Located off the coast of the state of Sabah, Labuan is an interesting place. It is given a wide latitude to govern its own affairs. Having said that, it is part of Malaysia that possesses a number of benefits of Malaysian sovereignty, which includes the low tax benefits.
Ever wonder of setting up a company in Labuan? Here’re few things you need to know before heading to the tiny island.
A Labuan company is an excellent business entity incorporated in a low tax jurisdiction. One of the great things about doing business on this tiny island is, all companies can secure Malaysia employment visas for staff. What’s more, Labuan was set up as an international offshore financial and banking centre 26 years ago. Malaysia has a tax haven on Labuan island, offering corporate tax rates as low as 3 percent. Labuan company is permissible to trade with Malaysia company or resident at a tax rate of 25% (which is same as local company tax rate) with the requirement to report the transaction to the Labuan Authority.
As a matter of fact, Labuan company registration is, if properly structured, a legitimately tax-exempt way of conducting in the areas of offshore banking, insurance, trust and fund management and investment holding. For investors who want to enter Malaysian market, Labuan is absolutely the best answer for your offshore company.
And, here’s some benefits that you wouldn’t want to miss:
- 100% Ownership and Control – Foreigners will totally own the Malaysian business
- Low tax rate at 3% of audited net profits or fixed tax of RM20,000
- Minimum Requirement – 1 same director + 1 same shareholder
- Director fee or dividend is non-taxable
- Labuan Legislation – The law is stable and will remain unchanged for many years
- Double Taxation Agreements, DTAs – You are protected in avoidance of double taxation
- No tax or audit is required for investment holding company.
- Most businesses do not require trade licenses
- Flexibility to operate with Ringgit Malaysia or foreign currencies bank accounts
- 2 years business visa available for you and your family(Visa can be extended to include parents)
Ready to setup company in Labuan? You don’t have to jump-start a business but engage with us, we will help you to setup Company for you. Global Link Asia Consulting is a professional team that provide a one-stop-solution which include accounting, taxation, secretarial, and marketing, for you to setup your company in Labuan. Furthermore, our company registration services packages are like a complete toolkit for you to realize your dream in a hassle-free manner, where you don’t have to worry about the red tapes like business licenses application, company names selection as well as business setup.