Labuan company formation takes approximately 2 - 3 weeks to incorporate.
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.
Taxes are levied at a flat rate of 3% on the net profits (subject to fulfillment of substance requirements by business with falling under the specified business activities).
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.