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Labuan Company as Investment Holding of Sdn Bhd Company

Previously, we compared Labuan Companies and local Malaysia incorporated Sdn. Bhd. Companies. In this article, we would like to cover how Labuan Companies can be structured to include Sdn. Bhd. Companies. This is relevant for local Malaysian businesses already domiciled in Malaysia, looking for the best way to structure their businesses going forward. Especially for owners with MULTIPLE businesses!

This is relevant for new businesses looking to locate in Malaysia [by setting up a local Malaysia Sdn. Bhd. company] whilst seeking to realize the benefits offered by Labuan.

Read on to find out why Labuan and how!

Because of the flexibility of Labuan entities, one can set up a Labuan entity as an Investment Holding Company. This Labuan Investment Holding Company will act as a parent company of local Malaysian Sdn. Bhd. companies, holding 100% ownership.

Labuan Company as Investment Holding of Sdn Bhd Company

Benefits of structuring Labuan Investment Holding Company with Malaysian Sdn. Bhd. Company:

  • Consolidate ownership under one single Labuan Holding Company
  • Single director/ownership permitted for Labuan Company
  • As Investment Holding- corporate tax is zero
  • Dividends paid by Sdn. Bhd. to Labuan Holding Company are subject to NO withholding taxes
  • Labuan Company director fees subject to 0% personal tax
  • Labuan Company dividends paid to shareholders subject to 0% tax
  • Labuan Company can apply for 2-years’ multiple entry work visas for foreign directors and their family
  • No stamp duty for shares transfer and all Labuan business instruments save much cost during disposal
  • Labuan Company can seek listing in Hong Kong, Australia and Singapore exchanges

At CP Trust, we work closely with our clients to help them structure their business in the most optimal manner to best suit their needs.

CP Trust as Your Trust Company

We provide consultation on company structure for Labuan, profiling of documentation and due diligence of company application, assist in providing the registered office and back-end support to ease your operations. We can provide assistance from start to finish in helping you set up your Labuan business. Consult us today!

Feel free to call us at +603-2161 0354, email or fill in this enquiry form to consult us on how to best structure your business! We are here to “simplify the complexities” to get your business up and running!