INCORPORATING A COMPANY IN LABUAN, MALAYSIA

Here at RockVentures, we believe in providing all our clients with transparency in our pricing and offering you the fairest service fees.

Prices below are all quoted in USD.

*On the basis that the Labuan Company is incorporated with an issued and paid-up capital not exceeding the equivalent value of RM50,000, the fees shall be as per stated below.


US$ 3,250

○ Setup and Incorporation Fees
○ Incorporation Administration
○ Provision of Resident Secretary & Registered Office
○ Submission of Tax Return
○ Miscellaneous Disbursement

US$ 3,200

○ Annual Administrative Fees
○ Provision of Resident Secretary & Registered Office
○ Submission of Tax Filing Return
○ Miscellaneous Disbursement

*Note: The above-quoted fees do not include any out-of-pocket disbursements.

RockVentures is able to assist you with setting the up of a company in Labuan, Malaysia.
Below is a compressed version of the requirements, for more information contact us here.

Requirements

Introduction Labuan is federal territory in East Malaysia. An offshore company is only permitted to carry on business in, from or through Labuan. An offshore company in Labuan traditionally May Not:

○ Carry on business with a resident of Malaysia except as permitted by the Offshore Banking Act 1990;

○ Carry on the business of banking or insurance or such similar business unless it is licensed to do under the Offshore Banking Act 1990 or the Offshore Insurance Act 1990;

○ Carry on business in the Malaysian currency except for defraying its administrative and statutory expenses;

○ Carry on the business of shipping or petroleum operations in Malaysia or carry on business as a trust company.

Directors & Shareholders   Requires only 1 director and 1 shareholder, and it can be 100% foreign owned, without local Malaysia partner.
Secretary A minimum of 1 secretary.
Filing of Annual Return
& Financial Statement
It is obligatory for the filing of Annual Return and Financial Statement (may not need, subject to taxation and company operation) to be done each year.

E.g. The company which is an offshore trading can elect to pay 3% on net audited profits or opt to pay tax of RM20,000 p.a.
If companies choose to pay tax of RM20,000 p.a., they are not required to file financial statements. 

Corporate Taxation Access to Double Taxation Agreement.

Offshore company carrying on an offshore business activity which is an offshore trading activity – 3% of net profits as per audited accounts; or may elect to be charged to tax of RM20,000.00 instead.

Offshore company with no accounting period or periods ended in the preceding year. –  RM 20,000.00

Offshore Company carrying on an offshore business activity which is an offshore non-trading activity –  Zero Tax

Setting up a trading company in Labuan jurisdiction is an ideal choice as it offers a wide range of business activities permissible under the regulation of Labuan Financial Services Authority. Additionally, Labuan jurisdiction being a midshore jurisdiction, offers the provision of dealing with the local market which is subjected to the local tax regime. With this advantage, more business opportunities and flexible trading methods are generated for foreign and local owners.

KEY ADVANTAGES OF A LABUAN TRADING COMPANY

  • Corporate tax 3% on audited net profits for International dealings.
  • Corporate tax 24% on audited net profits for Malaysia dealings.
  • If annual revenue for Malaysia dealings is more than RM 500,000, 6% GST is applicable.
  • No withholding tax on interest, dividends, management fees and royalty.
  • No SST & GST.
  • No stamp duty on transfer of shares and in Labuan business activities.
  • 0% personal income tax on Directors’ fees for foreign Directors.
  • 50% tax rebate on personal income for foreign high management employments
  • 65% tax rebate on personal income of Malaysian high management employments.
  • More than 70 countries in DTA.
  • Able deal with Malaysian by permanently elects corporate tax 24%.
  • Labuan offshore banks do not have foreign exchange control.
  • Labuan offshore banks imposed no tax on interest earned on deposit placements.

Labuan Investment Holding Company (IHC) offers 100% foreign ownership which is one of the key propositions to attracting many business owners to acquire overseas businesses, stocks and even real estates while enjoying ZERO tax! It can be utilised as a structuring resolution due to the ownership is preserved and to consolidate all foreign companies and entities under one holding company. This method of structuring is deemed beneficial whereby acquisitions would be simpler when purchasing or liquidating as a whole unit. All dividends received are ZERO tax subject however any foreign capital gains and rental proceeds are taxable in respective jurisdictions of the real estates. Occasional stocks holding will be 0% tax on its capital gain.

Setting up the Labuan IHC is fairly easy with a minimum of one Director and Shareholder, both being the same individual or a legal entity while you are in full compliant by submitting your annual Management Account for non-trading activities!

KEY ADVANTAGES OF A LABUAN INVESTMENT HOLDING COMPANY

  • 100% foreign owned with single ownership
  • Able to invest in Malaysia and overseas real estates
  • NO Tax and NO Audit Report required
  • NO Inheritance Tax
  • Permitted to open a multicurrency bank account
  • Able to conduct Trading activities, subject to 3% corporate tax with audit
  • Able to deal with Malaysia companies, subject to 24% corporate tax with audit
  • NO withholding tax on Interests, Management Fees and Royalties.
  • 0% Personal Income Tax for Foreign Directorships
  • 50% Personal Income Tax for Foreign Employments

Industry Guides for Labuan Companies

TRADING
General Trader
Commodities
Dealmaker

IMPORT & EXPORT
Importer
Exporter
Merchant
Distributor
Wholesaler

CONSULTANCY
Agency
Trainer
Advisor
Coaching

E-COMMERCE
Online Store
E-service provider
Digital Products

INTERNET MARKETER
Internet Advertiser
Web Designer
Blogger
SEO Specialist

FINANCIAL SERVICE PROVIDER
Forex Trader
Banker
Insurer
Leasing
Fund Management

PROFESSIONALS
Lawyers
Accountants
Auditors
Broker
Financial Planner
Fund Manager

INVESTMENT HOLDING
Real Estate
Equity
Bonds & Funds
Gold and Raw Minerals
Company

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