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Labuan

Legal form:

LLC, LLP, PLC, BHD

Delivery:

3 months

Price: $

$3,000

Payment methods:

payment methods.webp

Requirements:

Document checklist:

Local legal address (Handled by B2B Hub) 

1.Passport
2.Proof of Residence 

Registrar

Organization name

Labuan Financial Services Authority

Abbreviation

Country

Labuan

Phone

+603-8873 2000

Listing
UK comapny formation (1).webp

About

Labuan

Capital
Official languages
Population 
Currency

ISO 4217

Labuan, Malaysia

Malay and English

100,890

Labuan Dollar

LAB

FAQ

Q: What is Labuan?

Labuan is a federal territory in Malaysia located off the coast of the island of Borneo. It has a special status as an offshore financial center and free trade zone, making it an attractive location for business and investment.


Q: What types of companies can be formed in Labuan?

There are several types of companies that can be formed in Labuan, including:

- Labuan company limited by shares (LCL)

- Labuan company limited by guarantee (LGC)

- Labuan protected cell company (LPCC)

- Labuan foundation


Q: What is a Labuan company limited by shares (LCL)?

A Labuan company limited by shares (LCL) is a type of company that can be incorporated in Labuan with limited liability for its shareholders. It is commonly used for trading, investment holding, and other commercial activities.


Q: What is a Labuan company limited by guarantee (LGC)?

A Labuan company limited by guarantee (LGC) is a type of company that can be incorporated in Labuan with limited liability for its members. It is commonly used for non-profit and charitable activities.


Q: What is a Labuan protected cell company (LPCC)?

A Labuan protected cell company (LPCC) is a type of company that can be incorporated in Labuan with the ability to segregate its assets and liabilities into separate cells. This allows for greater flexibility and risk management for businesses that require multiple entities within a single corporate structure.


Q: What is a Labuan foundation?

A Labuan foundation is a legal entity that is set up for purposes such as estate planning, wealth management, or charitable activities. It is managed by a council or a foundation director, and can be used to hold assets or make distributions to beneficiaries.


Q: What are the requirements for incorporating a Labuan company?

To incorporate a Labuan company, the following requirements must be met:

- Minimum one shareholder and one director (who can be the same person)

- Minimum share capital of USD 1

- Registered office and resident secretary in Labuan

- Business plan and proof of financial standing

- Compliance with anti-money laundering regulations


Q: How long does it take to incorporate a Labuan company?

The incorporation process for a Labuan company typically takes 3-5 business days once all required documentation has been submitted.


Q: What are the tax implications of setting up a Labuan company?

Labuan companies are subject to a low tax rate of 3% on net profits or a flat rate of MYR 20,000 (approximately USD 4,800) per year, whichever is lower. However, Labuan companies are not allowed to do business with Malaysian residents or engage in ringgit-denominated transactions, and certain types of income are subject to higher tax rates. It is recommended to seek professional advice on the tax implications of setting up a Labuan company.

Economy

"Labuan is an island off the coast of Malaysia that has become a major hub for international business and finance. The economy of Labuan is largely driven by its offshore financial services sector, which accounts for over 70% of its GDP. The island also has a thriving tourism industry, with over 1.5 million visitors in 2019.

The economy of Labuan has grown steadily over the past decade, with GDP increasing from RM3.3 billion in 2010 to RM4.3 billion in 2019. This growth has been driven by the offshore financial services sector, which has seen a compound annual growth rate of 8.2% over the same period. The sector has attracted a number of international banks and financial institutions, including HSBC, Standard Chartered, and Citibank.

The tourism sector has also been a major contributor to the economy of Labuan, with over 1.5 million visitors in 2019. This has resulted in an increase in hotel occupancy rates, which have risen from an average of 60% in 2010 to over 80% in 2019. The island also has a number of attractions, including beaches, historical sites, and a vibrant nightlife.

Overall, Labuan has seen a steady growth in its economy over the past decade, driven by its offshore financial services sector and its thriving tourism industry. The island has become a major hub for international business and finance, and is well-positioned to continue to grow in the future."

Taxation

Labuan is a federal territory of Malaysia that has its own tax system. Here is an overview of the taxation system in Labuan:


Corporate Taxation:

- Labuan is known for its favorable tax system for offshore companies. Companies that are incorporated in Labuan but do not carry out any business activity in Malaysia are subject to a low tax rate of 3% on their net profits.

- Companies that do carry out business activity in Malaysia are subject to Malaysia's standard corporate income tax rate of 24%.

- Labuan companies are required to file their tax returns by the end of March each year, and tax payments are due in two installments: the first installment is due by the end of June, and the second installment is due by the end of December.


Personal Taxation:

- Labuan does not impose personal income tax on individuals.


Tax Payment Process:

- Labuan companies can make their tax payments online through the Labuan Financial Services Authority's website or at the tax authority's office.

- Companies are required to file a tax return and make their tax payments by the deadlines mentioned above.

- The tax authority may also conduct audits to ensure compliance with the tax laws.


In summary, Labuan has a favorable tax system for offshore companies, with a low tax rate of 3% on net profits. Labuan does not impose personal income tax on individuals. Companies are required to file their tax returns by the end of March each year and make their tax payments in two installments. Tax payments can be made online or at the tax authority's office, and companies may be subject to audits to ensure compliance with the tax laws.

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