Labuan is a federal territory of Malaysia with an open port and free zone. The currency is the Malaysian Ringgit (RM). Labuan offshore companies use US dollars in business operations.
Advantages of using Labuan as your jurisdiction of choice:
- Stable government and open economy;
- A Labuan International Company may be owned and entirely controlled by non-residents;
- No local co-founder is required;
- Authorised share capital can be 1 US dollar;
- Prompt registration (1–2 working days);
- No licence is required for trading, e-commerce, export/import operations or consulting services;
- GST-free territory;
- Obtainment of business visa offers other privileges – loans permit and real estate acquisition;
- No currency control;
- Wide participation in numerous DTA treaties signed by Malaysia;
- Professional business support;
- Commercial information is well-guarded;
- No stamp duty;
- Tax advantages for holding companies.
Price structure for company formation in Labuan
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Private company (“Sendirian Berhad” or “Sdn. Bhd.”)
- Corporate directors and shareholders allowed;
- Nominee service allowed;
- Banking, insurance and factoring services are to be licensed;
- No operations in local currency except administrative charges.
What do you need to form a company in Labuan?
Give us a call, or drop us an email, and we will be glad to detail all the requirements for you.
Taxation and statutory requirements at a glance
- Corporate tax rate for trade companies is 3% or a maximum of 20,000 RM (about 5000 USD) and 0% for non-trade companies;
- No inheritance and gift taxes;
- No VAT/GST;
- Holding companies are not taxed on inbound royalties, dividends and other passive income from non-Malaysian sources.
Accounting, audit and filing requirements
All legal entities have to file an annual report, including information on the company’s income and incurred costs, together with an audit report.