Investing in Labuan

Further considerations for those who set up a company in Labuan include incentives for investing in Labuan. Consistent economic growth and infrastructure development continues to spur interest in investing in Labuan, and the government actively encourages foreign investment in a wide range of sectors by offering various incentives for those who want to set up a company in Labuan. Some of these incentives for investing in Labuan include:

Those who set up a company in Labuan to promote or are involved in the production of promoted products in areas of new and emerging technologies, qualify for both the Pioneer Status and Investment Tax Allowance incentives;

ii).

Those who set up a company in Labuan that is a small-scale manufacturing company with shareholders' funds not exceeding RM500,000 (approximately US$163,000) and holding at least 60% in equity are eligible for the Pioneer Status and Investment Tax Allowance incentives;

iii)

Entrepreneurs investing in Labuan in certain industries can avail from tax incentives. At present, these industries include emerging technologies, technology-rich projects which require large capital investments as well as small-scale manufacturers. Healy Consultants can provide professional advice on the tax advantages of investing in Labuan.

iv)

Those who set up a company in Labuan and are granted Pioneer Status enjoy a 5-year partial exemption from the payment of income tax; applications received from companies located in the “Eastern Corridor” of Peninsular Labuan will enjoy a 100% tax exemption on their statutory income during their 5-year exemption period;

v)

Those who are granted the Investment Tax Allowance (ITA) get an allowance of 60% on qualifying capital expenditure (such as factory, plant, machinery or other equipment used for the approved project) incurred within five years from the date on which the first qualifying capital expenditure was incurred;

vi)

Income derived from outside Labuan and remitted to Labuan by resident companies (except those involved in the banking, insurance, air and sea transportation business), non-resident companies and non-resident individuals are exempted from tax;

Prior to investing in Labuan, Healy Consultants can arrange a tailored orientation programme in Labuan. Our orientation programmes typically include familiarisation tours of key points of business interest in the country, industrial parks, as well as government ministries and other useful services.

ii)

To set up a company in Labuan, the correct corporate structure is required to achieve successful investing in Labuan. Healy Consultants can advise on and engineer a structure to meet your exact needs.

iii)

Opening a corporate bank account is crucial to support the activities of entrepreneurs who wish to set up a company in Labuan. Healy Consultants can assist in opening a corporate bank account either in Labuan or in another jurisdiction, according to your needs.

iv)

One of the keys to successfully investing in Labuan is developing a reliable network of business contacts and service suppliers. Healy Consultants has, over the years, established an impressive Client base in Labuan and the region, across a wide range of industries. Subject to their mutual agreement, we are able to provide introductions to key businesspeople in Labuan to help entrepreneurs set up a company in Labuan.

v)

For entrepreneurs planning to move to Labuan to oversee their investments having set up a company in Labuan, Healy Consultants can help provide a comprehensive relocation service. Working with a leading relocation agent in Labuan, we can assist with all aspects of the move. Services include: obtaining employment and residence visas for the investor and his/her family; employment and residence visas for staff; introductions to real estate agents; introductions to banks for mortgages, personal bank accounts etc; and assistance with locating a suitable school for family.

vi)

Other support services provided by Healy Consultants to entrepreneurs investing in Labuan include accounting and taxation services, Virtual Office services, human resource support, marketing services, assistance with obtaining corporate finance, IT Support services and Asia real estate purchase.