The picturesque island group of Labuan in Malaysia comprises of a main island called Pulau Labuan and six smaller islands, and is located off the north-western coast of Borneo. It is naturally blessed with a pleasant tropical climate all year round, which makes it a preferred tourist destination. There however is a rather long and tumultuous history linked to Labuan; in the 1800’s it was part of the Brunei Sultanate and thereafter, after being colonies under the British and the Japanese for over a century, Labuan became independent and joined Malaysia in the year 1963. Since then this island has garnered much attention, especially after it was declared an International Offshore Financial Centre in the year 1990.
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Why set up an offshore division at Labuan:
The degree of popularity of Labuan as a preferred location to set up an offshore center is evident from the ever increasing number of banks, insurance and fund management as well as investment holding companies flooding the island.
Advantages of a Labuan company in Malaysia:
A summary of the benefits of establishing a company in Labuan is as follows.
Regulatory:
- One-Stop Regulatory Body
- No Exchange Control Regulations: Offshore companies have no restrictions when it comes to financial transactions due to their exclusively non resident status (under the 1953 Exchange Control Act)
- Attractive Tax Regime
- Offshore companies formed for overseas trading activities may elect to pay tax at either 3% on net profit or RM 20,000 (or about Euro 5,000).
- Tax waivers for non resident shareholders of a Labuan IOFC-based company
- Tax exemptions for offshore companies that earn from offshore transactions for non residents;
- Tax privileges for offshore companies that deal in foreign currency-based transactions
- No Tax on offshore companies dealing with the following:
- Standard investment holding companies
- Trust companies dedicated to funds investment
- Securities
- Employees of offshore companies are taxed on their earned income at only half the normal income tax rate
- Immigration regulations are liberalized for offshore professionals
- Clean track record
- Migration of Domicile Permitted
Confidentiality:
- Appropriate Degree of Confidentiality
- No Disclosure of Beneficial Owner
Infrastructure:
- International Offshore Financial Centre (IOFC)
- Duty Free Status
- Competitive Investment Cost
- Low Operating Cost Environment
- Strategic Location and Modern Infrastructure facilities (including medical, transport and telecommunications complete with a deep sea port)
- Professional support available for offshore development
- Political stability
- Full support and commitment from the Federal Government
How Esmology will help you with setting up an offshore business unit:
Esmology group has a strong local company (in Kuala Lumpur City Center) and vast experience in incorporating a Labuan company for our clients; our range of services includes bank account opening and financial services such as accounting, auditing along with consultancy services on just any aspect related to your offshore business set up and operation.
Please feel free to get in touch with us for any clarification that you may require - simply click the link below to fill up our brief order form and we shall get back to you at the earliest. We look forward to provide our great service to you!
Price :
Company formation + Bank account opening in Labuan from € 1899
Annual fees :
Annual fees for a Labuan company are € 1800 (including registered address renewal, government fees, secretary fees, mail forwarding)
PROCEED TO : Contact us to register / order your company now !