China SMEs Accessing the Asean Market Potential via Malaysia based Labuan Company!
With China economy slowing down, China SMEs are aggressively encouraged by the China Government to venture overseas through the “One Belt One Road” strategy. With Malaysia strategically located within the ASEAN region, businessmen from Hong Kong, China and Taiwan encouraged to use Malaysia as a gateway access to a deep reach of ASEAN market including young growing nations like Vietnam, Myanmar, Laos, Cambodia to explore various opportunities. With Malaysia main key factors of attractions of multilingual capability as well as its resources, strategic location, facilities, good infrastructures and socioeconomic stability join in the rally for these huge potential trades, many more will take their position.
Why Labuan company, not local Malaysia Private Limited Company (Sdn Bhd)
* Labuan company deals and transacts with foreign currencies which is not subject to capital control. This especially benefits businessmen with huge trades. A bank account with major foreign currencies can be opened with no restriction of inflow and outflow of business funds. Both domestic onshore and offshore banks can be opened.
* Labuan company is flexible and allows both trades-Malaysian and non-Malaysian trades with a clear corporate tax rate as follows: Malaysia trades: 24% while Non-Malaysian trades: 3%. Malaysia Sdn Bhd company offers only one corporate flat tax rate of 24% for foreign ownership.
* Labuan company can be owned 100% by a foreigner, with a single person as director and shareholder same as Malaysia Sdn Bhd company.
* Inland Revenue also can issue corporate tax residency certificate to the Labuan company as well as personal tax certificate for expatriates who are employed under the company Labuan company can easily employ expatriates and apply 2 years multiple entry work permit to facilitate smooth immigration entry and exit the expatriates can stay in Malaysia to work.
* Labuan company does not require trade licenses to operate import/export, trading, e-commerce, advisory and consultancy businesses while Malaysia Sdn Bhd company has restrictions on issuance especially the industry licenses to 100% foreign ownership due to protection interest of Malaysia citizens.
[Read: More information Comparison of Labuan Company and Malaysia Sdn Bhd]
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