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Labuan Company Incorporation

Updated:2018-3-21 18:29:38    Source:www.tannet-group.comViews:372

Labuan company incorporation is a hot choice for foreign investors to setup and extend business in oversea. Labuan is a special region of Malaysia, which acts as one of the main offshore centres in Asia. Over the years, the region has becom e very attractive for the foreign businessmen who wanted to open a company in Malaysia, due to its taxation regime and the business incentives provided to those operating a business in Labuan.

Benefits for Labuan Company Incorporation
Here are some of the attractions for owning a Labuan company:
1. 100% Ownership and Control - Foreigners will totally own the Malaysian business;
2. Low tax rate at 3% of audited net profits or fixed tax of RM20,000;
3. Minimum Requirement - 1 same director + 1 same shareholder;
4. Director fee or dividend is non-taxable;
5. Labuan Legislation - The law is stable and will remain unchanged for many years;
6. Double Taxation Agreements, DTAs - You are protected in avoidance of double taxation;
7. No tax or audit is required for investment holding company;
8. Most businesses do not require trade licenses;
9. Flexibility to operate with Ringgit Malaysia or foreign currencies bank accounts.

Requirements on Labuan Company
1. Shareholders and Directors
You require at least one shareholder and one director for you to incorporate an offshore company in Labuan. Both the shareholder and director can be corporate companies.

An offshore company should have a resident director. It is not a must to have a resident director, but you must employ a resident secretary. This position should be filled as a trust company. We can assist you to fill this position as a trust company.

2. Physical Office
Most people wonder whether they need a physical office in Labuan to have their company incorporated. The truth of the matter is that you don’t need a physical office. However, Labuan companies that are applying for a marketing office and all licensed entities like insurers, bankers and money brokers must have physical offices within the region.

3. Paid-up Capital
The minimum share capital of a Labuan company is established at USD 1.

4. Name Approval
The name shall contain any word or abbreviation thereof in the national language of any country with an accurate and certified rendition of the name in the English language provided. The client may choose any name, but Labuan FSA has the discretion to reject the name if it is undesirable or involves a name that the Registrar is not willing to accept. Approval by the Registrar is within 24 hours, and the name will be reserved for a period of three months.

Contact Us
If you have further inquires, please do not hesitate to contact Tannet at anytime, anywhere by simply visiting Tannet’s website, or calling Hong Kong hotline at 852-27826888 or China hotline at 86-755-82143422, or emailing to You are also welcome to visit our office situated in 16/F, Taiyangdao Bldg 2020, Dongmen Rd South, Luohu, Shenzhen, China.

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