Labuan International Offshore Company Set Up & Formation

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

Labuan – the ideal jurisdiction for your international business

A Labuan Company can be registered very fast. The entire process takes less than a week upon submission of the 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%.