Jurisdictions

Labuan

Why incorporate in Labuan?

As one of the few offshore financial centres in Asia, and boasting a low tax regime, Labuan provides an attractive base for many multinational corporations and entrepreneurs.

The Federal Territory of Labuan is part of Malaysia and comprises seven small islands of which Pulau Labuan is the largest. It is located on the major shipping and air routes of the Asian Region and is Malaysia’s only deepwater anchorage.

Labuan is economically strong and politically stable. Under the guidance of LOFSA (the Labuan Offshore Financial Services Authority) the Malaysian authorities have invested heavily into the improvement of Labuan’s physical infrastructure, which is completely modernised and provides a state of the art telecommunications system including an Internet Gateway which provides an e-commerce platform.

More than 50 of the world’s top banks have branches in Labuan.

Key Benefits & Requirements

  • Low tax regime for Labuan International Companies
  • Can be 100% foreign-owned
  • Both local and international trading are permitted. Local trading tax rate is 24%.
  • Trading licenses are not required for businesses involved in trading, e-commerce, import, export or consultancy
  • Businesses are not required to charge sales / service tax or GST on sales transactions
  • No Withholding Tax on Dividend, Interest, Management, Technical and Royalty Free
  • Can act as an Investment Holding Company for assets, wealth management and property
  • Low taxation on profit – only 3% or a flat free of RM20,000
  • Simple set up with only one Director and Shareholder required. Both positions can be held by the same individual
  • No travel to Labuan required in order to set up the company.
  • Registration is quick and efficient, typically complete with 7 working days
  • Registration is quick and efficient, typically complete with 7 working days
  • A Labuan International Company enables the opening of a corporate bank account anywhere in Malaysia
  • Bank accounts can receive transactions in your preferred currency
  • A welcoming and efficient Work Visa and Visa Application process for expatriates, their spouse and their children

Incorporate in Labuan

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