Labuan is a Federal Territory of Malaysia and makes up for the most part of the island along with six other islands. The Mining Industry (Gas & Oil Production continue to remain the major economic contributors followed closely by the Manufacturing Industry, Tourism and Hospitality and Retail Industry. It is the International Offshore Financial Centre (IOFC). The proliferation of offshore companies in Labuan has resulted in Finance turning up as a significant contributor. Company Formation in Labuan is advantageous as it enjoys a Double Taxation Avoidance Agreement signed by Malaysia with more than 70 countries such as India, the United Kingdom, Singapore, Ireland, Hong Kong, Hungary etc.
As per the latest amendment, a Labuan company can also deal with a Malaysian resident in Malaysian Ringgit.
Taxes are levied at a flat rate of 3% on the net profits.
There are no taxes levied if the company is an Investment Holding Company.
Exempt from paying Withholding Tax on Interest, Sales and Service Tax, Goods and Service Tax, Capital Gains Tax and Withholding Tax on dividends.
REQUIREMENT TO OPEN A COMPANY
Minimum one Director (There is no requirement for a Local Director)
Minimum one Shareholder (Director and the Shareholder can be the same person)
Affordable Labuan incorporation cost which sums up to a Nominal Share Capital at USD 1
The companies in Labuan should have a Local Registered Office Address
There is a mandatory requirement to have a Resident Secretary
There is a mandatory requirement to audit the books
Details of Directors/Shareholders
Passport copies of the Director/Shareholders
Address Proof (Driving License, Credit Card Bill, Bank Statement)
Professional letter from the Bank
Curriculum Vitae of the Director
Preparing of all relevant documents pertaining to Labuan Company Registration
Registering the company with the Tax Authorities
Provision for Local Registered Address
Provision of a Resident Secretary for the company
Scheduling a meeting with the bank officials in order to open a Corporate Bank Account
Provision of Post Company Incorporation Services (if required)
Labuan company formation takes approximately 2 - 3 weeks to incorporate.