Labuan is off the west coast of North Borneo, 8km from Sabah, Malaysia. The official language is Bahasa Malaysia. However, English, and Chinese are widely spoken.
Labuan is a duty free island in Malaysia, all goods sold in Labuan are free of Malaysian customs. In 1990, Labuan was designated as Malaysia’s int’l financial centre. Labuan is home of over 60 int’l banks including Bank of America, Barclays, Citibank, ING Bank…etc.
There are 2 types of business activities undertaking by a Labuan Entity:
| 1. |
Holding Co. (Non-Trading) – investment overseas or holding securities, stock, shares and real estate...etc. are solid investments. |
| 2. |
Trading Co. – business activities are including trading, commission and royalty collection. |
Key Features
Labuan company is incorpor ated under Labuan Companies Act 1990. Key features of a Labuan company are as below:
| 1. |
With Malaysia tax resident status, can obtain a Tax ID No.(TIN). |
| 2. |
English is the main language in CI with Ltd, Corp, Inc, Gmbh…etc. |
| 3. |
Minimum 1 director/shareholder, can be individual or corporation. At least I director must be lindividual. |
| 4. |
Annual General Meeting is required. |
| 5. |
Corporate income tax rate is 24%. |
| 6. |
Annual tax filing in a prescribed form is required. |
| 7. |
No. GST, withholding tax, stamp duty, gift tax…etc. |
| 8. |
Can set up a physical office in Labuan. |
| 9. |
Registered address, agent and company secretary is required.
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