For many expatriates working abroad and eager to set up their own business, the Labuan company solution is a good choice. Running a business that can move with you, wherever you go, is the best way to retain and protect your assets. It is possible to register a Labuan offshore company with only one director and one shareholder. The minimum paid-up share capital required is USD1. And don't worry! You don't need to travel to complete registration. Labuan offshore companies have the option of paying corporate tax of either 3% on profits or a flat sum of USD6,000. You can elect the best option for the company each tax year. Tomake it as simple as possible to overview the process, we have listed the most important information below.
Please feel free to contact us for a one-hour free counselling to help us better understand your concept and compare your business idea and vision with the many solutions available in Labuan.
To ensure we get all the necessary approvals from the relevant authorities for setting up your Labuan company, we perform an internal due diligence process in six simple steps.This avoids any disappointment from day one, and ensures a smooth registration of your Labuan company.
1. We align your business nature and structure with tax and compliance. 2. We design your company identity. We ask you to propose three different names to check for availability and decide on the suffix to be used: Co.Ltd., Ltd, Limited, Labuan, LLC, or Inc.
3. You also have to decide the paid-up-capital.
4. You decide whether you need a two-year multiple entry work visa for yourself, partners and family members
5. We finalise the type of bank account you need.
There is a distinct difference between a Labuan company and a local Malaysian Sdn Bhd. You need to know this to be able to make the right choice based on your business nature and to fully comply with all regulations.
While the Malaysia government warmly welcomes foreigners to set up international businesses in Malaysia to enjoy low tax benefits and 100% ownership via Labuan offshore, companies must fully comply with the relevant authorities’ compliance regulations.
Once we have completed the due diligence process to match your business structure to the Labuan business solutions, we will advise you about the right business entity and guide you all the way to incorporate the Malaysia Labuan company successfully.
1. it allows 100% ownership
2. of the low tax of 3% or flat fee RM20,000
3. for investment holding companies, no tax and no audit is required
4. most businesses do not require trade licenses
5. it gives you the opportunity to operate with foreign currencies and Malaysian ringgit accounts
6. it’s permissible to deal with the Malaysian market, corporate tax is only 24%
7. there’s no personal tax for all foreign directors until 2020
8. it gives a 50% personal tax rebate for foreign managerial employment
9. it can includes a renewable two-year multiple entry Labuan work visa than can be extended to include all dependants and parents.
For entrepreneurs and business people looking to raise funds or become venture capitalists, the Labuan Jurisdiction is one of the most ideal places to get started, especially if you target investment within Asia Pacific. A Labuan Mutual Fund can be either private or public, depending on your objectives and the type of investors you would like to attract.
It is also a perfect tool for companies looking to raise funds through crowd-funding platforms. Instead of splitting your equity with investors, you should consider the Labuan Mutual Fund vehicle.
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