Labuan, Malaysia Company Formation Frequently asked questions (FAQs)

1. What is Labuan company tax rate?

3% of Audited Net Profit for trading activities.

No tax for Non-Trading activities.

2. Does Malaysia have any double tax agreements in place
Yes, the country has signed double tax agreements with 65 countries.
3. What is the minimum capital requirement of Labuan entity?
From US$ 1 onward
4. Can a Malaysian incorporate a Labuan company?
Both Malaysian or Non Malaysian can be the director & beneficiary of a labuan company.
5. Is there any requirement to file account for Labuan company?

Only for licensed companies and companies electing to pay 3% tax.

Nevertheless, there is still a requirement to keep accounts that will sufficiently show the financial position of the company. With increased compliance, it is common that most companies will be required to prepare at least management accounts

Read more: Offshore company in Labuan

6. Is there any requirement to file an annual return?
Yes but it is simple.
7. Does Labuan Company require Company secretary?
Yes and if more than one is appointed at least one must be a resident secretary. Only an approved officer of a Labuan trust co or its wholly owned subsidiary may be appointed as a resident secretary.
8. Do I need to be physically present in Labuan to incorporate the Labuan Company?
Not necessary.
9. How long will it take to register a Labuan company?
2 - 3 working days upon receiving your full documentation.
10. Do I need to inform Labuan Financial Services Authority when I register a Labuan company?
No. One IBC will assist you in incorporating the Labuan Company from start to end.
11. What are the minimum director and shareholder requirements for a Labuan company?
One director who can either be an individual or a corporate entity and one shareholder who can either be an individual or a corporate entity.
12. Is it possible to open a bank account for Labuan Company in Labuan
Yes, One IBC can assist you.
13. Do Labuan Company need to file annual return?
Yes. Annual returns must be filed not later than 30 days prior to the anniversary of the date of incorporation.
14. Must financial statements of Labuan Company be audited?
Yes for Trading Company. Not required for Holding Company.

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