This post is also available in: Melayu (Malay)
Understand the Jurisdictions Setup Requirement Before Proceed Your Register Company in Labuan
Labuan is a federal territory of Malaysia located off the coast of the state of Sabah. The region enjoys several benefits, including low tax and employment visas for staff. Investors planning to register company in Labuan are eligible for the following.
- 100% control of ownership.
- The low tax rate at 3% of audited net profits or fixed tax of RM20,000.
- Majority of businesses do not need trade licenses.
- Double Taxation Agreements, DTAs (investor safeguarded from double taxation)
- A foreign investor gets a two-year business visa (both you and your family).
Why You Should Register Company in Labuan
Labuan has the ideal infrastructure that allows for a favourable environment for company setup. Investors will also get access to well-trained work-force and advanced telecommunication systems.
The tiny island is a “free port” meaning that there are no import or export duties on traded goods. Investors will experience a high level of confidentiality for an offshore company and offshore account holders.
Furthermore, any investor planning to register company in Labuan will access both Middle Eastern and Asian markets.
Lucrative Industries Investors Can Look at
Over a couple of decades, the oil and gas industry has been the main economic contributor to Labuan Island. As a result, this has propelled the island’s economy with more development in marine city, tourism to a duty-free island. The Federal government, with its skilled workers, mostly from the younger generation, is attracting more foreign investors.
Requirements for Registration Process
Foreigners can choose to register company in Labuan under the entity called a Labuan company (limited by shares). The minimum paid-up capital is as low as 1USD. Besides that, you have to fulfil specific requirements to have your company fully incorporated. If you find it strenuous to go through the process, you can get assistance from business solution providers. 3E Accounting is one such service provider that assists an applicant in company incorporation. The following are some of the other professional services they provide:
- Taxation and legal services
- Accounting and auditing services
- Corporate secretarial services
- Payroll and business renewal services
- Human resource service
You can contact them through online or their customer service office line to enjoy their services.
Here are the requirements to register company in labuan for applicants.
1. Company Name Verification and Approval
Every business should have a legal company name duly approved. An applicant should ensure that the proposed name is unique, simple, and not offensive. The process of registration begins by running the name check before approval. Before presenting the proposed names, the applicant must ensure it suits the nature of the business.
In case the name has a word or abbreviation in any other language, it should have an English translation. The Labuan FSA is the agency responsible for the approval of the name before the registrar review.
2. Submission of Relevant Documents
After the name verification and approval, the applicant must ensure that he possesses all the relevant statutory documents. Some of the required statutory documents to register company in Labuan include:
- Memorandum & Articles of Association
- Statutory Declaration of Compliance with the Companies Act
- Identity Certificate
- Registration fee
- Consent form from the director
3. Tax Compliance Status
The tax regulation scheme in Labuan Island is flexible and attractive to an investor. As a trading company, you’ll only need to pay 3% tax approximately US$6,000. Again, the investment holding companies are free from any taxes. Any applicant who plans to register company in Labuan will not be eligible to pay VAT or Capital Gains Tax. Remittance sent back to other countries is not liable for any taxes.
Every registered company is liable to pay an annual government fee of RM 2,600 (approximately US$730).
If you feel that the process of registration is tedious, you can consult the 3E Accounting and get the best professional services.