Labuan Company Incorporation and Management Service

Bona Trust Corporation provides Labuan Company Incorporation and Management Service.

Labuan Incorporation

 


1. Features of Labuan company

The main features of Labuan company are as follows:- (Ref: “About Labuan Company“)

 Time to establishmentAround 4 – 6 working days
● Dormant CompanyYes
● Legal effective tax rate
3% (Asia region minimum tax rate)
● Accounting audit systemYes
● Secretarial service systemYes
● Nominee shareholderYes

Labuan company refers to “A company established in compliance with Labuan Companies Act 1990” or “A company established outside Malaysia as a foreign company under the same law” and conduct business activities in compliance with laws and regulations, it is stipulated the service of the Trust Company must be used.

Labuan company does not have a minimum capital system, it is possible for 1 shareholder and 1 director (even a non-resident), but employment of a secretary (company secretary) is mandatory.

The company secretary is “a title that creates and keeps documents related to corporate registry, creates minutes of shareholders meetings and board meetings.” In the case of Labuan, the trust company is supposed to perform the company secretary business.

Almost Labuan companies are established as a limited liability company [*1], but bearer shares (share certificates not listed) are not allowed.

Regarding the tax rate, it is 3% of the accounting audited income. Accounting audits are conducted by the auditor authorized by Labuan Financial Service Authority (LFSA). Declaration and tax payment must be done by the end of March the following year.

In addition, since the registration address of Labuan company is stipulated to be located in the office of Labuan Trust Company, the registration address of the company must use  Trust Company’s address. Furthermore, it is stipulated records of accounting audits must be kept in Labuan.

* 1 As corporate name of limited liability company, “Incorporated (Inc.)”, “Limited (Ltd.)”, “Corporate Limited (Co., Ltd.)” etc must be attached after coeporate name.

* 2 There are 2 address concepts in Labuan company. One is “the registered address (head office address)”, and the other is “the business office address (Management Office Address)”. Management office is optional.

Share CapitalPermitted CurrenciesAny Foreign Currency except Ringgit Malaysia
Standard CurrencyUSD
Minimum Issued CapitalOne (1) in domination in foreign currency
Authorised CapitalN / A
DirectorsMinimumOne (1)
Corporate DirectorsAllowed
Local Directors RequirementsOptional
Publicly Accessible RecordsNot in public
OthersPossible for the same person as the shareholder
Migration to the mainland of Malaysia is possible with work permit
ShareholdersMinimumOne (1)
Bearer SharesNo
Corporate ShareholdersAllowed
Local Shareholders RequirementsOptional
Location of MeetingAnywhere
Minimum Numbers of MeetingOne (1) Annually
Publicly Accessible RecordsNot in public
Otherspossible for the same person as the director
Company SecretaryMinimumOne (1)
RequirementsA resident secretary who must be a trust officer of a trust company or Labuan / Malaysian domestic company wholly-owned by the Labuan trust company
Registered OfficeRequirementsPrincipal office of a trust company in Labuan
AccountsRecordsMust keep in Labuan
Preparation of AccountsYes
Audit Requirements and filingOptional, but required for Labuan companies opting to pay tax at 3% p.a. on the audited net profits and also, licenced companies
Publicly Accessible RecordsNot in Public
Annual RequimentsAnnual ReturnNot later than 30 days from the anniversary date of incorporation of the Labuan company
Annual Government FeeOn or before the anniversary date of incorporation of the Labuan company
Tax FilingAnnual tax return needs to be filled with Malaysian Director General of Inland Revenue by 31 March of that year of assessment. Normally, an extension of time for filling is allowed by the Inland Revenue.
TaxationTrading Activities3% of net audit profits
Non Trading ActivitiesNil
Trading and Non Trading Activities3% of net audit profits
OthersNo withholding tax, no capital gain tax, no stamp duty on offshore instruments
GeneralLegal SystemCommon Law
Corporate RedomiciliationYes
Double Taxation Treaty AccessYes (* Excluded from tax treaties with Australia, Chile, Germany, India, Indonesia, Japan, Luxembourg, Netherlands, South Africa, Spain, Sweden, Seychelles, and the United Kingdom.)
Foreign Exchange ControlNo

2. About Labuan Company Incorporation

Kindly refer to “Labuan Company Incorporation” on how to incorporate Labuan company.


3. About Labuan Company Annual Renewal

Kindly refer to “Labuan Company Annual Renewal” about how to renew Labuan company.

Should you have any queries, please do not hesitate to contact us.

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