The Labuan jurisdiction represents an important location for opening offshore companies in Malaysia, being one of the most representative business destinations in the Asian region in this sense. The jurisdiction is a very attractive location due to its tax regime applicable to foreign companies, but also for the flexible conditions available for foreign investors. Our team of company formation agents in Malaysia can offer an in-depth presentation on the main advantages the investors can benefit from if they register a company in Labuan, Malaysia.
Labuan offshore companies
Those who are interested in company formation in Labuan, Malaysia, can register an offshore company following a simple procedure. An offshore company refers to any type of business which is registered outside the country of residence of the investors.
In Labuan, Malaysia, investors can incorporate two main types of offshore companies:
• trading companies;
• non-trading companies (also known as holding companies).
We invite you to watch a video that explains how you can set up an offshore company in Labuan:
Legislation for trading companies in Labuan, Malaysia
As a general rule, the offshore companies in Labuan are registered following the same procedures, but the local authorities impose different laws referring to the corporate taxation of such businesses.
Trading companies are regulated under the Labuan Business Activity Tax Act, which prescribes a 3% tax on corporate income. Our team of company incorporation representatives in Malaysia can offer assistance on how to comply with the taxation requirements available here and on other matters, such as the trading rules. For example, Labuan companies are limited in terms of trading with Malaysian companies or residents.
Another important aspect refers to the fact that the Labuan jurisdiction is a very welcoming region for foreign investors, as they are allowed to incorporate a company with 100% foreign ownership. At the same time, foreigners can start a company with only one shareholder and one director, which can be represented by the same person. Although in Malaysia at least one of the directors of a company should be a Malaysian resident, in the case of the Labuan companies, the provision no longer applies.
Call us now at +6018 777 9956to set up an appointment with our business consultants in Labuan. Alternatively you can incorporate your company without traveling to Labuan.
As a Best March Inc client, you will benefit from the joint expertize of local lawyers and international consultants. Together we will be able to offer you the specialized help you require for your business start-up in Labuan.