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Company Formation Labuan

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Labuan Company Formation

Updated on Friday 14th September 2018

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open-an-offshore-company-in-labuan.jpgAn offshore company refers to a business which is incorporated outside the country where the investors reside. Labuan (officially referred to as the Federal Territory of Labuan) is a region of Malaysia, where foreign investors are welcomed to register their businesses set up as offshore companies, as the territory represents one of the most important offshore locations available in Malaysia. Businessmen interested in company formation in Malaysia can receive assistance on this matter from our team of company incorporation representatives in Malaysia
 
Here is a video with complete information about how to open a company in Labuan with assistance offered by our Labuan team of company formation agents
 

 

The main advantages of setting up an offshore Labuan company 

 
Since the region developed as a main center for the domiciliation of offshore businesses, Labuan provides an attractive taxation system, alongside with a simpler incorporation procedure. One of the key aspects of the company registration in Labuan, Malaysia, refers to the fact that the local legislation allows full foreign ownership. Moreover, the company can be formed by only one person, who can act as a shareholder and as a director. 
 
The registration procedure can be completed in a period of two weeks and the investor is not required to be physically present in the country, as it would be the case for other types of companies available here. Although most of the companies operating on the Malaysian market require a business permit or license to conduct their activities, in the case of a Labuan offshore company, the investor will not need a permit for the following domains: 
 
  • •    trading; 
  • •    e-commerce;
  • •    import and export activities;
  • •    consultancy services. 
 
Businessmen who need advice on company formation in Labuan can receive assistance from our team of company incorporation agents in Malaysia
 

Can I open a branch or a subsidiary in Labuan?

 
Yes, companies from abroad can decide on establishing branches or subsidiaries in Labuan in respect to the rules of the Companies Commission in Malaysia. In both cases, the documents of such entities need to contain information about the parent company and about the board of managers controlling the branch or the subsidiary in Labuan, Malaysia.
 

Can I set up a trust in Labuan?

 
Yes, investors from abroad can set up trusts in Labuan, in respect to the Labuan Trusts Act 1996 and the following conditions:
 
  • a legal entity or a natural person can represent a trust in Labuan;
  • the assets of a trust can be handled by a representative in the name of a specific beneficiary;
  • there is no need for a minimum share capital for setting up a trust in Labuan;
  • the 3% tax rate is imposed for trusts with trading activities in Labuan.
 
Feel free to talk to our team of advisors for guidance in opening a trust in Labuan or for any other kind of business, including offshore companies in Malaysia.
 

Shelf companies in Labuan

 
Ready-made companies are at the disposal of entrepreneurs looking for a fast implementation of the businesses in Labuan without having to wait for all the incorporation procedures involved. Therefore, a shelf company can be the suitable option for foreigners who can benefit from a series of advantages like no liabilities as there are no activities in the firm. The identification documents plus the incorporation papers are mandatory for transferring the company ownership.
 

Can I receive virtual office services in Labuan?

 
Yes, if you do not want to set up a traditional office connected to your activities, it is best to direct your attention to virtual office packages in Labuan. Such services come with a prestigious business address in Labuan, a local phone number, a fax number and also a virtual assistant who can handle the faxes, the emails and the phone calls in the company, in accordance to the clients’ needs and business requirements. We mention that virtual office packages are at a fraction of expenses compared to the ones for a traditional office in Labuan. If you are planning marketing strategies for your future operations, then a virtual office package in Labuan might be the appropriate solution. Also, a complete communication between the business owner and potential clients or collaborators can be sustained by the virtual assistant. 
 

Taxation applicable to a Labuan offshore company 

 
 
The taxation system applicable in Labuan is very attractive, as it does not impose the withholding tax on: 
 
  • •    dividends;
  • •    interest;
  • •    royalties.
 
The taxation on the profits of the company (registered as a trading company) is at a rate of 3%, while the paid-up capital is set up at RM 25,000 if the investor applied for a business visa. 
 
Entrepreneurs who need assistance for the incorporation of an offshore company in Labuan can contact our team of company formation consultants in Labuan.  
 
 
 

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