A Labuan Company may have these shares structures:
- Company limited by shares
- Company limited by guarantee
- an unlimited company
Types of company
- Labuan company
- Labuan Foreign company
- Labuan cell protected company
Why use Labuan Company?
Companies incorporated in Labuan IBFC may enjoy:
- Access Malaysia’s double tax agreements with 80 countries
- Competitive tax regime
- Labuan Business activities as defined in the Labuan business activity tax 1990 (LBATA 1990) which provides : – Taxation 3% of net audit profits, if the company is undertaking trading activities.
- Company carrying non-trading activities is not charged tax. ie 0%.
- Resources – Access to English and Chinese speaking talent.
- Competitive operating costs.
- No import duties, sales tax or capital gain tax.
- No foreign exchange controls.
- 50% tax exemptions or personal income for non-Malaysian residents holding managerial positions and above in a Labuan company.
- 100% exemption on personal tax income for director’s fee received by non-Malaysian directors.
- Labuan companies (including companies licensed under the law relating to financial services in Labuan IBFC) may set up a marketing office in Kuala Lumpur and/or Iskandar Malaysia.
- A convenient location within the Asia Pacific region.
What are the requirements to set up a Labuan Company?
- Share capital in any currencies except Ringgit Malaysia
- Minimum of one share with no minimum share per value Number of Director
- A Labuan company must have at least one director who can act as resident director
- A Labuan company must have at least one secretary which shall be a Labuan Trust Company carrying out both Labuan trading and non-trading activities.
- Registered office – Must have a registered office which shall be the principal office of a Labuan Trust Company.
- Labuan companies are required to submit audited accounts as part of tax filing requirements.
- Under the LCA 1990, there are no publicly accessible records.
Benefits of setting up an offshore company in Labuan:
- Asset protection
- Tax savings
- Perpetual Tax exemptions
- Labuan entities may access benefits under the Malaysia Double Taxation Agreement (DTAs).
- Labuan entities can invest in domestic companies while enjoying the tax exemptions accorded in Labuan IBC.
- Ease of succession/transfer of ownership.
- Enhances confidentiality
- A Labuan trading company has the ability to maintain local office, employ local staff and access to local support services as a relatively low cost.