Labuan Offshore Company

About Labuan

The Federal Territory of Labuan is a region of Malaysia. It comprises seven small islands, of which Labuan is the largest. Labuan lies off the north-west coast of Borneo, 8 km from the Malaysian state of Sabah. It is located on the major shipping and air routes of the Asian Region and is Malaysia’s only deep-water anchorage area.

The nation is economically strong and politically stable. Under the guidance of LOFSA (the Labuan Offshore Financial Services Authority) the Malaysian authorities have invested heavily into the improvement of Labuan’s physical infrastructure, which is now completely modernized. The legal system in Labuan is modeled on the English system, though special laws have been enacted to benefit offshore business operations.

Benefits of Setting up an Offshore Business in Labuan

  • Minimum personnel required for company registration is 1 director and 1 shareholder. May be the same person
  • Company registrants may be from any nationality
  • No need to travel to complete registration
  • Option of 3% tax on corporate profits, or a flat rate of US$6,000
  • Non-trading companies (e.g. holding companies) are exempt from paying corporate taxes
  • No stamp duty, custom duty or VAT
  • Easy registration and compliance procedures for incorporation
  • No trade license requirements for specific industries (e-commerce, import/export and consultancy services)

Key Corporate Features

Type of Company Offshore Trading
Type of Law Common
Shelf company availability No
Time to establish a new company 4 - 8 days
Minimum government fees (excluding taxation) RM1500
Corporate Taxation 3% or RM20,000
Double Taxation Treaty Access Yes
Share capital or equivalent
Standard currency US$
Permitted currencies Any except RM
Minimum paid up US$1
Usual authorised US$1 - US$1,400
Minimum number One
Local required No
Corporate Directors Permitted Yes
Publicly accessible records No
Location of meetings Anywhere
Minimum number One
Corporate Members permitted Yes
Publicly accessible records No
Location of meetings Anywhere
Company Secretary
Required Yes
Local or qualified Local
Requirements to prepare Yes
Audit requirements Not required if company pays a flat tax rate of RM20,000
Requirements to file accounts Not required if company pays a flat tax rate of RM20,000
Publicly accessible accounts No
Requirement to file annual return Yes
Change in domicile permitted Yes

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