Main Reasons to Choose Labuan for Starting a Company
Updated on Friday 09th February 2018
Rate this article 1 reviewsbased on
Labuan represents a growing finacial center of Malaysia, seen as a top destination for offshore companies. The procedure for opening a company in Malaysia in the region of Labuan is simpler than in the case of businesses registered elsewhere in the country. The registration can be completed in a period of seven working days, in the situation in which the investors have provided the required incorporation documents.
One of the main advantages of setting up a company in the region of Labuan is that the local legislation does not require appointing a resident director, as there are no restrictions regarding his or her nationality, a rule which is also available for the company’s shareholders. Our team of consultants in company registration in Malaysia can advise on why Labuan should become a business destination for foreign investors.
The advantages of Labuan international company
One of the ways of starting a business in this region is by setting up a Labuan international company. This type of legal entity does not have any restrictions on the nationality of its founders. It can be set up with 100% foreign ownership. Furthermore, the capital requirements for this business form are low, as the company may be set up with a minimum share capital of only $1.
Also, this structure can be incorporated by a single shareholder, who may also act as a director. Our team of agents can offer more details on the commercial legislation applicable in Labuan.
The procedure for company registration in Malaysia in the region of Labuan exempts such businesses from obtaining licenses and permits in the case of the following activities:
• consultancy companies.
Tax exemptions in Labuan, Malaysia
Labuan is a tax-friendly region, in which companies can benefit from numerous tax exemptions. For example, a legal entity is not required to pay the goods and servics tax (GST) for sales transactions and it also qualifies for an exemption on the withholding tax of dividends and interest.
It is also important to know that the Labuan company can have a corporate bank account opened in other regions of Malaysia.
There are other benefits, including those referring to the visas the investors (and their families) have to obtain when relocating here for business purposes. Investors interested in further advice on the advantages of the Labuan business center can contact our team of specialists in company formation in Malaysia for complete consultancy services.