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!