FACTS
- Consist of Labuan island and six small island which located at east coast of Malaysia
- Gained a status as Mid-shore Jurisdiction due to Labuan Companies Act in 1990 which allow both non-residents and residents of Malaysia to establish Labuan companies.
REASON TO INVEST/INCORPORATE IN LABUAN
- supports all of the business owners and investors by designed a business-friendly system anchored around an attractive but simple tax system
- its geographical location also contribute to the reason why many investors flock to the area as Labuan is in close proximity and share common time zones with other Asian financial capitals including Shanghai, Hong Kong, Kuala Lumpur, and Singapore.
- Offers a complete range of business solution structures that revolve around the cross-border transactions, business dealing and wealth management needs.
- for business corporates who want to enter the Asian and/or Islamic markets, Labuan is ultimately the best choice to set up companies as it is one of the top Asian and Islamic finance centers connect both cultures to foreign domiciles.
- Low tax regime for Labuan International Companies
- Can be 100% foreign-owned
- Both local and international trading are permitted. Non-Labuan business activities 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%
- 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
- 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