Labuan is one of the largest federal territories of Malaysia. It is located in the South China Sea, northwest of Borneo island. Labuan`s area includes 1 large and 6 smaller islands.
Today, this jurisdiction is an actively developing Asian International Business and Financial Centre with a stable circulation of financial flows of Malaysia, the Philippines and the Sultanate of Brunei. The strongest sectors of economy are: banking, financial and insurance services, tourism, oil and gas industry, food industry.
Setting up a company in Labuan can be a good idea both for launching a startup and for a business expansion.
If you are interested in registering a company in Labuan and opening a corporate account in Labuan bank, then here you can take a look at the main advantages of this jurisdiction:
- Labuan is a part of Malaysia with the 3rd greatest economy in South-East Asia;
- Malaysia ranked 23rd place on competitiveness in the world;
- Free Trade Zone and a Free Port;
- High quality of life;
- Favorable climate for investment and development of small and medium-sized businesses;
- Skilled labour;
- Highly developed banking system (more than 60 financial institutions located in Labuan);
- 68 DTAs with Switzerland, Belgium, Canada, Australia, Czech Republic, Germany and others;
- Flexible taxation system.
If you want to set up a company in Labuan remotely you should know that there are only two business types allowed in this jurisdiction: Trading and Non-trading companies.
You can open a Trading Company choosing such business spheres as: import and export operations, banking, financial and consulting services, etc.
And if you want to open a Non-Trading company, you can give preference to dealing with shares, investment, deposits and the like non-trading instruments.
In the first case, if you want to register a Trading Company in Labuan, you will need to meet the following conditions of the Regulator:
- Minimum 1 director and 1 shareholder of any nationality (individuals or legal entities);
- Minimum paid up share capital – 1 USD;
- Statutory audit for all accounts of the company;
- No trade license requirements;
- No requirements for resident director, shareholder or manager;
- No local registered office requirements.
And, in the second case, if you would like to open a Non-Trading Company in Labuan you should meet all the above conditions, except the statutory audit.
Entrepreneurs, who are planning to register a company in Labuan and open a business account in Labuan bank should know that non-trading companies in Labuan are exempt from the income tax. Also, trading companies are subject to 3% income tax on annual net profits.
As for the other taxes, there are no requirements for:
- Custom duties;
- Stamp duties;
- Withholding taxes on dividends, interest payments and royalties.
How to open your own business in Labuan
If you are interested in registering a company in Labuan remotely, it is advisable to order legal advice from a competent specialist. YB Case experts can offer you a full range of legal services including: legal advice on opening a corporate account in Labuan, due diligence of the jurisdiction selected for business, legal assistance in preparing documents and much more.
The registration process usually takes 7 days.