Incorporation and Registration Procedures for a Labuan Company
The process of registering a Labuan company can be generalized into these few
- 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
- 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
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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