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
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