Articles & Insights

Securing A Work Permit In Labuan, Malaysia: Your Comprehensive Guide

Why Choose Labuan?

If you’ve considered Labuan as your ideal destination after reading our articles on “Redomiciliation: Moving Foreign Entities to Labuan, Malaysia” then obtaining a work permit in Labuan might just be the next best step to fulfill your dreams.

Understanding Malaysian Immigration Rules

Malaysian immigration rules vary across its territories, namely Peninsular Malaysia, Sabah, Sarawak, and the Federal Territory of Labuan. In the Federal Territory of Labuan, you can apply for a work permit through a Labuan entity. This permit, valid for 2 years, enables you to enter and exit Malaysia freely and reside in the country.

Advantages of Labuan Work Permit

  • Work permit holders have the flexibility to live in Labuan or anywhere within Peninsular Malaysia.
  • Eligible to apply for more than one dependent pass.
  • Permitted to open personal account in Malaysia.
  • Enjoy favourable tax treatment, including individual income tax exemption on certain types of income derived from Labuan entities.

Requirements

To qualify for the Labuan work permit:-

  • The permit holder must receive a minimum salary of RM10,000 per month or its equivalent in any foreign currency.
  • Positions eligible for the work permit include top management, professionals, and technical experts related to Labuan trading activity.
  • Having relevant competencies or working experience related to the position in the Labuan entity.
  • The employer having an operational address in Labuan
  • Submission of Labuan entity’s business plan. 
  • Upfront payment of 2 years government fees to LFSA.

Application Process

Work Permit Application (After Incorporation of Labuan Company):

1. Document Preparation

  • A certified true copy of the entire passport book.
  • Four passport-size color photographs of employees with a white background.
  • Personal resumes.
  • Employment contracts from the Labuan Company.

2. LFSA Application Submission

  • Submit the work permit application to LFSA for approval.

3. LFSA Approval Process

  • Approval takes approximately 7 working days (fast track) or 30 working days (non-fast track)

4. VDR Letter Acquisition:

  • Upon LFSA’s approval, permit holder receives a VDR letter and applies for Single Entry Visa (7-14 working days processing)

5.Work Permit Issuance

  • Applicant visits Labuan, attends an immigration appointment and obtains the
    work permit.

For further details and assistance in your to apply work permit in Labuan, Malaysia, please contact us.

Disclaimer: This newsletter provides general information only and does not constitute legal or financial advice. Readers are advised to
seek professional consultation for specific inquiries regarding Securing a Work Permit in Labuan, Malaysia.

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