Labuan is Malaysia’s offshore jurisdiction and a solid financial center where various international entrepreneurs are enjoying the business benefits provided here. Ready to start an offshore company in Labuan or interested in other business entities? You can read this article and then discuss further details with our local specialists.
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Main company types available in Labuan
We present you some of the main business types you can set up in Labuan:
- the offshore company is the Labuan International Company (IBC), which allows 100% ownership. This is the most popular business structure that can be set up with a minimum share capital of USD 1 and at least one shareholder;
- private and public companies limited by shares are also available for international investors in Labuan, Malaysia;
- the company limited by guarantee in Labuan is usually selected for holding structures or non-profit activities;
- there is also the possibility of opening an offshore limited partnership in Labuan; however, not in all business sectors;
- branches are a great option for foreign company owners who want to establish their business presence in Labuan;
- liaison/representative offices are available in Labuan for businessmen who want to test the market first, with different advertising projects in this federal region of Malaysia.
How to start an IBC in Labuan
A Labuan IBC can be set up considering the following conditions and procedures:
- the incorporation starts with the Labuan Financial Services Authority (Labuan FSA), where the company documents are presented; Also, the name verification & reservation are done with Labuan FSA;
- a Labuan IBC must have at least one director to be formed;
- the company can have a local bank account or a foreign one;
- proof of a business address is also required when opening an international company in Labuan;
- these are some of the main requirements for opening a Labuan IBC. For additional information and representation, please contact our local consultants. They can tell you more about the company formation in Labuan.
Benefits of starting a company in Labuan
If you want to develop your business portfolio in Labuan, Malaysia, these are some of the benefits provided in this offshore jurisdiction:
- Opening an offshore company in Labuan is advantageous for those who want to enjoy low taxes. Hiring local staff and having annual expenses of at least RM 50,000 qualify a company owner in Labuan for various tax benefits.
- 3% is the corporate tax rate on trading profits registered in Labuan.
- Foreign investors enjoy 100% ownerships in their companies in Labuan, a solid offshore jurisdiction in Malaysia.
- There is 0% withholding tax on interest, dividends, and royalties payments to foreigners with businesses in Labuan.
- Labuan authorities implemented solid legislation for international investors who can enjoy full confidentiality in the business sector here. As such, there is no public disclosure of company data/records.
- Companies with non-trading activities in Labuan are not levied.
- There is also 100% tax exemption on directors’ fees for foreigners working in companies in Labuan.
Considering the information above, we invite you to find out more about how to open an offshore company in Labuan. Please contact our local experts and enjoy our complete services and personalized company formation services in Labuan.