It’s called the ‘Labuan Director’s visa’
Foreigners setting up a company in Labuan and planning on relocating to Malaysia will need a valid Labuan Work Permit, also known as a Labuan Director’s visa or Labuan Employment Pass.
This article provides a full overview of Labuan Work Permits to help you understand the steps and requirements involved and efficiently sync your visa application and company incorporation.
Here’s how we’ll break it down:
- Overview and key features
- Minimum requirements to apply for one
- The application process, including timeframe and costs
- We’ll try to pursuade you to let us help (for your own good!)
If that sounds good, let’s begin.
What is a Labuan Work Permit?
A Labuan Work Permit is a two-year renewable work visa that caters to specific expatriates and foreign directors serving Labuan-based companies. At a glance, this visa offers holders numerous advantages, namely:
- they may live not only in Labuan but also mainland Malaysia (eg: Kuala Lumpur)
- they may exit and enter Malaysia multiple times
- they are allowed to bring their immediate family as dependents
- they and their family members can easily open a local bank account
- shareholder dividends earned are tax exempt
- a simple renewal process every two years
The ability to freely leave and enter Malaysia alone is extremely attractive to business owners – now add the other perks and it’s no surprise Labuan Work Permits are in high demand.
To qualify, there are two main requirements: minimum income and position within the company.
|1. RM10,000 or equivalent in any currency
2. Combined monthly income including wage, cash allowances, benefits, value of accommodation, and various commissions
|Position within Company
|Should fall under at least one of the following three categories:
1. Top management (e.g. Board member, managing director, CEO)
2. Professional (e.g. Accountant, lawyer, consultant)
3. Technical expert (e.g. IT Specialist)
As you are already the owner of a Labuan company, all that’s left is to appoint yourself as a director with at least RM10,000 in monthly wages.
Remember to thank yourself for the generous promotion and raise!
There are two parts to the pre-application stage: gathering required documents and incorporating your Labuan company.
Gather required documents
Ensure you’ve compiled the following documents:
- Your resume
- Four copies of passport size photos with a blue background
- A copy of employment contract or letter of appointment
- The company business plan, which should include
- A description of business undertaken
- An organisation chart
- Your job description
- Income tax information, which should include:
- The Labuan entity’s tax reference
- The employer’s tax reference
- Your personal tax reference
Keep in mind additional supporting documents may be requested by the Labuan authorities.
Incorporate a Labuan company
Before you can get a visa as a Labuan company director, you need a Labuan company to direct!
Incorporating a company in Labuan must be done through a Labuan Trust Company, who will act as your business advisor and ensure you are fully compliant with Labuan regulations.
For a full timeline of incorporation and visa application, check out our guide to Labuan Company registration here, but for now, just know that you’ll need to engage a Labuan Trust Company to incorporate your business before you can proceed with your Work Permit application.
Submitting the Work Permit application
The application can be submitted to LFSA through the following:
- Your Labuan company
- A Labuan Trust Company
- Labuan insurance managers or Labuan underwriting managers
- Labuan takaful managers or Labuan takaful underwriting managers
In our opinion, if you value convenience, find a trustworthy Labuan Trust Company, then allow them to handle both your company incorporation and Work Permit submission.
PS: We know a pretty good one, so feel free to get in touch!
It may take up to 8 weeks for LFSA to finish their due dilligence and approve your Work Permit.
Upon approval, you’ll have to:
- Obtain a Visa with Reference
- Travel to Labuan
- Get the work permit stamped on your passport by the Labuan Immigration
Once your Work Permit is approved, time to get your Labuan Trust Company to begin the application process for your family.
Time & costs involved
Time-wise, expect the entire process to take about eight weeks assuming all documents are in order, and each Work Permit application has a non-refundable processing fee of USD350.
Note this doesn’t include miscellaneous fees, such as Entry Visa fees which vary between countries.
Let MISHU handle your Labuan Work Permit application
MISHU’s team is experienced in helping applicants swiftly incorporate a company in Labuan and obtain a visa. We would be happy to sit down with you and understand your needs – check out our Labuan Incorporation page and let us know if you’d like help!