Offshore Company Registration in Labuan
In today’s competitive business environment, starting a new venture involves taking calculated inherent risks and requires a smart financial investment. Entrepreneurs need to carefully select the right location that can help mitigate potential challenges and enhance the likelihood of success.
Opening an offshore company in Labuan has gained significant attention in Malaysia and many other countries. Labuan has a straightforward company registration process, unique benefits, and work permit opportunities, this positions Labuan as an attractive option for establishing a business. Additionally, businesses can take advantage of ship registration services in Labuan, which provide a strategic maritime hub for international shipping operations.
For companies involved in financial services, Labuan private fund structures offer a flexible and cost-effective solution for managing investments. Businesses can also take advantage of asset leasing opportunities and benefit from Labuan’s favourable regulatory framework, making it an ideal jurisdiction for leasing management. To further optimize profitability, our tax planning services ensure compliance while maximizing tax efficiency for businesses operating in Labuan.
Benefits of Opening a Labuan Company in Malaysia
- Corporate Tax:
- Investment Activities – 0%
- Trading Activities – 3% on Audited Net Profits
- 0% indirect tax (such as Sales Tax, Service Tax, GST, VAT and Custom Duty)
- 0% Personal Income Tax on Director Fee for Non-Malaysian Director
- 0% Stamp Duty – Labuan is a free tax port
- 0% Withholding Tax: Dividend, Royalty, Lease Rental, Interest, Technical or Management Fee.
Other Benefits
- Tax Residency Certificate is available
- Private & Confidential on the information related to the Company, Nominees and Beneficiaries
- Employment Pass for Stay and Work in Malaysia
- No Exchange Control Regulations. Free Flow of Funds
- Investment Protection Agreement (IGA) with more than 50 Countries
- Double Tax Treaties (DTA) with more than 70 Countries
FAQ
Yes, companies must meet Labuan’s substance requirements, which include demonstrating sufficient business presence and operational activities in Labuan. Non-compliance with these requirements may result in a 24% tax on audited net profits.
Labuan companies benefit from strict confidentiality protections, ensuring the privacy of information related to the company, its nominees, and beneficiaries.
Yes, companies incorporated in Labuan can obtain a Tax Residency Certificate, which is beneficial for accessing double tax treaties with over 70 countries.
No, Labuan does not impose exchange control regulations, allowing for the free flow of funds in and out of the jurisdiction.
Yes, an employment pass is available for foreign directors and employees, allowing them to live and work in Malaysia.
Yes, Labuan has Investment Protection Agreements (IGA) with more than 50 countries, providing added security for international investors.
Yes, Labuan has double tax treaties (DTAs) with over 70 countries, which can help reduce or eliminate double taxation on international income.
If your Labuan company fails to meet the substance requirements, it will be subject to a 24% tax on its audited net profits instead of the preferential rates.
