Latest Changes on Labuan Work Permit
Labuan FSA has announced the latest changes in 2 years’ work permit for Labuan Company license entity and non-license entity and further amendment on the changes.
The changes will take effect immediately for the new Labuan work permit application and renewal application as follows:
Latest Changes on Labuan Work Permit for New Application
5 major changes are:
a. Minimum paid up capital of RM 250,000 is required to be injected into the company bank account (irregardless of the number of expatriates including directors and all managerial positions) with proof of bank statements reflecting the injections
b. The minimum monthly income to declare is RM 10,000 (this income is taxable and the tax rate depends on residency status ranging from 0-28%)
c. Business Plan outlining the following, but not limited to, the Objectives of the Business, Product & Services offered, Target Market, Organization Chart and minimum 3 years’ financial projections
d. The Labuan Company has to have an operational office address in Labuan (different address from the resident secretary) Click here for Complete List of Labuan Work Permit Application
e. Each expatriate is required to have a residential address in Labuan. For expatriates who will be based in Kuala Lumpur and/or Iskandar Johor, the Labuan Company may also set up a marketing office by obtaining prior approval from Labuan FSA and a fully functional operational office in Labuan. In such cases where a marketing office is approved, the expatriate may provide Kuala Lumpur and/or Iskandar Johor residential address.
Latest Changes on Labuan Work Permit – For Renewal of 2 years’ Visa
With effect from 1st Jan 2016, all companies with 2 years’ work permit holders working in Labuan company is required to inject minimum paid up capital of RM 250,000 to be eligible for their expatriates to renew their 2 years’ work permit. This requirement also applies to companies that were registered in the previous years.
All Labuan work permit holders due for renewal must submit their applications at least 6 months prior to the expiry of the current work permit along with:
1. Income Tax Form EA for recent year
2. Latest Personal Tax submission copy along with tax payment receipt (if applicable)
3. Latest certified Form 13 with share capital of minimum RM 250,000
4. Latest 3 months’ payslips with proof of payment in bank statements of minimum RM 10,000 per month
5. Latest Financial Reports
6. Latest Business Plan with financial projections for the next 3 years
7. Latest Invoices or Business Contracts
8. Renewed Tenancy Contract for residential and office addresses in Labuan
Note: Labuan FSA may require additional information/documents or may request for interview with the candidate.
The above changes does not affect the dependent application of spouse, children and parents. Please do plan 6 months ahead for your work permit renewal to meet the necessary requirements to obtain successful approval.
The requirement of operational office and residential address does not affect anyone who would like to solely register a Labuan company (without work permit).
We urge all clients to contact us immediately should you need further clarification. Email us at email@example.com. We ‘simplify the complexities’ of your business!