Labuan, a federal territory of Malaysia, has gained a reputation as a prominent international business and financial center (IBFC). Among the many benefits of setting up a company in Labuan is the ability to obtain an Employment Pass (work permit), which allows foreign professionals and expatriates to work and reside in Malaysia. Silverknows Trust Ltd specializes in facilitating the application process for both licensed and non-licensed entities registered in Labuan IBFC. This guide provides an in-depth overview of the Labuan Employment Pass application process and its benefits.
What is the Labuan Employment Pass?
The Labuan Employment Pass is a work permit that allows foreign nationals to work for companies registered in Labuan IBFC. The pass is particularly advantageous for expatriates who wish to live and work in Malaysia while being associated with a reputable offshore jurisdiction.
Benefits of the Labuan Employment Pass
- Residence in Malaysia: Pass holders can legally reside in Malaysia with their families.
- Multiple-Entry Privileges: The pass allows for multiple entries and exits from Malaysia without restrictions.
- Dependent Pass Options: Dependents, including spouses and children, can be included in the application.
- Tax Advantages: Labuan companies enjoy a favorable tax regime, and expatriates working for such entities benefit indirectly from this structure.
- Ease of Application for Licensed and Non-Licensed Entities: Both types of Labuan companies can apply for the Employment Pass, offering flexibility in business operations.
Benefits of Labuan Entities
- Labuan’s tax rate is 3% of audited net profits
- Labuan companies are also exempt from withholding tax , sales and service tax
- No exchange control restrictions
- Confidentiality of the information of shareholders, directors, or beneficiaries, unless with your permission.
- Labuan companies have a low minimum capital.
- Access to international banks (multi-currencies bank accounts)
- Labuan is an ideal location for Asian and Middle East markets.
- English, Malay and Mandarin are widely spoken in Labuan/ Malaysia
Eligibility Criteria
To qualify for the Labuan Employment Pass, applicants and the sponsoring company must meet specific requirements:
- Company Requirements:
- The company must be registered in Labuan IBFC.
- Licensed entities (e.g., banks, insurance companies) and non-licensed entities (e.g., agency, legal, accounting, IT and business management companies etc.) are eligible.
- The company should demonstrate operational activity and the need for foreign expertise.
- Individual Requirements:
- The applicant must hold a relevant professional qualification or experience suitable for the role.
- A valid passport with at least 12 months of validity.
- A clean criminal record.
Application Process
The application process for the Labuan Employment Pass involves several steps:
- Preparation of Documents
- A copy of the applicant’s passport.
- Recent passport-sized photographs.
- A detailed resume highlighting professional qualifications and experience.
- Company incorporation documents (Certificate of Incorporation, Memorandum, and Articles of Association).
- Business plan.
- A job offer letter from the sponsoring Labuan company.
- Submission to the Labuan FSA
- The application is submitted to the Labuan Financial Services Authority (Labuan FSA) for approval.
- Processing time typically ranges from 4 to 6 weeks.
- Immigration Department Approval
- Once Labuan FSA approves the application, it is forwarded to the Malaysian Immigration Department for final processing.
- Issuance of Employment Pass
- Upon approval, the Employment Pass is issued, and the applicant can begin working legally in Malaysia.
Dependent Pass Application
Applicants can also include their immediate family members in the application process. Dependents are eligible for a Dependent Pass, which allows them to reside in Malaysia for the duration of the Employment Pass.
Applicant is not required to make placement of fixed deposit (provide financial proof) and purchase property (home) in Labuan / Malaysia.
* Children can attend school or higher education in Labuan / Malaysia.
Required Documents for Dependent Pass:
- Marriage certificate (for spouses).
- Birth certificates (for children).
- Passport copies and photographs of dependents.
Renewal and Duration
- The initial Labuan Employment Pass is typically granted for a period of 2 years.
- It is renewable, subject to the company’s operational status and the expatriate’s continued employment.
Why Choose Silverknows Trust Ltd?
Silverknows Trust Ltd offers end-to-end assistance for Labuan Employment Pass applications, ensuring a smooth and hassle-free process. Our services include:
- Document preparation and submission.
- Liaison with Labuan FSA and Malaysian Immigration.
- Advisory on compliance with Labuan IBFC regulations.
- Comprehensive support during pre and post applications.
Conclusion
The Labuan Employment Pass is an excellent solution for foreign professionals looking to work and reside in Malaysia while enjoying the benefits of being associated with Labuan IBFC. With its straightforward application process and multiple benefits, it is an attractive option for expatriates and their families. Silverknows Trust Ltd is here to guide you every step of the way, ensuring a seamless transition to working in Labuan.
Contact us today to learn more about how we can assist you with your Labuan Employment Pass application.