Berhad (Sdn. Bhd.) <brPrivate Limited] in the Federal Territory

Sendirian Berhad (Sdn. Bhd.) is a company incorporated or registered under the Malaysia Companies Act 2016. If you wish to establish a business in Malaysia, if your denominated currency is MYR, and if you have a residence in Malaysia, you shall consider an Sdn. Bhd.

Our expert team can help you register an Sdn Bhd with a registered office in Kuala Lumpur. The requirements for this type of company registration include having a minimum of one (1) residence director. Foreign directors are allowed. The company can be foreign-owned.

Labuan company registration

A Labuan company is a company incorporated or registered under the Labuan Companies Act 1990 (LCA 1990). There are two categories of Labuan companies: Labuan trading company and Labuan non-trading company.

Trading companies conduct trading activities which include banking, insurance, management, licensing, shipping operations, and other trading entities involved in administrative, accounting, and legal services, backroom processing, payroll services, talent management, agency services, insolvency-related services, and management services.

The tax for a Labuan trading company is 3% of its audited net profit, having fulfilled its substance requirements.

Non-trading company/investment holding is also an investment holding company. A Labuan investment holding company is divided into two categories: pure and non-pure equity holding.

Labuan non-trading companies are not subject to tax (0% tax) with the submission of yearly audited accounts and fulfilled substance requirements.

Work permit

The application for Labuan work permits is open to expatriates who work with a Labuan company.
Eligibility Criteria:
- The expatriate shall be paid a minimum salary of RM10,000 per month or its equivalent in any foreign currency.
- The application for a work permit should be in respect of the following positions in the Labuan entity as specified by the Immigration Department of Malaysia:
  - Top management e.g. Executive Director, Managing Director, Principal Officer, Chief Executive Officer, Chief Financial Officer, Chief Operating Officer.
  - Professional e.g. Accountant, Lawyer, Consultant, Underwriter, Economist, Engineer, Actuary.
  - Technical expert e.g. IT Specialist or other specialists related to Labuan trading activity.
- The applicant should have the corresponding competencies of relevant working experience related to the position.
- The company must have a physical office in Labuan.
Applicant may apply dependent pass for his spouse and children.

Labuan financial service application

The diverse selection of Labuan international business and financial’s products and services bring to investors a wealth of business opportunities, covering the areas of banking, insurance, trust company business, capital market, wealth management and other Labuan financial businesses.

Financial services provider/intermediary

		Investment bank	Security Licence	Money broker	Credit token
Permissible Activities		Providing credit facilities Providing advisory services relating to corporate and investment matters Undertaking foreign exchange transactions and interest rate swaps Dealings in derivative financial instruments or any other similar risk management activities Labuan financial business	Providing investment advice or administrative services in respect of securities for the purpose of investment and dealing in securities.	Arranging transactions between buyers and sellers in the money or foreign exchange markets as an intermediary in consideration for brokerage fees paid or to be paid.	Providing/issuing a token to a person (customer) by the person carrying on the business (issuer), whereby such issuer will supply cash, goods, or services on credit to the customer.
Eligibility		An investment bank, commercial bank or group engaging in investment banking activities licensed by the regulatory authority in the country of origin Any corporation with the necessary expertise or experience in the financial-related industry with at least 3 years of good track records and sound financial performance	An individual who holds a relevant degree or professional qualification to carry on activities of a securities licensee An applicant with at least minimum qualification of diploma holder and 3 years’ relevant experience in capital market	An individual or institution with money broking expertise and has good track records in carrying on such business An applicant to have at least three-year experience in money broking business	An individual or institution with the necessary expertise or experience in the financial-related industry with at least 3 years good track records and sound financial performance
Company requirements	Nationality of director and shareholder	No limit	No limit	No limit	No limit
	Minimum paid up capital	USD2,500,000	USD40,000	USD130,000	USD130,000
	Tax	3% on audited profit	3% on audited profit	3% on audited profit	3% on audited profit
Substance requirement	Minimum number of full-time employees in Labuan	3	2	2	2
Substance requirement	Minimum amount of annual operating expenditure in Labuan (MYR)	200,000	100,000	100,000	100,000
Operational Requirements	Physical operation office in Labuan	✓	✓	✓	✓
Operational Requirements	Audit	✓	✓	✓	✓
Annual Licence Fee (Payable to LFSA by 15 January of each year)		USD30,000	USD1,500	USD1,500	USD13,000

Fund setup

Private funds are mutual funds whose securities are, not offered to the public, are owned, or held by,

MAXIMUM 50 INVESTORS

First-time investment by each investor with NO LESS than RM250,000or its equivalent foreign currency, or

ANY NUMBER OF INVESTORS

First-time investment by each of the investors with NO LESS than RM500,000 or its equivalent foreign currency.

It can be structured by using a Labuan company, a protected cell company or a foundation. It allows a collective pool of monies for the purpose of investing into the likes of equities and shares, Forex and money market, commodities, real estates, business and development projects as well as land and business acquisitions.

Requirements:

Local director: Not compulsory
Minimum number of shareholders: Advisable 2 directors
Corporate shareholder: Allow
Custodian: Optional
Fund manager: Optional
Fund administrator: Optional
Auditor: Yes

The fund owner shall notify Labuan FSA by lodging an information memorandum or other offering document by a trust company.

Provide with full, true and plain disclosure of all facts and circumstances that would facilitate a reasonable assessment by a prospective investor in determining whether to purchase or subscribe to the private fund and shall contain at least the following disclosures:

General Information
Investment Strategy
Financial Results
Redemption Policy
Material Changes

Offshore company setup

An Offshore Company refers a corporation that can only operate outside of its country of formation. It is often to take advantage of laws that are not available in one’s country of residence. Examples of these benefits may be tax savings and asset protection from lawsuits. On the other hand, one may want to take advantage of foreign business opportunities.

Country	Tax rate	Legal system	Public register	Local/resident director	Accounting/audit requirement
Seychelles	0	Common	No	No	Accounting record in Seychelles is required
British Virgin Islands	0	Common	No	No	No, but annual economic substance reporting is required
Hong Kong	0 – 16.5%	Common	Yes	No	Yes
Singapore	From 8.5%	Common	Yes	Yes	Yes
Cayman	0	Common	No	No	No, but annual economic substance reporting is required
Samoa	0	Common	No	No	No
Labuan	0-3%	Common	No	No	Yes

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