The Unique Characteristic of a Labuan Company
- A Labuan Company has an excellent confidentiality policy. A Labuan company information cannot be found in any public registry.
- Labuan is located in Malaysia and Malaysia is a politically stable country.
Malaysia is a Commonwealth Country. Laws are based on the English legal system.
- Labuan has a liberal exchange control.
- Labuan has a good banking system and facilities, with tens of onshore banks and offshore banks. Multicurrency online banking account is available for a Labuan Company. Initial deposits can range from USD$10,000 to USD$500,000.
- Malaysia is a major trading country worldwide especially in South East Asia, and Labuan is part of it.
- Labuan Shelf companies are an available for swift business setup or turnkey project.
- Labuan Company has Low paid-up capital requirements. The paid-up capital of a Labuan Company can be as low as USD$1.
- Directors and shareholders of a Labuan Company can host meetings from any location across the world.
- Labuan Company has no restrictions on nationality for directors and shareholders.
- Labuan company has no nationality requirements for directors and shareholders.
- Any currency can be used for a Labuan Company.
- Labuan company adopts no authorized capital and no par value regime
The first very appealing characteristic of Labuan Company is that a Labuan Company can be fully owned by single foreign business owner. This simply means that there is no need to have a local resident partner in a Labuan company. A non-Malaysia can fully owned the Labuan Company. This is why many foreign investors or business owners choose to setup a Labuan Company to operate their international business.
Another important characteristic for the Labuan Company is the low paid-up capital requirements. The minimum paid-up capital is as low as USD1 allowing investors and business owners to start their business with minimum start-up expenditure. Other types of companies in other jurisdictions will have higher or different requirements.
Labuan Company is a type of legal entity that has a very simple business structure. A Labuan Company can be formed by only one director and one shareholder and they can be the same person. Moreover, the Labuan Company can be used as a vehicle for asset and wealth management.
A Labuan Company can be registered very fast. The entire process takes less than a week upon submission of full documentation required for company registration. You can commence the company registration even if you are still in your country of residence.
There is no goods and services tax (GST) or sales and services tax (SST) on sales transactions performed in Labuan. The GST/SST in Labuan is equivalent to value-added tax (VAT), an indirect tax that applies to the sale of goods and services in other countries. It usually range from 5%-10% and sometimes higher. It is one of the taxes payable by companies in many other countries.
Apart from the GST, SST or VAT exemption, there are no withholding taxes on dividends, interest, royalties, management and technical fees. This broad tax exemption policy become an important benefit for all foreign investors and business owners in Labuan.
One of the most important advantage from a taxation point of view is that the corporate tax for a Labuan Company is only 3% on profit, making it one of the lowest in the region. If the Labuan Company is solely doing holding activities, the corporate tax is 0%.
Get Started Now
Contact us via WhatsApp to chat with one of our experienced consultants.
Fill in your details and we will send more information your way.
What our clients has to say
“MCS Corporate Services Inc is a result-oriented team. Focusing to cater my every need in setting up my new company.”
“Thank you MCS Corporate Services Inc for the excellent support in all business matters when setting up the company! We can always give full trust and rely on MCS Corporate Services Inc to complete tasks in a professional and timely manner. Kudos to their team!”
“MCS Corporate Services Inc guided me step by step in setting up my company, providing valuable advices. If I have met MCS Corporate Services Inc earlier, I wouldn’t have wasted so much time searching and understanding the misleading information online.”