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Advantages of Register a Company in Labuan

Update Date:2019-5-16 17:12:31 Source:Tannet (Malaysia) Sdn Bhd Views:1055

Malaysia Hotline: +603-2141 8908


Wilayah Persekutuan Labuan, referred to as Labuan. Labuan is an island affiliated with Malaysia. Labuan companies are registered under the Labuan Company Act of 1990. The registered companies in Labuan allow for business in Labuan or through Labuan Island, and enjoy favorable conditions for taxation.


The advantages of register a company in Labuan


1.   Registered companies in Labuan can develop multinational business and enhance corporate image

Today's enterprises often use multinational operations to enhance corporate strength and expand business areas. The establishment of an overseas offshore company is a shortcut for companies to go global, develop multinational businesses, and enhance their international image.


2.   Easy company management

The Labuan registered company does not need to hold a general meeting of shareholders and the board of directors every year. Even if it is held, its location can be arbitrarily selected. The company's management program is simple; you can go easy and put all your energy into the company's business management.


3.   Registration information and documents are highly confidential

In order to attract foreign companies to Labuan, the share capital of the registered company, the list of directors and even the company's business nature can be kept confidential, which makes the company's information highly confidential. The company's shareholder status, register of directors, ratio of shares, and income status are highly confidential and protected by law and are not accessible to the public.


4.   No business scope and area restrictions

In addition to individual restrictive industries, such as banking, insurance, military, etc., Labuan business scope is almost unlimited. In addition to the registered business area, the company can conduct business and operations in any country in the world.


5.   No restrictions for investors, shareholders, and directors

Labuan Company has no restrictions on the nationality and assets of shareholders and directors. Labuan Company can accept legal persons as directors of the company.



Labuan company tax


1.   Double Tax Agreement (DTA)

In general, overseas registered countries with zero tax rates, such as BVI or Cayman, have no way to sign double taxation agreement with any country, commonly known as the DTA (Double Taxing Agreement). Advantages like Labuan are rare in the world. Labuan's 3% net profit tax pays indirectly to maintain the flexible use of the tax treaty. Moreover, the holding company does not need to pay taxes in Labuan, which greatly enhances the attractiveness of Labuan. To further protect entrepreneurs, Labuan did not claim to be a Tax Haven but a Strategic Tax Planning Centre.


2.      Labuan Company can enjoy excellent tax benefits


a)      Labuan non-trading company: This type of business activity is tax exempt according to Labuan tax regulations;


b)      Labuan trading company: Engaging in commercial activities other than holding investment, such as: trade, consulting management, insurance trust, etc., need to pay 3% corporate profits tax, and must submit annual financial audit report.


c)      For companies that do business with Malaysian companies, a 25% corporate tax must be paid (not recommended);


d)     No stamp duty, value added tax, consumption tax, service tax, withholding tax;


e)      No foreign exchange control regulations, the funds can flow freely.



The Labuan International Business Finance Centre in Malaysia has a simple and attractive tax system. Its flexibility and low taxation have attracted a lot of foreign investment in Labuan. For investors who want to enter the Malaysian market, Labuan is definitely your best offshore company option.


Tannet offers the following services:


1.      Labuan Company Registered Secretarial Service - provides Labuan's operating address and registered address service; at the same time, it can provide answering calls, receiving faxes and mail services.


2.      Labuan Company Registration Follow-Up Service - annual report must be submitted to the government and the fee must be paid to confirm and update the registration information to ensure the company is legal. The company tax will generate 3% of the total profit to the Labuan Financial Services Authority, which must pay taxes every year.


3.      Bank Account Opening Service - Tannet can arrange for customers to open a bank account in Labuan.



If you want to invest in or register a company in Labuan, Tannet will be your first choice, because Tannet is familiar with Labuan company registration and can provide you with a practical solution. For further enquiries, please feel free to call the Tannet Service Hotline at 603-2141 8908 or email tannetmy@gmail.com, Malaysia Company Address: Unit 6.06, Level 6, Amoda 22 , Jalan Imbi, 55100 Kuala Lumpur.


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