Opening a successful business in Labuan
When we talk about offshore, the most popular jurisdictions, including the Cayman Islands, Switzerland or Bermuda, come to mind from the very beginning. But there are not all known offshore companies that attract the special attention of international investors, for example, Labuan.
Labuan is an extraordinary innovative jurisdiction in terms of corporate presence in the heart of Asia. Offshore is ideal for business efficiency, tax optimization, asset protection. Among offshore firms that have been opened on the island over the past few years, you can count about 60 banks, 220 leasing companies, 180 insurance companies and about 20 trust companies. Very impressive numbers, right?
The main advantages of Labuan jurisdiction:
• A network of contracts to avoid double taxation.
• 0% or minimum business tax.
• 0% capital gains tax.
• Yield 2.8 billion.
• Member ASEAN.
• Modern international and financial center.
• Incorporation 2-3 days.
• Special benefits for registering, running a business and protecting assets.
• Almost perfect tools for asset preservation.
• High confidentiality.
• Exceptionally flexible structures.
• A wide range of assets that can be transferred to a trust / fund.
Labuan is the widest range of financial services, including offshore banking, trust business, investment, insurance, etc.
The following types of companies exist on the island:
• Protected Modular Companies (PCC).
• A private limited company within the shares of its shares (companies limited by shares).
• Private limited liability company within the guaranteed amount (limited warranty companies).
• Representative offices of foreign companies.
IT-OFFSHORE will be happy to assist you with consulting and opening a company in Labuan. We will help you organize and establish reliable business and business management systems.
Features of the opening of the company
Incorporation usually takes from 2 to 7 days. Reservation of the name is valid for 3 months. The minimum share capital is US 1.00. Additional duty is levied on a large share capital.
Taxation of Labuan enterprises depends on business activity. Passive income is not taxed, while residual income may be taxed at a rate of 3% of audited earnings or MYR20,000 (USD 4,700) for each reporting year. The legislation also provides for advance payment of taxes.
Labuan relies on Malaysian international treaties for the avoidance of double taxation as part of Labuan’s tax policy. Currently, Labuan does not intentionally have Double Tax Treaties with the following countries: Australia, Chile, Indonesia, Japan, Luxembourg, the Netherlands, South Africa, South Korea, Spain, Sweden, the Seychelles, and the United Kingdom.
Annual reporting is required. As for the financial, it is required only when the financial statements are audited. Labuan companies conducting licensed activities, as well as companies that have chosen to pay. 3%, you need to file financial statements and go through a full audit. For the rest of the reporting is optional.
The above Labuan structures, with proper planning, can make it possible and successful:
• asset protection;
• tax optimization;
• transfer of assets to the next generation;
• separation of assets and possessions;
• maintaining control;
• succession planning.
Recent events in the world and the sphere of economic sanctions force us to look for new approaches and solutions to stabilize the business and increase it in the future. IT-OFFSHORE specialists will help to solve problems with the quality of service. If you have questions about registering a company in Labuan, please contact us.