Benefits

The benefits of Labuan Company, Limited Partnership, Limited Liability Partnership, Protective Cell Company, Trust, Foundation and other Entities.


  • Corporate Tax:
    • Investment Activities – 0%
    • Trading Activities – 3% or Maximum Ringgit Malaysia 20,000
  • Audit is not compulsory (for certain activities)
  • 0% indirect tax (such as Sales Tax, Service Tax, GST, VAT and Custom Duty)
  • 0% Personal Income Tax for Non-Malaysian Director
  • 0% Stamp Duty – Labuan is a free tax port
  • 50% Exemption on Gross Employment Income for Nor Non-Malaysian Managers
  • No further tax on dividend remitted back to home countries.
  • Tax Residency Certificate available for Company and Individual Shareholder.
  • No Exchange Control Regulations – Free Flow of Funds. Stop Tax heavens Abuse Act does not apply in Labuan.
  • Investment Protection Agreement (IGA) with more than 50 Countries. Protect your investment in the event that it is being nationalized.
  • Private and Confidential. Shareholders, Directors, shareholders and companies’ information are not available for search. Nominees and beneficiaries are protected by Acts
  • Double Tax Treaties (DTA) with more than 70 Countries. Original copy available upon request.
  • 0% Withholding Tax: Dividend, Royalty, Lease Rental, Interest, Technical or Management Fee.
  • Allowed and able to stay and work in Malaysia
  • Full fledge and full services banking system:
    • Onshore and Offshore Banking
    • Can open bank account in other parts of Malaysia, Singapore, Hong Kong, USA etc.
    • Multiple Currencies Accounts with interest bearing i.e. Ringgit Malaysia, SGD, AUD, GBP, RMB, YEN, EURO, USD, Swiss Franc, Norwegian Crone, Hong Kong Dollar, Canadian Dollar, NZ Dollar, AED etc.
    • Fixed Deposit/Certificate of Deposit/Time Deposit (FD/CD/TD), Current Account.
    • Anonymous/Numbered Credit Card, ATM, Debit Card under Company bank account
    • Buy, deposit and withdraw Gold Bullion and other gold products
    • High security Internet Banking System
    • L/C and other trade facilities
    • Not required to be present in Labuan, Malaysia to open bank account
  • No tax estimation, no CP204, no CP205, no tax penalty.
  • Free Trade Agreements:
      • ASEAN Free Trade Area (AFTA / ATIGA)

    • ASEAN-CHINA Free Trade Area (CAFTA / ACFTA)
    • ASEAN-KOREA Free Trade Area (KAFTA / AKFTA)
    • ASEAN-JAPAN Comprehensive Economic Partnership (JACEP / AJCEP)
    • ASEAN-INDIA Free Trade Area (AIFTA / IAFTA)
    • ASEAN-AUSTRALIA-NEW ZEALAND Free Trade Area (AANZFTA)
    • Malaysia-Pakistan Comprehensive Economic Partnership Agreement (MPCEPA)
    • Malaysia-Japan Economic Partnership Agreement (MJEPA)
    • Malaysia-New Zealand Free Trade Agreement (MNZFTA)
    • Malaysia-India Comprehensive Economic Partnership Agreement (MICEPA)
    • ASEAN-EU Free Trade Area (under negotiation)
    • ASEAN-US Free Trade Area (under negotiation)
      • Typical Contents of FTA :
        • National Treatment and MFN Treatment
          National Treatment: Each Member State shall…accord immediately to investors and their investment…treatment no less favourable than that it accords to its own like investors and investments…, and

          Most Favoured Nation (MFN) Treatment: Each Member State shall accord immediately and unconditionally to investors and investments of another Member State, treatment no less favourable than it accords to investors and investment of any other Member State with respect to all measures affecting investment…
        • Fair and Equitable Treatment
          Guarantee of “fair and equitable treatment and full protection and security”. The “full protection and security” guarantee requires the host government “defend the investor or investment against others, for instance, rebel forces”. The “fair and equitable treatment” guarantee provides a type of international due process that protects against unacceptable conduct by the host government.
        • Compensation for Expropriation
        • Liberalization of Service Sector and Equity,
          • Cross Border Supply
          • Consumption Abroad
          • Commercial Presence
          • Movement of Natural Persons
        • Mutual Recognition of Qualifications and Experienc
          e
  • Labuan, as part of Malaysia, is a member country to the following International Intellectual Property Treaties:
    • Paris Convention 1883 (01/01/89)
    • WIPO Convention 1967 (01/01/89)
    • BERNE Convention 1886 (01/10/90)
    • TRIPS Agreement (01/01/96)
    • Patent Co-operation Treaty 1970 (16/08/06)
    • NICE Agreement 1957 (28/09/07)
    • VIENNA Agreement 1973 (28/09/07)