Malaysia - MM2H vs Company set up

[Crockefeller]

A question, if anyone could help....

My dad, 65, has looked into MM2H criteria and might consider an application at some point in the future. If he wanted to continue with part time work (which he possibly can under MM2H rules for 20hrs per week) would he be better to apply under some sort of company set up business visa?

MM2H has certain financial commitments which he'd rather avoid but unsure how they compare to company set up costs, paid up capital etc?

The work would be internet based (CAD work) for current UK based clients.

Thanks!

[anonymous-user]

You can not set up a company on your own, you will need a local partner, (with all the problems that come with that) the number of permits you get is dependent on the paid up share capital and if you have a non trading company then it will cost around 400 pounds a year in audit fees etc, (I have one, although not for residency reasons).
MMH2 is the best, it means that you will only be taxed on Malaysian income, so pension income form overseas is tax free.
The issue with MMHS today is housing, you need to spend around 200K pounds as a minimum and house prices are not rising so that is dead money with exchange risk, or rent which is expensive and again dead money.
As you say MMH2 allows 20 hours of work, there is also a MMH2 type scheme in Indonesia, PM me if you want to know anything specific.

[anonymous-user]

In the circumstance you describe he could work unlimited time, as the 20 hours is for work 'billable in Malaysia' and it would be free of Malaysian tax.

[Crockefeller]

Thanks Berw, I'll pass that info on and point him to this thread. Might be back in touch with further questions....