Live in Malaysia with US SMLLC + Labuan Holding Company

[pieceofmind]

I'm also looking into this same setup if I understand correctly: 1) Open Labuan company 2) Provide myself a Director's visa to live in KL, etc. with my family.

However, it sounds like if the company is giving out employment visa it must have 250K MYR in paid up capital but not sure. Can't I pull the rest out in dividends and pay no extra tax since already taxed at 3%? Is a physical space necessary? Also can I open up a business bank account with one of the Malaysian mainland banks so clients and EMIs wouldn't even realize it's a Labuan company? That means it looks like any other Malaysian company unless I'm missing something.

Interested to hear what the lawyer says because thinking of consulting with an offshore tax strategists but trying to do some ground work first.

Thinking this thru.. Labuan company doesn't seem to make sense for small consultancy businesses under $200K/yr. The 10K MYR / mo salary taxed at 24+% sucks all the fun out of it. Might as well open up a regular Malaysian company and get taxed 17-24% corporate tax, 6% on 2500 MYR / mo salary, then 0% on dividends. Still need to come up with 250K MYR paid up capital for the employment visa but maybe there's another way to get residence. Any thoughts?

 

[fshore]

I'm also looking into this same setup if I understand correctly: 1) Open Labuan company 2) Provide myself a Director's visa to live in KL, etc. with my family.

However, it sounds like if the company is giving out employment visa it must have 250K MYR in paid up capital but not sure. Can't I pull the rest out in dividends and pay no extra tax since already taxed at 3%? Is a physical space necessary? Also can I open up a business bank account with one of the Malaysian mainland banks so clients and EMIs wouldn't even realize it's a Labuan company? That means it looks like any other Malaysian company unless I'm missing something.

Interested to hear what the lawyer says because thinking of consulting with an offshore tax strategists but trying to do some ground work first.

Thinking this thru.. Labuan company doesn't seem to make sense for small consultancy businesses under $200K/yr. The 10K MYR / mo salary taxed at 24+% sucks all the fun out of it. Might as well open up a regular Malaysian company and get taxed 17-24% corporate tax, 6% on 2500 MYR / mo salary, then 0% on dividends. Still need to come up with 250K MYR paid up capital for the employment visa but maybe there's another way to get residence. Any thoughts?

No need with 250K paid up capital, at least that was the case 2 years ago. The company need to have physical office and minimum spend (from 50K and up depending on industry) and employees in Labuan to benefit from the 3% tax rate (else 24% tax). You can have bank account in KL, but clients will know it's a Labuan company based on the company number (starts with LL). Malaysian customers also can't deduct 100% of the invoices from a LL company.