What Benefits to get from a Labuan Work Permit in Malaysia?

Malaysia is a country for all seasons where people can visit as a tourist and explore the place, especially its natural treasures, and enjoy its pleasant tropical climate. The tropical climate can be a giveaway for people coming from the cold climes of Europe. Besides, Malaysia has everything that is needed for modern living – good healthcare facilities, international schools, robust connectivity, great infrastructure, and employment opportunities, among others. Many wealthy foreigners get so enamoured of Malaysia that they settle for its Malaysia My Second Home (MM2H) program wherein they can buy a second home. 

With a moderate cost of living, Malaysia can be pretty decent for wealthy living, especially if one happens to come here as an expatriate employed by a foreign company. Although Malaysia happens to be a favourite business destination for global companies, it is the mid-shore free economic zone called Labuan that offers foreigners the best opportunities to set up a company. The key benefits of opening a Labuan company by a foreigner in Malaysia are 100% foreign ownership, 3% taxes, and permission to deal with Malaysians. Further, the company stakeholders and their families (parents, spouse and children under 21 years) can apply for a Labuan work permit with multiple entries for two years. 

For those company owners and their families not residing in Malaysia, the two years multiple entry work permit visa can enable them to enter and leave Malaysia for business requirements. The multiple entries into Malaysia can be of great convenience wherein the owners or members of their families need not visit any Malaysian embassy or consulate in their home countries. However, under the immigration law, foreigners with a tourist visa are disallowed from conducting any business activities. 

Eligibility for a Labuan work permit

Foreigners opening businesses in the Labuan region of Malaysia are eligible to get a Labuan work permit based on the nature of their business activities. So, company directors and expatriates can apply for the permit by placing their business plan as one of the documents before the authorities. Post-approval of the 2 years’ work permit, visas for dependents such as spouse, parents, and children can be applied. The visa for parents shall be given on a yearly basis. However, the approval for the permit lies solely with the relevant authorities, and so, it is better to engage the services of a consulting company to facilitate the groundwork.  

Circumstances for non-approval of a Labuan work permit

An eligible foreigner or expatriate may not be able to renew his or her work permit on account of the following circumstances:

The company is not operational

The company did not comply with the statutory requirements

Taxation records and yearly fees of the company are not updated

Once the company work permit is approved by the relevant authorities the person along with his or her family is required to visit the Labuan immigration officials for stamping of visas on their passports. The meeting in Labuan with immigration officials is only for the first-timers. Thereafter, onward renewal can be done without going to Labuan unless the immigration department makes a special request. 

Conclusion

In view of the multiple benefits business owners can derive by operating in Malaysia applying for a 2 years’ multiple entry Labuan work permit for themselves and their families can be a win-win for them. However, hiring a reputed consulting company like Premier Three at affordable rates can facilitate the process.