Incorporation and Registration Procedures for a Labuan Company

The process of registering a Labuan company can be generalized into these few

  1.  The applicant must understand and be aware of the legislative framework of Labuan IBFC. This includes understanding the powers and duties of a Labuan company and its members
  2. Name reservation
  • Minimum tax on Labuan trading company upon election annually:
    • 3% of net profits as per audited accounts;or
    • RM20,000 (USD5,000)
  • 0% tax on Labuan Non-Trading activities (Investment Activities)
  • Double Tax Agreements (Treaties) with over 70 countries
  • Withholding tax exemption on payments made to non-residents
  • No import duty / sales tax / capital gain tax
  • 50% tax abatement for expatriate professionals and managers employed under Labuan companies

Accompanying documentation required for Labuan company incorporation application

  • Memorandum and Articles of Association of the proposed company
  • Statutory declaration of compliance by the trust company
  • Consent to act as a director or directors
  • Individual forms filled up by each respective directors
  • Payment of relevant incorporation fee

Approval Process

Upon clearance of the due diligence process conducted by the Labuan FSA and followed by submission of complete documentation and payment of fees, a Labuan company can be approved for incorporation/registration within 24 hours.

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