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    Labuan Employment Pass

    • Labuan Employment Pass is an essential work permit that allows foreign professionals to work legally in the strategic financial center in Malaysia, Labuan. An employment pass is important for expatriates who work in specialized or managerial roles in Labuan, as it allows them to reside and operate their business smoothly.  
    • Many entrepreneurs who want to expand their reach in Southeast Asia will register company in Labuan, as it has favorable regulations and tax incentives. With Tetra Consultants, we have made this process easy and stress-free. We help clients through every step, from company registration, employment pass, and compliance management, to facilitate a transition to legally operate in the Labuan jurisdiction. 

    Advantages of obtaining Labuan Employment Pass

    Advantages of obtaining Labuan Employment Pass

    Residency and employment permits  

    • The Labuan Employment Pass allows foreign employees to work and live legally in Labuan or mainland Malaysia. This allows the expatriate to perform their work duties while having their family present and gives the family the option of personal convenience.  

    Dependent family member capacity 

    • The holders of the pass may bring an immediate family member on dependent passes, which allows spouses and children to reside in Malaysia as part of the primary visa holder’s family unit. Such a capacity increases the expatriate’s family stability during their work experience. 

    Multiple entry privileges

    • Holders possess multiple-entry privileges, which allow them to enter and exit Malaysia freely. This is beneficial for business travelers who will be required to manage cross-border activities from time to time.  

    Tax advantages 

    • Tax benefits are available to expatriates working for Labuan-registered companies indirectly, namely from Labuan’s tax-friendly environment, including but not limited to low corporate taxes and no tax on dividends, allowing individuals to plan their finances more effectively in a low-tax environment. 

    Streamlined renewal procedure

    • The employment pass is initially made available for a two-year period and can be simply renewed if the employment and compliance status remains the same for the applicant, ensuring long-term certainty while minimizing bureaucratic hassle. 

    Easier financial access 

    • Employment Pass holders and their family members have the option to open local bank accounts easily, which assists with local financial transactions and business dealings in Malaysia. 

    Business sponsorship flexibility 

    • Licensed and non-licensed Labuan companies can sponsor Employment Pass applications, allowing a wide range of business sectors to attract talent from abroad with a minimum of administrative difficulty. 

    Timeline for obtaining Labuan Employment Pass

    • The timeline for getting a Labuan Employment Pass at Tetra Consultants is designed to be efficient. The process starts with a company name reservation, which should take about 2 days, followed by company incorporation, which is completed in 3 days. The Labuan visa application process will then take about 8 weeks to complete; however, there is fast-tracking available. If the client is already in Malaysia, they will need to exit the country and re-enter through Visa on Arrival prior to the Labuan Employment Pass processing. 
    • Once approved, the client visits Labuan for passport submission and visa stamping, which takes around 3 days. The subsequent steps include obtaining the Letter of Information for bank account opening (1 week) and completing the bank account setup within 4 weeks. Overall, the entire process typically takes between 10 to 12 weeks from start to finish. 

    Types of Labuan Employment Pass

    Category I Employment Pass 

    • This pass is designed for high-level professionals, board members, managing directors, CEOs, and personnel in other critical management roles. Applicants must have a minimum salary of RM 10,000 a month, and people can usually receive a 5-year contract of employment. Benefits include the applicants being able to bring dependents, recruit a foreign domestic worker, and enter and exit Malaysia multiple times. This category is intended for roles that are skilled or specialized, and integral to the growth and management of a business. 

    Category II Employment Pass 

    • Aimed at mid-skilled professionals and skilled workers, the minimum salary bracket is RM 5,000 to RM 9,999 per month with an employment contract for up to 2 years. It encompasses roles as managers and professionals providing support to the company’s business operations. Dependent-pass holders may also request dependents in their application, but generally, this does not include a domestic helper option. The pass is intended for companies needing skilled expatriates in a necessary position. 

    Category III Employment Pass 

    • This category consists of non-executive or semi-skilled jobs with salaries ranging from RM 3,000 to RM 4,999 per month. Contracts are usually 1 year and can be extended twice. Dependents are typically not permitted under this pass. It is designed for foreign workers occupying support positions that are essential to the operation of the business but require skill levels that are lower than Category I and II. 

    Temporary Employment Pass (TEP) 

    • The TEP is designed for semi-skilled or low-skilled low-wage workers in sectors such as manufacturing, agriculture, and construction. It is granted for a period of 12 months and can be renewed depending on the employer’s needs, subject to regulatory approval. The TEP allows companies more flexibility when engaging in categories of workforce that are primarily temporary or project related. 

    Dependent Pass 

    • Provided to the spouse and dependent children of Employment Pass holders. This allows the family to live legally in Malaysia with the primary visa holder and provides the right to education for the children. 

    Activities allowed under Labuan Employment Pass

    Working in Labuan registered companies 

    • Employment Pass holders may work only for the Labuan-registered company that sponsors their Employment Pass. The passholder may serve in managerial, professional, technical, or executive positions that are important to the company’s business and growth. 

    Residence in Malaysia

    • Pass holders are legally permitted to reside in Labuan and elsewhere in Malaysia to be physically present in order to effectively carry out their job role. 

    Traveling for business meetings

    • The pass is designed for multiple entries and exits from Malaysia, enabling business travel, business meetings, and interaction with businesses across the border, without being visa dependent. 

    Residence of family dependents 

    • An Employment Pass allows the holder to bring the spouse and children under a dependent pass as a means of residence in Malaysia. This promotes family stability while working away from home. 

    Engage in permitted business activities 

    • Pass holders are expected to only engage in activities that are authorized, per their Labuan company business license, as well as the Labuan company regulatory framework. This means that the Employment Pass holder operates in compliance with Malaysian Laws within Labuan. 

    Financial services access 

    • Holders of an Employment Pass have the ability to open personal banking accounts in Malaysia for the purposes of receiving salary payments and managing finances while residing in the country. 

    Excluded activities under the Labuan Employment Pass

    Working outside of the sponsoring company 

    • Employment Pass holders may not engage in any employment or business activity outside the Labuan company that sponsors their Employment Pass. 

    Illegal or undesirable activities 

    • You may not engage in illegal, unethical, or undesirable activities, or other forms of conducting business, such as fraud, money laundering, business misconduct, and others, as defined by the Employment Pass applicants. 

    Restricted sectors 

    • Applicants must not work in restricted or illegal sectors as determined by the Malaysian government, such as controlled / sensitive industries. 

    Employment pass misuse 

    • The Employment Pass must not be misused for work other than the approved work being performed. Misuse will result in cancellation of the Employment Pass and/or prosecution. 

    Unauthorized work 

    • It is prohibited for foreign nationals to work without a valid Employment Pass or equivalent work permit. 

    Employment without following immigration laws 

    • Violating immigration laws includes the following: employment without permits or making misrepresentations in applications, which can incur penalties, including fines or deportation.  

    Public order and morality 

    • Pass holders or holders of social visit visas cannot participate in conduct considered harmful to public order, security, health, or morality in Malaysia. 

    Regulatory authority for Labuan Employment Pass

    • The Labuan Financial Services Authority (FSA) is the regulating body for the Labuan Employment Pass. Labuan FSA is responsible for managing the application, approval, and compliance of Labuan Employment Passes for companies operating in the Labuan International Business and Financial Center (IBFC). Companies wishing to employ foreign skilled workers in Labuan are required to submit work permit applications to Labuan FSA, which will then liaise with the Malaysian Immigration Department for final approval. 
    • The process also involves compliance with Labuan laws, including business licenses and operational standards. Employers must adhere to applicable regulatory requirements, such as incorporation of the company in Labuan and compliance with employment conditions. Labuan FSA plays a pivotal role in the foreign employment sector while maintaining regulatory standards in this tax-privileged jurisdiction. 

    Steps for obtaining Labuan Employment Pass

    Steps for obtaining Labuan Employment Pass 

    Step 1: Pre‑incorporation preparation 

    • Tetra Consultants starts with the setup process. Please submit an incorporation questionnaire and a business plan that explains the business activities you are intending to perform, your targeted customer channel, and relevant professional or IT experience and qualifications. Make sure to express to our team all services that should be included, including the incorporation of the company, Employment Pass, corporate bank account opening, and rented office space. We will confirm the scope and timeframe before we provide you with a customized engagement plan. 

    Step 2: Document collection and due diligence 

    • During this phase, Tetra Consultants will perform due diligence and check for compliance with Labuan Financial Services Authority (Labuan FSA) obligations. We will verify the intended structure of the company, the background of the management, and the proposed business activities, all of which must adhere to regulations in Labuan.  
    • We will confirm with applicable authorities that supporting documents are accurate and prepared, which aids in a seamless transition into the incorporation and employment pass stages. Once we have confirmed all details, we move forward smoothly toward company registration and subsequent visa applications. 

    Step 3: Company name reservation and incorporation 

    • Tetra Consultants will reserve your preferred company name with the Labuan Financial Services Authority (Labuan FSA), which will normally take approximately 2 days. The incorporation documents will then be prepared and sent to you for signature. Upon receipt of the signed documents, incorporation will be completed in approximately 3 days. Once the incorporation is complete, you will then receive the Certificate of Incorporation and draft share certificate. 

    Step 4: Post‑incorporation formalities 

    • Upon incorporation, Tetra Consultants will proceed to register your company with the tax authority. At this stage, we will also initiate the Employment Pass (work permit) application process for you to ensure a seamless transition to being operationally ready. 

    Step 5: Employment pass application 

    • Tetra Consultants will send the visa application packet to the Labuan FSA for approval, which typically takes about 1 month. After that, it will be forwarded to the Labuan Immigration Department, which ordinarily has 3 to 5 days to make a decision. Clients are advised not to enter Malaysia during this review period to avoid any delays. Upon visa approval, you will sign the share certificate. 

    Step 6: Physical office requirement 

    • To receive Employment Pass approval, employers are required to have a physical office location in Labuan. A signed lease agreement must also be executed within 1 month after the visa endorsement. Tetra Consultants can facilitate office space or make arrangements for an office, depending on your preference, to meet immigration requirements. 

    Step 7: Corporate bank account opening 

    • After your company is incorporated and the visa is approved, Tetra Consultants will submit your bank account application forms to our selected bank. The bank review generally takes approximately 4 weeks, while internet banking is made accessible in approximately 1 week post-approval. Clients are required to pay their company’s share capital into the bank, although there is no regulated minimum capital requirement. 

    Documents required for obtaining Labuan Employment Pass

    • Passport Front Page in Color (certified true copy (CTC) by Notary Public) for the main applicant and dependents (if any) for due diligence purposes. 
    • Passport all pages scanned in color without CTC for immigration purposes for the main applicant and dependents (if any). 
    • If you have any dependents, the Marriage Certificate and birth certificate must be provided, certified true copy by either: (If the documents are not in English, they must be translated) 
      • Your Ministry of Home Affairs in your home country, or 
      • Malaysia Embassy in your Home Country, or 
      • Your Home Embassy in Malaysia.  
    • Utility Bill to prove home residence (certified true copy by Notary Public). 
    • Latest CV and Resume detailing education background and working experiences to be signed with a photo. 
    • Education certificates certified true copy by Notary Public for due diligence purposes. 
    • Education certificates in color (non-certified copies) for immigration purposes. 
    • A Business Plan detailing the nature of the business, such as products or services sold, names and addresses of vendors you buy from, and customer names and addresses you sell to. 
    • Six passport-sized photos (3.5 cm width x 5 cm height) with white background. 
    • Copy of the EA/BE Form issued by the Inland Revenue Board of Malaysia (for renewal applications). 
    • Copy of the latest company’s business profile or registration information. 
    • Employment contract or letter of appointment from the Labuan-based company. 
    • A Statutory Declaration related to the Work Permit application (typically by the Labuan company’s authorized personnel). 
    • Approval or endorsement from the local labor authority (JTKSM approval) for new Employment Pass applications. 
    • Documented proof of minimum salary requirements (usually a minimum monthly salary threshold). 
    • Organizational chart of the employing company, showing the structure and position of the applicant. 
    • Additional due diligence documents or supporting evidence as requested by Labuan FSA for review or clarification purposes. 

    Requirements for Labuan Employment Pass

    • Applicants must have a valid job offer from a Labuan-registered company. 
    • The company must be properly incorporated and licensed in Labuan. 
    • Employment must comply with the business activity approved under the company’s license. 
    • Minimum monthly salary thresholds must be met depending on Employment Pass category (e.g., RM 10,000 for Category I). 
    • Applicants’ qualifications and experience must match the job role (supported by certificates and CV). 
    • Applicants must hold a valid passport with at least 18 months of validity. 
    • No existing Malaysian Employment Pass should be active unless a cancellation letter is provided. 
    • The company must provide an organizational chart showing the applicant’s position. 
    • The company must maintain good financial standing and operational legitimacy. 
    • Due diligence and background checks must be cleared by Labuan FSA, including letter of reference if required. 
    • Directors and shareholders can be foreigners or locals; no strict residency requirement but Labuan business licensing rules must be followed. 
    • Shareholders may be individual or corporate, with disclosure of beneficial ownership required under AML regulations. 
    • Employment contract must specify detailed employment terms including salary, role, and duration. 
    • Pass holders must reside in Malaysia during the employment period. 
    • Companies must submit periodic compliance reports as per Labuan FSA regulations. 
    • Dependent passes are available for immediate family subject to submission of relevant certificates and proof of relationship. 
    • Employment Pass applications require approval from both Labuan FSA and Malaysian Immigration Department. 
    • Pass holders must not engage in unauthorized employment or sectors restricted by Malaysian law. 
    • All legal and statutory fees must be paid as required by the regulatory authorities. 

    Cost of obtaining Labuan Employment Pass

    • At Tetra Consultants, we value transparency and integrity in our Labuan Employment Pass services. We strongly believe in giving our clients honest, upfront information about all fees so that there are no surprises or hidden fees in the course of the process. We focus on creating a pain-free approach, in which you have clarity on every cost upfront, so that you and your team can plan your budget accordingly for your business and personal plans.  
    • In addition, we closely work with the regulatory authority to keep our applications compliant and efficient to move through the process more quickly, reducing time and potential delays. Clients who work with Tetra Consultants receive advisory support from professionals who understand the personal need for tailored support. Our commitment to a hassle-free, honest service also aligns to international best practice. 

    Why choose Tetra Consultants?

    • Tetra Consultants distinguish itself as a reliable partner for Labuan Employment Pass services thanks to our focus on transparency, professionalism, and a streamlined approach. From offshore company incorporation through the employment pass application process, we handle everything with precision and minimize complications to a minimum.   
    • Our clients can be certain that we are clear and upfront with communication. There are no concealed fees or unexpected charges, giving them both peace of mind and their budget.  
    • Due to our extensive experience with Labuan’s regulatory environment, we provide our clients with tailored advice and a support network, allowing investors and businesses to focus on growth while we take care of compliance. Our international expertise, coupled with our local presence, makes us the best option for anybody wanting to navigate the complexity of setting up and operating in Labuan. 

    Key reasons to choose us:

    • Comprehensive support from incorporation to pass approval 
    • Transparent, all-inclusive pricing with no hidden costs 
    • Clear, timely, and professional communication 
    • Deep expertise in Labuan’s regulatory landscape 
    • Customized compliance and advisory solutions 
    • Fast, streamlined process minimizing delays 
    • Global experience backed by strong local presence 
    • Trusted partner allowing you to focus on business growth 

    Looking to obtain Labuan Employment Pass

    • When you choose Tetra Consultants to assist with your Labuan Employment Pass, you also have a broad range of additional professional solutions, beyond just immigration assistance. We provide nominee director and shareholder services, which greatly improve your corporate governance and compliance, trademark registration to protect your brand, and expert legal drafting services for compliance with local laws. We even provide regulatory compliance consulting to ensure that your company stays in line with the developing regulations and risk management advisory services. We also engage in corporate tax planning, financial reporting, setting up bank accounts, and ongoing company secretarial services. By choosing Tetra Consultants, you have a comprehensive, one-stop solution to manage all of your Labuan business from start to finish. 
    • Contact us to learn more about the Labuan Employment Pass, and we will get back to you within 24 hours. 

    FAQs

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