Labuan may seem like a favorable opportunity to establish an offshore company. The jurisdiction is a federal territory of Malaysia. So it combines all the advantages of this country and introduces new ones, especially in the financial sectors. Among these advantages are favorable tax conditions, well-developed infrastructure and the overall ease of establishing an offshore company.
Forms of Legal and Business Presence
If you want to incorporate in Labuan, your business and legal presence can be established in one of the following offshore forms:
Private Limited Liability Company – a company in which the liability of the shareholders is limited to the value of the contributions made. In this case, the shares cannot be freely transferred to the public. There is no requirement for a minimum authorized capital.
Private Unlimited Company – as its title suggests, the shareholders bear full responsibility for the results of the company's activities.
Public Limited by Shares – a means by which shares can be offered to the public. This is a more advanced form of doing business, which is designed to involve additional financing, entering the stock markets. The amount of authorized capital is determined on a case-by-case basis.
Limited Liability Company – this company provides for limited liability of its shareholders, which is limited to the amount of contributions made and certain additional amounts that the shareholders are willing to cover. This vehicle is mostly used for carrying out unprofitable activities.
Limited Partnership – can be established by at least two founders: one of them bears unlimited liability for the results of the entire activity of the company and at least one partner who bears unlimited liability for the results of the activity of the company.
Limited Liability Company – a company can be established by at least two business partners whose liability is limited to the amount of contributions made.
Branch – a foreign person can establish its own branch in Labuan to carry out certain types of commercial activities.
Representative Office – this formation is designed to explore commercial opportunities in Labuan and promote a foreign legal entity.
Registration Requirements and Steps
Establishing a company in Labuan requires passing the following preliminary steps:
Determination of business objectives to be met.
Checking the name of the future company.
Collecting information about the founders, beneficial owners and management of the commercial company.
Setting the registered office of the future company.
Preparing the regulatory documents for establishing a company.
Submitting the package of documents to the Labuan Business and Financial Center for state registration.
Registration for tax and social security purposes.
Opening a bank account for the newly opened company.
Obtaining the necessary permits and licenses (required for certain types of commercial activities).
Incorporating a legal entity in Labuan is more than simple and straightforward. The procedure can take only about a few weeks. The local environment is very favorable for foreign investment.
The main legislative acts regulating the establishment and operation of a local corporate entity are the Labuan Companies Act and the Labuan Business Tax Act. The requirements of the Labuan Financial Services and Securities Act should also be considered in certain cases.
The main government authorities in the case of starting and running a business in Labuan are the Labuan Financial Services Authority, the Central Bank of Malaysia, the Inland Revenue Board.
Advantages of the jurisdiction
Establishing a company in Labuan can be promising in view of these main advantages that the jurisdiction has:
Offshore companies can carry out certain activities without any permits (e-commerce, trading, consulting services, export and import operations)
Free zone regime
Many incentives, including taxes
Zero exchange controls
High level of confidentiality with minimal disclosure requirements
Good measures to protect property
Labuan Tax System
If you are thinking about setting up a company in Labuan, the following tax highlights may be useful:
Corporate Income Tax (CIT) rate – 3%
Personal Income Tax rate – progressive rates can vary depending on the income of residents. However, the tax does not apply to non-residents.
VAT – 0%
Withholding Tax Rates – not applicable
Capital Gains Tax Rates – 0%
How our experts can help
Let’s say you are evaluating setting up or purchasing a company in Labuan. In this case, the lawyers of "Smart Startup UK" are ready to put this option into practice by providing legal support for the following aspects of business registration in Labuan:
Request and collect all data and documents for opening a business in Labuan;
Choose the name and in the interests of the client, all negotiations are conducted by us with local authorities and banks;
We arrange the legal address, accounts and employees, as well as all necessary documents for applying for the future company;
We provide comprehensive legal support for the further functioning of the new legal entity in Labuan.
The portfolio of specialists of "Smart Startup UK" is formed by more than 8,000 cases in the field of registration and support of international business. Our lawyers will apply this experience to the goals of your project.
CREATE A COMPANY
Company name check and reservation
Company registration, including government fees
Obtaining an administrative identification number
Registering the company with government agencies
Writing a company charter
A set of company charter documents in electronic form
Bank contribution for the company's authorized capital
Obtaining a foreign investment permit
Opening an account at: Hong Leong Bank, Labuan Offshore Financial Services Authority (LOFSA)
Opening a personal bank account
Apostille and translated corporate documents
Obtaining a residence permit
Free consultation
Help with online trading and opening an account at viva.com for online trading
Accounting services - 12 months
Accounting services
Annual renewal 1000 Euro (paid from the second year)
*Within 35 days
IMPORTANT! We can provide you with the initial share capital (if the amount is over 5000 Euro) for registering your company in the form of a loan from our company.
Please, if you are interested, make an inquiry to us.
What is the procedure!
1. You submit an application for company registration using the application form.
2. We check whether the company name for registration is available and eligible for registration.
3. Choose a bank that meets your company's needs from a list of Smart Startup UK partner banks.
4. We send you a proforma invoice for payment to be paid to our bank account + the amount for the initial capital of your company.
5. You receive all the necessary company documents for reconciliation.
6. You receive details of your newly opened bank account.
7. Within the specified period (for Labuan it is 35 days) you receive all the services included in the package.
8. You can manage all the services included in the package through our platform, as our team works 24/7 and you can get help from us within up to 30 minutes. We have built an internal ticket system for our customers, through which we process each of your support requests.
All services such as management, accounting, bank account opening requests, licensing, tax return filing, tax payment and more are carried out through your account on our platform, making it easier to manage your business!
