Understand the Jurisdictions Setup Requirement Before Proceed Your Company Registration in Labuan
A federal territory of Malaysia, it is very simple to register and run a business in Labuan. The place is a haven for those indulging in the trading business, and having a company in Labuan will have you a way to enter the ASEAN market. Also, the company registration in Labuan for foreigners is a piece of cake when they work with local registration services. Given that all the requirements are fulfilled, it won’t take 3E Accounting more than a week to register a company a Labuan.
Requirements for Company Registration in Labuan
One of the best things about Labuan company registration is undemanding requirements. Foreigners have a choice of registering an entity called a Labuan company (a company limited by shares), and in this case, the minimum paid-up capital is as low as 1 USD.
The good news doesn’t end there. You have a lot of freedom running a company in Labuan,. For example, unlike in many other countries, you don’t need a resident director. Of course, you need at least one director who can be living anywhere in the world, and the same goes for shareholders. 100% foreign ownership is allowed, but keep on mind you need to hire a resident certified secretary.
The government fee for company registration on Labuan can range from USD 300 to USD 1500, all of which depends on the size of authorized capital. Also, you need to propose a name for your business house. Here are some guidelines for choosing the name for your Labuan company.
- The name should define the business. It should not be vulgar.
- The name of the company should be clear. If the name has word or abbreviation in any other language, they should be translated into English.
- The Labuan FSA should accept the name. The registrar will review the name, and has the rights to deny it.
Taxes and Other Fees
The tax scheme in Labuan is very impressive. Trading companies in Labuan only need to pay 3% tax or US$6,000. It depends on the rules in the individual years of assessment. Whereas, investment holding companies are free from any taxes. Also, with proper guidance, you will receive every tax benefits as in Malaysia. Forget about GST, VAT or Capital Gains Tax. Also, the remittance sent back to other countries is not liable for any taxes.
Every company in Labuan need to pay a yearly government fee of RM 2600 (approximately US $730).
After proposing a name, the approval will take a maximum of 24 hours. The name then will be reserved for three months. (You first propose a business name before registering. Once reserved, new registrations cannot use the reservation you have).
Also, remember that the application fee for the name reservation is RM 50.
Get in Touch With Us
Company registration in Labuan won’t take a lot of your time and effort if you work with the right registration services of 3E Accounting. Contact us right away; we will help with your Labuan company registration at the minimal cost and time.