Requirements and conditions to set up a Labuan Company.

Type of company

Called Labuan Company which in most cases must be companies limited by shares.

Time to incorporate

In most cases including reservation of name, a Labuan Company can be incorporated within 1-2 days. A name, once reserved, is valid for three months. Please allow 1-2 weeks for corporate kits to be sent.

Government’s Registration fee

From the minimum of US$300.00 to the maximum of US$1500.00 depending on the size of authorised capital chosen. Most company pays the minimum authorized capital fee.

Shelf company availability

Yes, generally available.

Taxation

Trading companies pay 3% tax

Minimum annual government fee

RM2600.00 (approximately US$650.00) regardless of capital structure, payable every year, the latest, one month before the anniversary of the company.

Disclosure of beneficial owner

Labuan adopts an anti-money laundering/counter terrorism financing legislation under which all licensed service providers are required to know the identity of their customers before accepting a transaction. Not to do so would be an offence under the legislation. Therefore, disclosure of beneficial ownership will be made to trust company, bank, insurers, etc. but not to the Authority.

Bearer shares

Not permitted. All shares must be in registered form.

Standard minimum paid up

None but our standard company comes with a standard paid up of U$1.00.

Standard authorised capital

None. Labuan now adopts no par value regime.

Permitted currency of capital

Any currency except Malaysian Ringgit, although in most cases, the US$ is prevalent.

Minimum number of shareholders

One and there is no residency or nationality requirement.

Minimum number of directors

One and there is no residency or nationality requirement.

Corporate directors

Yes.

Local directors

Optional.

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 company or its wholly owned subsidiary may be appointed as a resident secretary.

Public record of directors & shareholders

No.

Location of directors and shareholders meeting

Anywhere.

Telephone board meeting

Yes.

Access to Double Tax Treaty

With careful planning, Labuan offshore companies may enjoy the benefits of Malaysia’s extensive Double Tax Treaties.

Requirement to file account

Yes, and it is simple

Requirement to file annual return

Yes, and it is simple.

Local registered office address

A Labuan offshore company must have, at all times, a registered office in Labuan. Such an office being the principal office of a trust company.