Labuan

Labuan is a federal territory within Malaysia. There are several islands in the territory, including the island of the same name, Labuan. Since 1990 it has been declared as an international offshore financial centre and a free trade zone.
Labuan Island has a small population of about 100,000 people. Labuan Island itself is located off the northwest coast of Borneo. Labuan is located on major sea and air routes in the Asian region and is Malaysia's only deep-water port. Labuan is a famous tourist destination.

The island also has a good airport with daily flights to Kuala Lumpur and most Asian capitals.
It has a warm, humid tropical climate with daily temperatures averaging around +30°C with two monsoon seasons, from April to June and September to December.
The official language is Malay, however, English, Tamil and various Chinese dialects are widely spoken. Many documents and regulations are available in English. The currency of Malaysia is the Malaysian ringgit (RM).
To date, Malaysia has signed 74 double taxation agreements (including with Russia).

6 simple steps to purchase a company

  1. choosing a country

  2. choosing a bank

  3. payment (by any method)

  4. sending documents

  5. company registration

  6. bank account opening

Main advantages

From all the possible types of advantages that open up to the founders when incorporating a company, it is definitely worth noting:

  1. Lack of currency controls.
  2. The English legal system applies.
  3. Labuan International Business and Finance Centre offers a wide range of financial products and services.
  4. Low operating costs such as rent and labour compared to other major cities in Asia.
  5. No VAT.

Organisational and legal forms of companies

According to the current laws of Malaysia, namely the Labuan Companies Act of 1990 (LCA 1990), it is possible to incorporate your company in the following legal forms:

  1. Labuan Offshore Company
  2. Company limited by shares
  3. Company limited by guarantee
  4. Unlimited company
  5. Labuan Limited Partnership
  6. Labuan Limited Liability Partnership

Features of company incorporation

Based on the analysis of the current legislation regulating the activities of business entities, the following can be highlighted with regards to the specifics of the process of registering your business:

  1. Fast company registration.
  2. There are no minimum share capital requirements here. Share capital may be denominated in any currency other than the Malaysian ringgit.
  3. A minimum of one shareholder is required to establish a company. A shareholder can be an individual or a corporation. Shareholders must not be residents of Labuan or Malaysia.
  4. A local secretary is required.
  5. A registered office is required.
  6. There must be at least one director.
  7. Company names, including those in a foreign language, must include the letter "L".

Taxes and fees

The state has the following features for levying taxes and fees

Annual reporting in the prescribed form is required on an annual basis.

Labuan offshore companies that engage in trading operations pay 3% tax on net income or an amount of RM20,000 (about USD4,800) if the company does not carry out an annual audit. Non-trading companies are exempt from income tax.

No goods and services tax (turnover tax) or value added tax (VAT).

No capital gains tax.

Licensed activities: banking, insurance/insurance-related, fund management, leasing, factoring and company management.

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