Application for Labuan Work Permit

For foreigners who wish to start a business and stay permanently in Malaysia with Family, for faster access to Malaysia, they may choose to set up a 100% foreign own Labuan International company and get work permits under the company. The processing time starting from registration of the company to the final visa endorsement into your passport will take starting from 60 days to a maximum of 90 days. Upon successful completion of company registration, depending on business activity and company profile, company can apply 3 to 4 positions of foreign expats for Labuan work permit.

By setting up a Labuan company as a foreigner, you will be able to get 2 years Labuan work permit (DP10), without any hassle. To apply for work permit, company needs to have a minimum paid-up capital of more than RM 50,000 to less than 1 million. The best part for Labuan company is, company can start business without having any trade license and physical office. Besides that, the work permit allows multiple entries. However, the work permit has to be renewed every 2 years. Apart from the directors, their dependents (spouses and children below 21 years) are also granted to stay in Malaysia legally. They can stay in Labuan or in mainland Malaysia both places.

1. Benefits of Labuan Work Permit

Why one Company choose Labuan to Apply work permit:

1. Work permit holder can stay and work in Labuan Island and Mainland Malaysia- both.
2. It is possible to obtain work permit even for a non-trading company that is aimed at asset management like Business Consulting.
3. The shareholder’s dividend is exempted from Tax.
4. It is possible to smoothly carry out meetings and business trips between Labuan and other countries (For example: Japan, Hong Kong, Singapore, etc.) while having work permit in Malaysia.
5. Easily can renew after every 2 years.
6. Those who are not residing in Malaysia, with the multiple-entry Labuan work permit, they will be able to open personal bank account in Malaysia.

2. Labuan Work Permit – Required Checklist

Kindly prepare the following documents before applying for Labuan Work Permit:

1. Four (4) copies of passport size photos with WHITE COLOUR background.
2. Certified True Copies of latest passport by Notary Public.
3. Certified True Copies of highest qualification – educational certificate by the Embassy of your country / Notary Public.
4. Personal Resume.
5. Business Plan of the Company (with future 3 years financial projection, target market).

Applicant should sign on all pages of the entire set of documents and courier them to PREMIER THREE CONSULTING FIRM  along with 2 copies each of Employment Letter, Letter of Undertaking, and Statutory Declaration. Further, the date field must be left blank. The Labuan Financial Services Authority will enter the date.

As the director of the company, the applicant is required to have an employment agreement with the Labuan Company prior to applying for a work permit. Moreover, applicants’ monthly salary must be at least RM 10,000 as per the employment agreement.

3. Approval Process for Labuan Work Permit

Application for the Labuan work permit will take approximately three weeks to a month from the date of submission of the application to obtain the Labuan Immigration Department’s approval. A visit to the Immigration Department in Labuan is essential after you receive the approval, for the issue of work permit visa.

The applicant will be required to pay a fee of MYR 1,225 (Malaysia visa- MYR 500 and Malaysia Pass- MYR 725) at Labuan Immigration in order to receive the work permit. The applicant cannot make the payment either by check or credit card. Another aspect you have to keep in mind is that Labuan Immigration issues work permits only from Tuesdays through Thursdays. So, you will have to plan your travel accordingly.

Access to Labuan is operated daily by Malaysia Airlines and AirAsia from Kuala Lumpur (Capital city – West Malaysia), and the flight time to Labuan is approximately 2 hours and 15 minutes. We will advise you earlier for an Immigration meeting session to ensure the smooth endorsement of your visa. Moving forward, renewal of visa application time, it’s not necessary to travel to Labuan to get stamping unless the Labuan Immigration Department request for that.

4. Recent Changes on Labuan Work Permit, Applicable for New Application

LFSA(Labuan Financial Services Authority) has announced the latest changes in two years work permit application effective from April 2019. Below are the major changes for new application:

1. The minimum monthly salary of RM 10,000 must need to declare (this salary is taxable and the tax rate may vary depending on residency status from 0 to 28%). After 2 years, to renew work permit must need to submit Income Tax Form EA for the recent year, latest 3 months payslips with proof of payment.
2. Company business plan mentioning objective of business, target market, organization chart, Product/ service offered, minimum 3 years financial projection.
3. Before submission of work permit application, the company must need to have an operational office. Must need to submit renewed rental agreement while renewing work permit after 2 years.
4. Each applicant must need to submit two reference letters from professional bodies.

5. FAQ on Labuan Work Permit

1. What are the benefits of having Labuan Company? 
   I. Can Register 100% foreign ownership
   II. 3% tax regime for the Trading Sector
   III. Permitted to deal with Mainland Malaysia.
2. Where can I be eligible to stay and work with Labuan’s work Permit?
   West Malaysia and East Malaysia both as long as the applicant can show rental agreement against the address.
3. When should I renew my work permit?
   Minimum 6 months before the expiration date.
4. When can I apply visa for my dependent?
   Applicant can apply for spouse and children visa together with the work permit application.
5. Is there any chance of getting a rejection on my Work permit renewal application?
   If the company is not active in operation, don’t maintain proper company’s statutory record and information, has unpaid yearly maintenance fees, Personal tax is never paid neither for the company, tenancy agreement is never renewed, and under these circumstances may get a rejection on visa renewal.
6. Who is eligible to apply for a Labuan Company work permit?
   All directors/shareholders and qualified expatriates are eligible to apply for work permit under Labuan company for proposed positions. As the company business plan will be submitted while applying for work permits, it must be descriptive and all applicant’s positions need to support the nature of business.
7. Is it must to be present physically at the Immigration Department to endorse Visa?
   Yes, under the Immigration Act, applicants must be present at the Immigration department during the first time visa stamping, if necessary, there may be a short interview before visa stamping, moving forward visa renewal time does not need physical presence.
8. How long does it take to complete the visa application process?
   Labuan work permit involves two approvals respectively from the Labuan Authority and the Immigration Department. The whole process may take from 45-60 days.

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