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LABUAN WORK PERMIT (EMPLOYMENT VISA)
The Labuan employment visa is designed to attract foreign individuals and businesses to establish a presence in Labuan and take advantage of its favourable business and tax environment.
The work permit provides individuals with the opportunity to live and work in Labuan while enjoying several benefits and privileges. The employment pass program is open to both professionals and business owners who are interested in exploring the opportunities available in Labuan.
Investors intending to set up a business in Labuan can refer to the following link.
TYPES OF LABUAN EMPLOYMENT VISAS
- Professional Visit Pass (PVP) –
This pass is given to highly qualified foreigners who temporarily perform services for a Labuan company on behalf of an international business. The foreign worker is hired by the corporation in their native nation under this pass. PVP is good for up to a year. The Malaysian immigration department is where the sponsoring company must submit an application for this pass.
- Employment Pass (EP) –
Employees who are in either
- a top managerial position in a foreign firm with headquarters in Labuan,
- a professional or mid-level managerial position, or
- a highly skilled non-executive post, are eligible for an employment pass. The job offer must be from a Labuan company and must be for a minimum of two years with a monthly salary of MYR 10,000.
Companies based in Labuan that operate in licensed industries must have paid-up capital of at least MYR 250,000 in order to hire international employees. To qualify for an employment pass quota, licensees in the financial services and insurance industries only need to satisfy the regulatory capital criteria.
- Visitor’s Pass (Temporary Employment) –
Workers in manufacturing, plantations, agriculture, construction, and services may consider obtaining a visitor’s Pass.
The requirements for this pass are that:
- Employees must be between the ages of 18 and 45;
- They may not change occupations without the Ministry of home affairs’ permission; and
- They may not work in Malaysia for more than five years.
The Malaysian Second Home Program (MM2H), the Malaysian local private limited company (Sdn Bhd) work permit and the Labuan business work permit (also known as the Labuan director visa) are three routes for foreigners to secure long-term residence in Malaysia.
WHAT ARE THE ELIGIBILITY REQUIREMENTS TO APPLY FOR A LABUAN WORK PERMIT?
The applicant for a work permit must make at least RM10,000 per month, or its equivalent in any other foreign currency. The earnings could consist of the following:
- Basic salary;
- Cash stipends for accommodations, meals, transportation, and other expenses;
- The cost of a place to live; and
- Additional commissions and costs.
The following can be taken into account when deciding whether a person is fit and proper for a position:
- Whether the person is or has been involved in any disciplinary or criminal procedures or has received notice of any ongoing or upcoming proceedings, an investigation that could result in such legal action;
- Has been accused or found guilty of a crime in any court. Such as a crime involving dishonesty, fraud, financial crime, or another being a part of any severe misdeeds, criminal activity, or other misconduct
- Has disregarded any regulations and standards set forth by a regulatory organization, professional association, or government or its agencies that are significant enough to affect one’s fitness and propriety;
- Has violated any rules established by or under any written law aimed to shield the general people from financial damage as a result of fraud, negligence, or malpractice.
- The applicant has shown via his credentials and experience that he has the ability to successfully carry out the related duties of the post, including the implementation of an efficient control regime;
- has never had disciplinary action taken against them by a professional, trade, or regulatory organization, or being demoted or asked to leave a job or office due to negligence, incapacity or poor management;
- is well-versed in the business and the duties related to it.
C. Soundness of judgement
- The applicant has displayed a sufficient level of maturity, reason, and balance in behaviour and decision-making, particularly in light of prior business practices;
- does not have a record or evidence of previous business conduct and activities of a deceitful, oppressive or otherwise improper in nature
D. Financial standing
- Whether the applicant at any time during the last ten years has been the subject of any adverse judgement in Labuan or elsewhere,
- Reached a settlement or agreement with his creditors and family members, or have a winding-up petition filed for it in any court, presented bankruptcy, having one’s assets locked up, being deemed bankrupt
DOCUMENTS REQUIRED TO APPLY FOR A LABUAN VISA
- three copies of the applicant’s detailed resume.
- Three copies of the passport must be provided (all pages must be included, the information page must be notarized, and the passport must be valid for at least two years).
- Two copies of the highest educational certificate are necessary; a bachelor’s degree is the minimum requirement. The degree certificate must be attested by a Notary Public.
- Four passport-sized, coloured photos of the applicant with a white backdrop are required.
- a three-year business plan that includes an organisational chart and forecasts for revenue
- 2 signed reference letters from respectable individuals
- Description of business
- Organisation chart
- The applicant’s job description.
- A copy of the employment contract or letter of appointment between the company and the applicant.
- Income tax reference number
- Tax reference for the Labuan entity;
- reference to employer’s taxes; and
- Tax reference for the employee.
PROCESS OF APPLYING FOR A LABUAN EMPLOYMENT VISA
- Relin consultants will assist with creating a thorough business plan that details the applicant’s intended business activities, a market study, financial estimates, and other relevant details. This business plan will demonstrate their dedication and intentions for starting a company in Labuan.
- The application and the required documents listed above will be sent to the Labuan Financial Services Authority (Labuan FSA) or the approved organisation in charge of handling Labuan visa requests. Any special instructions or guidelines provided by the authorities must be followed.
- The application and supporting documentation will be examined by the Labuan FSA or the appropriate agency. They might investigate the background and assess the proposed business activities. Although the processing time can change, the applicant will be informed about the progress of their application within a fair amount of time. The applicant will receive the Labuan Visa if they are approved.
- The applicant may only engage in activities that are permitted by Labuan law.
- The authorised work permit can be used only to carry out business operations for the Labuan organisation.
- According to the Labuan FSA’s Guidelines on Fit and Suitable Person Requirements, all candidates must meet the fit and suitable requirements.
- If these compliance standards are not met, Labuan FSA, relevant domestic authorities, and law enforcement agencies in Malaysia may revoke the recommendation for a work permit and take other disciplinary actions.
LABUAN WORK PERMIT RECENT CHANGES APPLICABLE FOR NEW APPLICATIONS
The most recent updates to the two-year work permit application have been issued by the LFSA (Labuan Financial Services Authority), and they took effect in April 2019. These are the main adjustments for the new application:
- The minimum monthly wage of RM 10,000 must be declared; the tax rate on this salary might range from 0% to 28% depending on resident status. After two years, the applicant must submit the most recent three pay slips with proof of payment, Income Tax Form EA for the most recent year, in order to renew the work permit.
- Organisational structure, target market, business objective, products or services offered, and a minimum three-year financial projection must all be mentioned in the company business plan.
- The business must have a functioning office before submitting a work permit application. After two years, they must present an updated rental agreement in order to renew your work permit.
- Each applicant is required to submit two letters of recommendation from professional organisations.
RENEWAL OF A LABUAN WORK PERMIT
The Labuan work permit is valid for two years, and it must be renewed subsequently. Three months before the expiration date, a renewal application must be submitted. Directors must prepare a number of documents if they wish to renew their work visas. The time between application and approval for a Labuan work permit renewal should be between one to three months. Following approval, the applicant (director and family member) must go to Labuan Immigration to obtain a passport visa.
ADVANTAGES OF OBTAINING A LABUAN VISA
- Holders of work permits are permitted to stay and work on both Mainland Malaysia and Labuan Island.
- Even a non-trading business focused on asset management, such as Business Consulting, is able to acquire a work permit.
- While holding a work permit in Malaysia, it is possible to conduct meetings and business trips between Labuan and other nations.
- Renewing a Labuan work permit is simple. It can be renewed every two years.
- With the multiple-entry Labuan work permit, those who do not currently reside in Malaysia can open personal bank accounts there.
What is a Labuan visa?
A Labuan visa refers to the several categories of visas that people can get if they want to conduct business in Labuan, Malaysia. The Labuan Business Work Permit or Labuan Director Visa, which enables people to run a business in Labuan, is the most popular Labuan visa.
Who can apply for a Labuan visa?
Individuals of all nationalities who wish to engage in business operations in Labuan may apply for a visa. There are no eligibility limitations based on nationality.
When should my work permit be renewed?
The Labuan Visa renewal application must be sent 6 months before the expiration date.
When may I apply for a dependent visa?
Couples and minor children can also submit a work permit application at the same time.
Who are eligible to apply for a Labuan Company work permit?
The Labuan Company accepts work permit applications from all directors, stockholders, and qualified foreign nationals for open jobs. The company business plan will be submitted along with the work permit application. Therefore it must be detailed, and all job applicants’ positions must support the business’s nature.
Is physical presence required at the Immigration Department in order to obtain the visa?
According to the Immigration Act, applicants are required to be present at the Immigration Department while getting their initial visa stamped. If necessary, a brief interview may take place prior to stamping. There is no requirement for physical presence when getting a visa renewed.
How long does the visa application process take?
The Labuan Authority and the Immigration Department must both approve a Labuan work permit. The entire process could take 45 to 60 days.
Is a Labuan employment pass holder eligible to reside and work with a Labuan work permit?
The Labuan employment pass allows you to live and work in both West Malaysia and East Malaysia, provided you can provide a rental agreement for the respective address.