Labuan offshore company

Labuan offshore companies

Register new offshore business in LabuanSince 2003, Healy Consultants assists our Clients to incorporate offshore businesses in Labuan, Malaysia. Most of our Clients are interested by the formation of Labuan offshore companies to be used as trading or holding companies. In this case, registration procedures are completed with the Malaysia International Business and Finance Center (Malaysia IBFC).

What is a Labuan offshore company?

  • An offshore company is a non-resident company in Malaysia. Such business entity is usually used as a trading company to conduct business from Labuan with non-residents or as an holding company;
  • Offshore companies in Labuan are allowed to: i) conduct business with Malaysia nonresidents ii) carry on shipping operations to anywhere but Malaysia iii) transact in all currencies but MYR (the local currency is still allowed for settling administrative and statutory expenses) and iv) offer product and services in non-regulated industries.

What are the advantages of establishing an offshore company?

  • Setup of an offshore company is easy and only require i) US$1 of share capital ii) one shareholder and iii) one director, who both can be foreigners and are not required to be ordinarily residents in Labuan or other parts of Malaysia;
  • Labuan offshore companies are subject to reduced corporate tax, either in the form of a flat tax or a reduced rate of 3% over their global earnings. They will furthermore not be subject to audit requirements if they choose to pay the flat tax;
  • Labuan offshore companies can open representative offices in Kuala Lumpur and Johor Bahru (the closest Malaysian city to Singapore). This way, entrepreneurs setting up a Labuan company can do business in Malaysia using a Labuan company.

What an offshore company cannot do?

  • For business planning to trade in Malaysia or to offer banking, insurance and financial services from Labuan, it is however not possible to form an offshore company in Labuan. These companies must be incorporated with the Companies Commission of Malaysia and eventually licensed with the Malaysia Securities Commission or the Central Bank;
  • Clients can however setup regular Malaysian LLCs, PLCs, branch offices and representative offices in Labuan as well as other parts of Malaysia. Please visit our Malaysia business setup page for further details.
 On shore LLCOffshore LLC
How long to set the company up?4 weeks2 weeks
How long to open company bank account?4 weeks4 weeks
Legal Liability?LimitedLimited
Wholly Foreign owned?YesYes
Minimum paid-up share capital?US$1US$1
File annual tax return?YesYes
Corporate Bank Account?SCBHSBC
Does our Client need to travel?NoNo
Resident director required?YesNo
Resident shareholder required?NoNo
Minimum directors allowed?21
Minimum shareholders?21
Malaysian resident company secretary required?YesYes
Corporate shareholders allowed?YesYes
Corporate director(s) allowed?NoYes
Public register of shareholders and directors?YesNo
Corporate Tax Rate?25%3% or US$6,000
Statutory audit required?YesOnly if paying tax at 3%
Allowed to invoice Malaysian Clients?YesNo
Allowed to sign sales contracts with Malaysian Clients?YesNo
Allowed to import and export goods?YesNo
Can rent an office in Labuan?YesYes
Can buy Labuan property?YesYes
Can own equity in other Labuan companies?YesYes
Total business setup costs in Yr. 1US$10,580US$8,350
Subsequent annual costs (incl. accounting and tax fee)US$4,915US$5,370
Sample Engagement fee InvoiceLabuan LLC setup cost

Contact us

For additional information on our offshore company services in Labuan, please email us at email@healyconsultants.com. Alternatively please contact our in-house country expert, Mr. Kunal Fabiani, directly:
client relationship officer - Kunal
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