Comparison Labuan Company and Malaysia Sdn Bhd for Property Investment
Interested to invest in Malaysia’s property but not sure which is the best vehicle to use? The following is the comparison between the Labuan Company and local Malaysia Sdn Bhd Company for Property Investment for your better understanding. Foreigners only have two options between these two vehicles to use.
Description | Labuan Company | Malaysian Sdn Bhd Company | ||
Investment Holding | Zero tax with management account | Requires audit report | ||
Capital Paid-up | Min. USD1.00 | Min. RM1.00 | ||
Ownership as Director and Shareholder | A single person as Director and Shareholder | Companies Act 2016 specifies 1 Director; however, in practice - a resident Director is required. Single shareholder is permissible | ||
Yearly maintenance | Authority and Secretary Fee -USD 2,200 (approx.) | Secretary and Tax Agent Fee - | ||
Rental | Rental income received from Malaysia real estate will draw 24% corporate tax | Rental income as an investment holding solely for real estate will be 17%-24% on net profits | ||
Local RM and all foreign currencies of your choice | Local RM and all foreign currencies of your choice | |||
Minimum Price of Property (Kuala Lumpur) | RM 1 million | RM 1 million | ||
Director Fees Remuneration | No personal tax for all foreign directors receiving a fee | All directors’ income is subject to personal tax of 0 - 30% (depends on resident status) | ||
2 years’ renewal for the whole family (children under 21 years) | Not eligible | |||
Work Permit Renewals | Yes, eligible | Not eligible | ||
Clearly, there are benefits for each of the vehicles. The vehicle choice will depend on the objectives that you have in mind. Speak to us so that we can advise you! | ||||
Bulk property purchases in Malaysia with Labuan Fund Vehicle
Foreigners are known to be interested in buying up properties in Malaysia. Most investors use either a local Malaysia Sdn Bhd (Private Limited) company or their own individual name for this purpose. However, for foreign investors who are interested in bulk buying properties in Malaysia (ideally USD 10 million and above) for investment purposes, may want to consider setting up a 100% self-owned property fund structure with a Labuan Company, rather than using a local Malaysia Sdn Bhd or individual name. It is advisable for each investor to find what is the best possible way of investing in Malaysia property in detail for themselves.
Need Further Information on Which Vehicle to Use? Reach Out to Our Team.
We are part of TRICOR GROUP (www.TricorGlobal.com), to set up local Malaysia Sdn Bhd company. We provide comprehensive solutions from setting up right up to annual maintenance services such as tax return, audit, and accounting. We can also help to structure the set up with the inclusion of Labuan company for future easy buy-out.
Send us an email at [email protected] for advice on how to structure your property investments in Malaysia with the right vehicle!
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