Labuan company formation is useful for investors seeking to do business in Malaysia and the surrounding region. Labuan is a federal territory of Malaysia, and a Labuan company formation can be used to benefit from the double tax treaty (DTA) network, which Malaysia has entered into with a number of countries. A Labuan incorporation is commonly used as an investment vehicle, particularly into China, Indonesia and Korea. Labuan company formation is also suited for cross border investment from Europe into Asia. The following information will help you determine whether Labuan company formation is the optimum solution to meet your business objectives. |
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Advantages of Labuan Company Formation |
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Labuan company formation is a legitimate tax-exempt structure located in a stable, secure jurisdiction.
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Labuan company formation allows 100% foreign ownership. Only one shareholder and one director is required, and corporate directors and shareholders are permitted. There is no public register of shareholders and directors following Labuan company formation. The director need not be Labuan-resident.
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There are no minimum capital requirements to complete Labuan company formation.
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Labuan company formation operates on seperate exchange controls to Malaysian. |
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A Labuan company accesses double taxation treaties with almost 50 countries. |
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According to the World Bank's Doing Business 2008 Survey, Malaysia is ranked positively at 24th in the world as an easy jurisdiction to do business. The survey measures factors including business start up procedures, time, cost and minimum capital required to start a business. |
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Healy Consultants can open a Labuan or international corporate bank account to support Labuan company formation. Healy Consultants works with internationally recognised banks such as HSBC, Standard Chartered and Citibank to provide corporate bank account services. |
Disadvantages of Labuan Company Formation |
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To qualify as legally tax-exempt, a Labuan company which is trading is required to pay a fixed sum of RM20,000 (US$5,720). Malaysia is poorly ranked for having the world's 51st-freest economy, and scores at 40% in terms of investment freedom and capital flows, according to the 2008 Index of Economic Freedom by The Heritage Foundation, a measure of freedom enjoyed in business, trade, monetary, financial, investment and labour markets. |
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Labuan company formation may be perceived as an offshore tax haven structure. Additionally, Malaysia is ranked poorly as the world's 43rd least corrupt country, according to the 2007 Corruption Perceptions Index by Transparency International, a global measure of corruption amongst public officials and politicians.
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Other Information
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Refer to the following links to read more information on Labuan company formation: |
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Contact Us |
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For more information on Labuan company formation, email email@healyconsultants.com or call us in Singapore at (+65) 6735 0120. |
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Buy the Labuan chapter of Healy Consultants' Asia Business Set Up book for US$100, to order call +65 6735 0120 or e-mail email@healyconsultants.com
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FEES SCHEDULE Year 1 incorporation US$4,900 * Annual fees from Year 2 US$2,900 * Nominee director and shareholder fee Company de-registration * Includes government licence fees, registered office for 12 months, Company secretary fees for 12 months |
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| © 2003 Healy Consultants Pte Ltd | ASIA COMPANY SET UP SERVICES |
