A Labuan Company may have these shares structures:

• Company limited by shares
• Company limited by guarantee
• an unlimited company

Types of company

• Labuan company
• Labuan Foreign company
• Labuan cell protected company

Why use Labuan Company?

Companies incorporated in Labuan IBFC may enjoy:

• Access Malaysia’s double tax agreements with 80 countries
• Competitive tax regime
• Labuan Business activities as defined in the Labuan business activity tax 1990 (LBATA 1990) which provides : – Taxation 3% of net audit profits, if the company is undertaking trading activities.
• Company carrying non-trading activities is not charged tax. ie 0%.
• Resources – Access to English and Chinese speaking talent.
• Competitive operating costs.
• No import duties, sales tax or capital gain tax.

• No foreign exchange controls.
• 50% tax exemptions or personal income for non-Malaysian residents holding managerial positions and above in a Labuan company.
• 100% exemption on personal tax income for director’s fee received by non-Malaysian directors.
• Labuan companies (including companies licensed under the law relating to financial services in Labuan IBFC) may set up a marketing office in Kuala Lumpur and/or Iskandar Malaysia.
• A convenient location within the Asia Pacific region.

What are the requirements to set up a Labuan Company?

• Share capital in any currencies except Ringgit Malaysia
• Minimum of one share with no minimum share per value Number of Director
• A Labuan company must have at least one director who can act as resident director
• A Labuan company must have at least one secretary which shall be a Labuan Trust Company carrying out both Labuan trading and non-trading activities.
• Registered office – Must have a registered office which shall be the principal office of a Labuan Trust Company.

Accounting requirements

• Labuan companies are required to submit audited accounts as part of tax filing requirements.
• Under the LCA 1990, there are no publicly accessible records.

Benefits of setting up an offshore company in Labuan:

• Asset protection
• Tax savings
• Perpetual Tax exemptions
• Labuan entities may access benefits under the Malaysia Double Taxation Agreement (DTAs).
• Labuan entities can invest in domestic companies while enjoying the tax exemptions accorded in Labuan IBC.
• Ease of succession/transfer of ownership.
• Enhances confidentiality
• A Labuan trading company has the ability to maintain local office, employ local staff and access to local support services as a relatively low cost.