Labuan IBFC Asia Pacific’s Leading Midshore
· Strategically located in Malaysia, sharing common time zone with major Asian cities, complementing financial centers of Hong Kong, Singapore & Shanghai
· A leading business and financial center in Asia Pacific with growing reputation and track record
· Striking an ideal balance between client confidentiality and compliance with international best standards
· Robust and well-balanced legal and regulatory framework
· A tax-efficient jurisdiction to facilitate businesses
· Access to Malaysia’s double taxation treaty network with more than 70 countries
· A complete range of solutions for business and investment structures for cross border transactions, business dealings and wealth management needs
Commonly Used Legal Structure
Foundation
Labuan Company
Trust
Partnership
When to use Labuan Entity?
· Investment holding
· Trading activity
· Mutual fund (Private or Public fund)
· Family office
· Asset protection
· Wealth management
· Estate planning
· Charitable purposes
· Asset ownership
· Licensed activities:
o Financial
o Banking
o Insurance & insurance related
o Security licence
o Capital market
o Leasing
Tax Framework
· Govern by Labuan Business Activity Tax Act 1990 (“LBATA”)
· Trading activity – 3% tax
· Non-trading activity – no tax
· No withholding tax, stamp duty, capital gain tax
· Huge Double Taxation Agreement network
Tax Exemption
100% exemption on directors’ fees
100% exemption on dividend
50% exemption on gross income (managerial capacity) for non-Malaysian
50% exemption on gross housing and Labuan Territory allowances
65% exemption on statutory income from Qualifying Professional Service Provider
No Withholding Tax
No Capital Gain Tax
No Inheritance Tax
No Indirect Tax
No Import Duty / Sales Tax
No Stamp duty
Labuan Company
All Labuan companies are governed by the Labuan Companies Act 1990 (“LCA”) and companies incorporated in Labuan may carry out either trading or non-trading activity in, from or through Labuan.
Types of Labuan Company
Limited by share
Limited by guarantee
Key Corporate Features of Labuan Companies
Share Capital
· Permitted currencies - Ringgit Malaysia
· Minimum issued capital
· No par or nominal value
· Authorised capital – not applicable
Directors / Shareholder / Secretary
· Minimum one (1) director
· Minimum one (1) shareholder
· Local director requirements is not mandatory
· Can be individual / corporate shareholder
· Resident Secretary is required
Office
· Registered address – address of the principal office of a trust company in Labuan
· Marketing office – optional in Kuala Lumpur or Johor Bharu
· Co-location – permissible for Holding Company (Kuala Lumpur or Johor Bharu)
Company Structure
· Amalgamation by merging two or more companies into one is permissible
· Re-domiciliation is allowable
· Management or shareholding structure is not publicly accessible
Annual Requirements
· Annual Return and Annual General Meeting (AGM)
· Annual government fee
· Annual tax return
· Accounts to be kept in Labuan
· Audit required for trading activities
