Jurisdiction Selection
Comparative analysis of Asian tax regimes. We design corporate structures that optimize the effective tax rate on selected services to 3% (Labuan) and ensure asset protection under Common Law.
Structural Options
Malaysia offers a unique 'two-tier' system. We compare Labuan IBFC (Midshore) for global trading and Sdn Bhd (Onshore) for local presence.
Labuan (Selected Services)
3%
Audited Net Profit
Labuan Holding
0%
Investment Holding
Malaysia Local
24%
Standard Rate
Labuan Midshore
Ideal for export, IT, fintech, and trading.
3% Selected Service Tax
Upon meeting substance requirements.
100% Ownership
Full foreign control, no local partners.
Work Permit
2-year visa for directors and rheir families.
Currencies
Malaysia Sdn Bhd
For restaurants, FMCG, and domestic operations.
17-24% Tax
Standard progressive corporate tax rate.
Licenses
Access to retail, construction, and IT licenses.
Govt Contracts
Eligibility for government tenders.
Key Facts
Local Director
and Control
We provide a professional local representative who ensures compliance and protects your interests within the country.
Local Representative
Resident to satisfy substance requirements.
Secretary (CoSec)
Compliance coordination.
Registered Address
Choice of premium locations in Malaysia.
Online Banking
Full account management.
Protection Package
ACTIVE STATUSLegal protection and security
Comparison Matrix
Corporate Tax
3% (Selected services) / 0% (Holding)
17% (first 600k), then 24%
SST (VAT)
0% (Not applicable)
6-8% (threshold 500k MYR)
FX Control
None
BNM Control
Directors
Min. 1 (Foreigner)
Min. 1 (Resident/Foreigner)
Audit
Mandatory (Annual)
Mandatory (Annual)
Paid-up Capital
USD 1 (Nominal)
MYR 1 (Nominal)
Immigration
Labuan Employment Pass
ESD / MDEC Pass
| Parameter | Labuan IBFC | Malaysia Sdn Bhd |
|---|---|---|
| Corporate Tax | 3% (Selected services) / 0% (Holding) | 17% (first 600k), then 24% |
| SST (VAT) | 0% (Not applicable) | 6-8% (threshold 500k MYR) |
| FX Control | None | BNM Control |
| Directors | Min. 1 (Foreigner) | Min. 1 (Resident/Foreigner) |
| Audit | Mandatory (Annual) | Mandatory (Annual) |
| Paid-up Capital | USD 1 (Nominal) | MYR 1 (Nominal) |
| Immigration | Labuan Employment Pass | ESD / MDEC Pass |