LABUAN COMPANIES GENERAL INFORMATION
SHORT FORMS :
2. Types of offshore companies:
LC and FLC.
The LC can be in the form of:
3. Companies with no shares issued:
4. Are bearer shares allowed:
5. Capital requirements:
Minimum one share for non-licensed entities. For licensed entities, the
issued capital requirement depends on type of licence.
6. Government fees: Stamp duty is not applicable while
registration fee is based on authorised capital, payable to
7. Annual fees paid to authorities:
8. Applicable taxation rates:
Labuan trading companies may opt to pay 3% on net audited profits or a fixed sum of RM20,000. Labuan non-trading companies pay no tax. Companies carrying on both trading and non-trading activities are deemed to be carrying on trading activities taxed accordingly. From Year of Assessment 2008, Labuan companies may elect to be taxed under the Malaysian Income Tax Act 1967 to secure more certainty to Malaysia's treaty benefits. Such election shall be irrevocable.
9. What are the requirements for the use of local representatives/professionals?
The services of a Labuan trust company are required to incorporate the Labuan entity and for statutory filings of the Labuan company. An officer, who is an approved officer of a Labuan trust company or a subsidiary company wholly owned by the Labuan trust company, must be appointed as the Resident Secretary of the Labuan company.
10. Are shelf companies readily available?
No, this is almost made redundant by the fact that Labuan companies can be incorporated within one to three working days.
11. Minimum number of members:
One member who can either be an individual or a corporate entity.
12. Registered office:
Must be the principal office of a Labuan trust company.
13. Directors and secretary:
Minimum one director who can either be an individual or a corporate entity. One resident secretary (see no. 9) must be appointed. Additional secretaries may be appointed.
14. Are Corporate Directors and Corporate Secretaries permitted:
There is no requirement as to the location of meetings. The LCA permits members’ resolutions to be passed by circulation or other electronic means.
16. Annual return:
Annual returns must be filed not later than 30 days prior to the anniversary of the date of incorporation.
17. Must financial statements of a company be audited?
Required for licensed entities, those making public offerings and entities opting to pay 3% tax (see no. 8).
18. Is disclosure of profits required by filing balance sheets with annual returns?
Accounts not required to be filed with annual returns . However, if the members of a Labuan company adopt audited accounts then it is necessary to file the same with LFSA (see no. 17)
19. Are there any exchange control or other financial restraints imposed upon an offshore company?
20. Labuan companies incorporated or registered in the year 2013:
21. Total number of Labuan companies formed or registered as at 31 December 2013:
22. How, if any, is migration into and out of the jurisdiction achieved?
23. Does Labuan have access to any tax treaties?
24. What are the fees for incorporation of Labuan companies and other trust company services?
Incorporation: USD700 - USD1,200
Annual Management Fee: USD500 - USD1,500
Nominee Shareholder: USD200 - USD500
Opening of bank accounts: USD500 - USD2,000
Other services depending on time and skills involved
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