Is a Labuan offshore company considered as non-resident for Malaysia Exchange Control?
Yes. A Labuan offshore company enjoys dual residency status, being a resident of Malaysia for tax purpose and non-resident of Malaysia for Malaysia Exchange Control purpose. On a weekly basis, LOFSA submits to Bank Negara Malaysia the list of newly incorporated offshore companies together with relevant forms. Upon approval BNM will issue a declaration of non-resident status for each company to LOFSA who will then forward the declaration letters to the respective trust companies. This declaration is normally obtained within 2-3 weeks after incorporation.
