WEALTH STRUCTURING · TAX ARBITRAGE
Corporate Setup &
Tax Optimization Hub
Establish your Asian corporate headquarters in an OECD-compliant jurisdiction. Benefit from 100% foreign ownership, corporate tax rates ranging from 3% to 24%, and seamless access to global payment gateways and multi-currency banking.
Which Corporate Structure is Right For You?
Malaysia offers two distinct legal entities. Your choice dictates your tax rate, your banking options, and your visa eligibility.
Labuan Company (Mid-Shore)
*0% tax if the company only acts as an investment holding.
Target Market: 100% Non-Malaysian clients
Banking: Multi-currency (USD, EUR, GBP)
Ownership: 100% Foreign Owned
Payments: Full Stripe & PayPal Access
Sdn Bhd (Local LLC)
*Territorial tax system: Foreign-sourced income is generally exempt if structured correctly.
Target Market: Malaysian & ASEAN clients
Banking: Local MYR accounts & Credit facilities
Visas: Strongest pathway for Employment Pass
Operations: Can hire local staff & rent office space
Tier-1 Corporate Banking & Global Payment Gateways
The fatal flaw of traditional zero-tax offshore jurisdictions (such as the BVI, Belize, or Seychelles) is the inability to open reputable bank accounts due to global de-risking. Malaysia’s substantive compliance framework solves this completely, providing your entity with institutional-grade access to the global financial system.
Stripe Malaysia & Merchant Accounts
Unlike Dubai freezone companies that often face rigorous hurdles and high rejections with payment processors, both Labuan and Sdn Bhd entities are natively supported by Stripe Malaysia, PayPal, and regional processors like Razer Merchant Services.
- SaaS & E-commerce Ready: Legally process international credit card subscriptions without facing offshore hold-backs.
- API Integration: Seamless global deployment with standardized KYC protocols.
Tier-1 Multi-Currency Banking
Malaysia’s regulatory alignment with global Anti-Money Laundering (AML) standards ensures smooth onboarding for non-resident directors. We facilitate direct introductions to premier Asian banks including OCBC, Maybank, RHB, and Standard Chartered.
- Forex Optimization: Hold corporate treasury safely in hard currencies (USD, EUR, GBP, SGD) to mitigate exchange rate risks.
- FinTech Integration: Fully compatible with modern B2B platforms like Wise Business and Aspire for agile payroll and supplier payments.
Unrestricted Capital Repatriation
Governed by the Central Bank (Bank Negara Malaysia), the country operates a highly liberalized Foreign Exchange Administration (FEA) regime. Foreign investors can freely repatriate capital, business profits, and dividends without arbitrary central bank friction.
- 0% Withholding Tax: Dividends distributed to foreign individual shareholders are generally exempt from local withholding taxes.
- Corporate Agility: Seamless structuring for intercompany loans and holding-subsidiary cash flows across borders.
Corporate Setup as your Residency Pathway
While passive residency programs like the MM2H require locking up significant liquidity in fixed deposits, incorporating an active business offers a far more capital-efficient route to long-term residency. By sponsoring yourself through your own entity, you align your professional growth with your personal freedom.
The Sdn Bhd Employment Pass (EP)
Established through the Expatriate Services Division (ESD), the EP is the gold standard for foreign directors. It grants a renewable 2-year residency with full multi-exit privileges.
Capital Threshold: RM 500,000 for 100% foreign-owned advisory firms, or RM 1,000,000 for trading and retail sectors.
Dependent Passes: Legally include your spouse, children (under 18), and parents under a secured long-term visa.
The Labuan Work Permit
The Labuan mid-shore entity offers a specialized residency permit ideal for digital entrepreneurs who do not require a large local physical footprint but seek a reputable Asian residency.
Substance Requirement: Requires a physical office presence (in Labuan or a marketing office in KL) and a local business plan review.
Tax Alignment: Allows for the perfect synchronization of corporate low-tax (3%) and personal tax residency.
The 182-Day Strategy
Securing a visa is the mechanism; triggering Tax Residency is the ultimate goal. For the modern “Nomad Capitalist,” Malaysia offers one of the most compliant and efficient frameworks in the world.
Warning: Legal tax planning requires physical presence and professional substance audits.
The Strategic Incorporation Timeline
Establishing a presence in Malaysia is a structured legal process. While registration of the entity itself is rapid, the full execution—including banking and immigration—requires professional orchestration to ensure compliance with local and international regulations.
Onboarding & KYC
The process begins with a structural audit to determine the optimal entity (Sdn Bhd vs Labuan). We perform mandatory Know Your Customer (KYC) and AML checks. Simultaneously, we proceed with the company name reservation with the SSM or LFSA authorities.
Legal Registration
Preparation and signing of incorporation documents (Memorandum and Articles of Association). Formal submission is made to the Companies Commission of Malaysia (SSM) or Labuan Authority. Upon approval, the digital Certificate of Incorporation and business profiles are issued.
Bank Onboarding
The critical phase. We prepare corporate resolutions and facilitate bank introductions. This stage includes compliance interviews (in-person or remote depending on the institution) to secure your Multi-currency corporate accounts and merchant payment processing gateways.
Immigration / Visas
Once the entity is fully operational and capitalized, the Employment Pass (EP) application is submitted through the ESD or Labuan migration department. This includes the main applicant and all dependent passes for family members, concluding with final passport endorsement.
Note: Timelines for banking and visas are subject to government processing times and compliance complexity. We prioritize speed without compromising legal integrity.
Strategic Corporate Intelligence
Successful jurisdictional arbitrage requires more than just incorporation. Explore our technical analyses on fiscal residency, banking compliance, and cross-border operational scaling.
PILLAR ARTICLE
The Definitive Guide to Malaysian Incorporation
An exhaustive 7,000-word analysis covering the Companies Act 2016, Labuan FSA regulations, and the step-by-step path to 100% foreign-owned corporate status.
Labuan vs. Dubai & Singapore
A head-to-head comparison of mid-shore vs. onshore hubs. Analyze corporate tax (3% vs 9% vs 17%), substance requirements, and the reality of opening USD merchant accounts in 2026.
The Stripe Malaysia Integration Map
Specifically designed for SaaS and E-commerce founders. Learn how to correctly structure your Labuan entity to satisfy Stripe’s regional compliance while maintaining a 3% tax profile.
Ready to Execute Your Asian Expansion?
Don’t navigate the complexities of Malaysian corporate law alone. Schedule a confidential Structuring Consultation to audit your business model, select the correct entity, and orchestrate your banking and residency strategy.
100% Confidential Audit