Comparison Labuan Company and Malaysia Sdn Bhd for Property Investment

Interested to invest in Malaysia’s property but not sure which is the best vehicle to use? The following is the comparison between the Labuan Company and local Malaysia Sdn Bhd Company for Property Investment for your better understanding. Foreigners only have two options between these two vehicles to use.

Description

Labuan Company

Malaysian Sdn Bhd Company

 

 

Investment Holding

Zero tax with management account

Requires audit report

 

 

Capital Paid-up

Min. USD1.00

Min. RM1.00

 

 

Ownership as Director and Shareholder

A single person as Director and Shareholder
(100% foreign ownership allowed!)

A single person as Director and Shareholder

 

 

Yearly maintenance

Authority and Secretary Fee -USD 2,200 (approx.)

Secretary and Tax Agent Fee –
USD 1,500 to USD 1,800 (approx.)

 

 

Rental

Rental income received from Malaysia real estate will draw 66% corporate tax (Latest Labuan Law 2019)

Rental income as an investment holding solely for real estate will be 17% on net profit no more than RM500,000 for paid-up capital below RM 2.5 mil

 

 

Bank Account

Local RM and all foreign currencies of your choice

Local RM and all foreign currencies of your choice

 

 

Minimum Price of Property (Kuala Lumpur)

RM 1 million

RM 1 million

 

 

Director Fee Remuneration

No personal tax for all foreign directors receiving a fee

All directors’ income subject to a personal tax of 0- 28% (depends on resident status)

 

 

Work Permit

2 years’ renewal for the whole family (children under 21 years)

Not eligible

 

 

Work Permit Renewals

Yes, eligible

No eligible

 

 

Clearly, between both, Property Investment registered under local Sdn Bhd company is a better choice!

 

Bulk property purchases in Malaysia with Labuan Fund Vehicle

Foreigners are known to be interested in buying up properties in Malaysia. Most investors use either a local Malaysia Sdn Bhd (Private Limited) company or their own individual name for this purpose. However, for foreign investors who are interested in bulk buying properties in Malaysia (ideally USD 10 million and above) for investment purposes, may want to consider setting up a 100% self-owned property fund structure with a Labuan Company, rather than using a local Malaysia Sdn Bhd or individual name. It is advisable for each investor to find what is the best possible way of investing in Malaysia property in detail for themselves.

Need Further Information on Which Vehicle to Use? Reach Out to Our Team.

We are part of TRICOR GROUP (www.TricorGlobal.com), to set up local Malaysia Sdn Bhd company. We provide comprehensive solutions from setting up right up to annual maintenance services such as tax return, audit, and accounting. We can also help to structure the set up with the inclusion of Labuan company for future easy buy-out.

Send us an email at contact@labuanbusiness.com for advice on how to structure your property investments in Malaysia with the right vehicle!

    Name

    Email

    Nationality

    Product/Services You Intend to Sell

    Target Market
    Malaysia OnlyWorldwide

    Capital Amount

    Company Structure (present or intended)
    100% Foreign-OwnedJoint-Venture with Malaysian

    Do You Intend to Set Up Physical Office/Shop in Malaysia?
    YesNo

    Do You or Your company Require Expatriate Visas?
    YesNo

    Other Info You Need Us To Know

    My contact number in Malaysia:

    Input this code:
    captcha

    Trade Without Barriers

    Tap into ASEAN Market Through Labuan

    Labuan Blockchain and Crypto

    Labuan Wealth Planning

    Labuan Businesses

    Labuan Tax Matters

    Simplifying Complexities

    Property Investment

    We are offshore and onshore business advisory expert to assist you in your business set up in Malaysia!

    Get advantage being our clients to have free to access for complete advise from us on latest regulations, updates and requirements for your business and residency opportunities in Malaysia anytime, anywhere!

    For everything about business investment in Malaysia for foreigners as well as onshore business business expertise, check out our complete information at www.MalaysiaBizAdvisory.com