OFFSHORE COMPANY IN LABUAN
Definition:
An enterprise which only carries out
economic activities outside the country it is registered.
For
example, Mr. Zaki, a Malaysian wants to incorporate an offshore company at
Melbourne, Australia.
Names of company:
1. Must not resembling the existing company’s name
2. Reflects royalty or government patronage
3. Reservation of name fee is RM50
4. Approval is within 24 hours and the reservation for a period of 3
months
Restrictions to carry on business:
1. Malaysians cannot carry on business unless permitted by the OBA 1990
2. Carry on business of banking or insurance unless it is licensed
under OBA 1990
3. Carry on business with Malaysian currency except for defraying its
administrative and statutory expenses
Registration/incorporation of company:
- Take period of 4-8 days
Process of incorporation:
1. The applicant must be aware of the legislative framework of Labuan
IBFC and the power and duties of a Labuan company and its member under Labuan
Companies Act 1990
2. Applicants must appoint a licensed Labuan trust company , which
should conduct its own due diligence on
the prospective client.
3. Reservation of a company name
4. Application must be accompanied with the documents required.
Documents required for incorporation:
1. Memorandum and Articles of Associations
2. Consent form to act as a director
3. Statutory Declaration of Compliance with the Companies Act
4. Certificate of identity
5. Statutory declaration by persons before appointments as director
6. Requisite fee
Fees
|
Amount
|
|
RM
|
USD
|
|
Registration fees
|
||
Paid up capital
|
||
RM50000 and below
|
1000
|
300
|
Exceeds Rm50000 but less than rm1
million
|
2000
|
600
|
RM1 million and above
|
5000
|
1500
|
Registration of foreign company
|
6000
|
2000
|
Annual fees
|
||
Labuan company
|
2600
|
800
|
Foreign Labuan company
|
5300
|
1500
|
Advantages:
1.
Can be 100% foreign owned
without local Malaysia partner
2.
Paid up capital of the company
( min USD 1) is low and straight forward to eligible for all necessary approval
3.
Can act as investment holding
company for property, assets andwealth.
4.
For your international trading
business
5.
Simple structure ( need only
one director, one shareholder)
6.
Incorporation is fast ( 14
days)
7.
No trade license needed for
trading, e commerce, import, export and consultancy business
8.
No GST
9.
No withholding tax for I
interest, dividend, management, technical, royalty, lease rental
10.
Yearly taxation on profit only
3 % or maximum RM20000 based upon your election
11.
No tax on investment holding
company structure
Benefits:
1. Lower tax or tax exemption
2. Fewer or no auditing and accounting requirements
3. Confidentiality
4. Limited liabilities
5. Less regulations and paperwork
6. Anonymity
7. Low operating cost and fees