-Any person or his employee or a company rendering qualifying professional services to a Labuan entity in Labuan is exempted from income tax of up to 65% of the statutory income. Qualifying professional services includes legal, accounting, financial and secretarial services.
Foreign ownership of property is liberal (foreigners can even own 100% of the property) in Malaysia as long as minimum requirements are met. In law, foreigners can own any type of properties except for: Properties valued less than RM1 million. Low and medium cost residential units as defined by state authority.
Here are the 5 simple steps how to set up Malaysia Labuan Offshore Company:
- Business nature and Structure of the Company to align with tax and compliance.
- Decide your Company identity- please propose 3 names to check for availability and decide on suffix to be used: “Co.Ltd”, “Limited”, “Ltd”, “Labuan”, “LLC” or “Inc”
This is different from the usual Sendirian Berhad (Sdn Bhd) company entity that foreigners might be used to in Malaysia. An offshore company can refer to two things. It is either a: Company which has been incorporated at an offshore jurisdiction, or offshore financial centre.
A foreigner can register a corporation in Malaysia with 100% foreign ownership. This is called a Sdn Bhd. In order to have complete foreign ownership, the company must be in specific industries as dictated by the government.
What Are the Steps to Start a Business?
- Decide the business type.
- Name your business.
- Scout for a business premise.
- Registered office address.
- Prepare the incorporation documents.
- Incorporate your company.
- Pay registration fees.
- Issuance of a Certificate of Registration.
Yes Malaysian and NON Malaysian can incorporate Labuan Company. Please email us for enquiry.
It is important to note that foreigners are not allowed to start unlimited companies, sole proprietor companies, partnerships, enterprises, or LLPs in Malaysia. Foreigners are allowed to start businesses in the form of a private limited company or Sendirian Berhad (Sdn. Bhd.)
Despite what you may hear, offshore banking is completely legal. It's not about tax evasion or other illegal activities. It's simply about legally diversifying your political risk by putting your liquid savings in sound, well-capitalized institutions where they are treated best.
The term offshore refers to a location outside of one's national boundaries, whether or not that location is land- or water-based. The term may be used to describe foreign banks, corporations, investments, and deposits.
Offshore Banking is a powerful tool for keeping money secure and and in some cases making it exempt from taxation. Through the use of an offshore bank account a variety of opportunities that are not available through domestic banks become available including but not limited to unique investment vehicles.
Unlike domestic accounts, offshore bank accounts offer an option of which currency to hold the funds in. For example, holding funds in certain currencies may allow you to earn interest on your deposits, but it can also result in foreign tax liability.
At its broadest meaning, offshore jobs means any job which is not on the mainland of wherever you are staying. It could mean a job on an offshore oil rig or it could mean a job on some island belonging to another country.
By law, U.S. taxpayers are not permitted to use offshore accounts, such as foreign bank and securities accounts as well as trusts, to avoid paying tax. Failure to report the existence of offshore accounts or pay taxes on these accounts can lead to civil and criminal penalties.
Offshore investment. Offshore investment is the keeping of money in a jurisdiction other than one's country of residence. Offshore jurisdictions are a commonly accepted means of reducing the taxes levied in most countries to both large and small-scale investors alike.
The IMF has said that between $600 billion and $1.5 trillion of illicit money is laundered annually, equal to 2% to 5% of global economic output. Today, offshore is where most of the world's drug money is allegedly laundered, estimated at up to $500 billion a year, more than the total income of the world's poorest 20%.
Having an offshore company can also help you save money. Offshore companies typically pay lower taxes than those that are incorporated within their home countries. Paying lower taxes means that you can reinvest the company's earnings or keep a larger profit without handing a lot of money over the government.
Even though it is only a few hours by boat from the main tourist hub in Borneo, Kota Kinabalu, the island of Labuan hasn't yet become a very popular destination for Western travellers. However, if you have the time Labuan is definitely worth including in your itinerary.
Here is a list of top Labuan attractions, what to see and things to do.
- Former Coal Mine Tunnels.
- Peace Park.
- Surrender Point Memorial.
- Labuan Square.
- Labuan Museum.
- Financial Park Complex.
- An'Nur Jamek State Mosque.
- Deep Sea Fishing.
Hence, the top five items to buy at Labuan Central Market (across both floors), in random order, are:
- Beras Bario (rice)
- Ikan Tahai (sun-dried fish)
- Sayur Paha-paha (vegetables)
- Local batik (textile)
- Pearls (accessories)
Labuan became the main objective for the Allied forces to repossess. In 1984, the Government of Sabah ceded Labuan to the federal government which later been accessed to a federal territory. It was declared an international offshore financial centre and free trade zone in 1990.
