Registration of
offshore companies
The attractiveness of Labuan as a tax haven

The attractiveness of Labuan as a tax haven


Labuan is considered as offshore jurisdiction and financial center of Malaysia. The island has a favorable geographical position, and since 1990 the International Offshore Financial Center has been established on the island. Today there are about 60 banks in Labuan.

Jurisdiction includes one of the lowest-priced harbors, which is an ideal option for people who do not want to rivet extra views. Labuan also has one of the largest lists of existing double tax treaties. Day-to-day business on the island is becoming increasingly popular. Labuan offshore firms are often used for investment activities in Korea, Indonesia, China, etc.

Taxation system

The issue of taxation is particularly important for business. In Labuan, there is the possibility of full exemption from the payment of any kind of taxes, in particular for non-trading activities in a jurisdiction. It can be any activity related to the investment of securities, stocks, loans and other investments on behalf of the Labuan government.

For trading, a fixed fee of RM 20,000 per year or 3% of income tax is paid. Companies have the right to choose the most appropriate option. Trading business includes banking, insurance, trading, management, supplies, licensing services, etc.

Also there are mixed, trading and non-trading activities. This type is automatically transferred to the “Trading” format. A fixed fee of RM 20,000 per year or 3% of income tax is paid. Companies can choose the desired tax rate.
When operating outside Labuan, in Malaysia, internal income taxation is 25%.

Why Labuan?

• Low tax or tax-free corporate structures for Asian and foreign companies in order to attract investments.
• Specially developed system for registration and accounting of business and protection of assets.
• A network of treaties for the avoidance of double taxation with a large number of countries.
• International commercial and financial center with modern technology.
• The process of incorporation takes about 2-3 days.
• Famous banks.
• Malaysia is a member of the ASEAN Economic Community and has reached 2.8 billion potential consumers.

IT-OFFSHORE gladly registered for you a company in Labuan in the shortest possible time. A firm in this offshore is one of the most popular and winning ways to start a legitimate international business. For more information about opening a company in Labuan, you can ask our experts.

IT-OFFSHORE organizes the incorporation and creation of the following structures in Labuan:

• International (trading) company.
• An international (non-trading) company, such as an investment.
• Representation.
• Private foundation.
• Trust.
• Protected Modular Companies (PCC).

Labuan is unusual innovative jurisdiction in terms of corporate presence in the heart of Asia; It is ideal for effective business planning, asset protection and tax optimization. Contact our experts, we will create your successful business together!

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