Labuan
NEWS
FACT FILE
Location Located at latitude 05 degree North and longitude 115 degree East and is about 8km off the west coast of Sabah, Malaysia
Time Zone Greenwich Mean Time +8.
Population About 100,000 (est 2012)
Capital Bandar Labuan.
Airport Labuan Airport.
Language Mainly Malay, English.
Currency Ringgit Malaysia (RM).
Dialing Code +6 087.
Centre's Expertise Banking, Islamic Finance, insurance and captive insurance, fund management, leasing, capital market, investment holding, private wealth management, trading and shipping.
Political System Labuan is a federal territory of Malaysia, which is based on parliamentary democracy.
Legal System The Malaysian legal system is based on English Common Law.
Personal Income Tax Tax residents of Malaysia : 0% – 26%; non-tax resident : 26%. 50% tax exemption for non-residents in managerial capacity with Labuan Companies. Directors' fees received by foreign directors from a Labuan company are exempted from tax.
Corporate Income Tax Labuan companies carrying on Labuan trading activities are taxed at 3% on audited net profits or upon election, a flat rate of RM20,000. No tax is imposed on Labuan non-trading activities.
Exchange Restrictions No exchange control on foreign currency transactions
Tax Treaties Labuan companies with Malaysian tax residency can access a large majority of Malaysian tax treaties with other countries.
Permitted Currencies In any foreign currency except RM.
Minimum Authorised Capital One share of any denomination in foreign currency.
Minimum Share Issues One share of any denomination in foreign currency.
Shelf Companies Available from early 2011.
Incorporation Time Scale One to two days for manual applications
Incorporation Fees RM1200 to RM5,200 depending on authorised capital
Annual Fees Government : RM1500 for Labuan companies; RM5,300 for Foreign Labuan companies
Minimum Number One (either individual or corporate entity).
Residency Requirements Resident director is optional.
Corporate Directors Allowed.
Meetings/Frequency Directors meeting required annually
Disclosure There are secrecy provision in the legislation governing Labuan companies
Bearer Shares Not allowed.
Minimum Number One – can be individual or corporate entity.
Public Share Registry No, records of Labuan companies are not public records
Meetings Frequency Yes, at the discretion of the companies
Annual Return Filed annually not later than 30 days from the date of the incorporation of the Labuan company.
Audit Requirements Optional, except for Labuan companies opting to pay 3% tax p.a. on audited net profits and licensed companies such as banks, insurance entities and trust companies.
Registered Office The principal office of a Labuan trust company is deemed as the registered office of a Labuan offshore company.
Domicile Issues Change in domicile is permitted
Company Naming Restrictions The name may contain any word or abbreviation thereof in the national language of any country that denotes a company limited by shares or guarantee.Approval is required from the Authority and may be reserved for a period of up to three months.
ARTICLES
Labuan IBFC – Building Opportunity in Asia Pacific
  Labuan, a federal territory of Malaysia off the coast of Borneo, has been host to a growing financial services sector for over 25 years. (01/01/2017)
Labuan Protected Cell Companies: An Effective Risk Management Solution
  Sazali Suzin, provides an overview of the benefits of using Labuan Protected Cell Companies as a method of risk managment. (01/12/2012)
The Foundation of your Wealth: A Wealth Management Structure Available to All
  Hiu Chee Fatt, Labuan IBFC examines how the flexible nature of Labuan Foundations can provide a wealth of options for clients looking an attractive wealth management structure. (01/08/2012)
The New Amendments to the Labuan Companies Act, 1990
  Siti Nafsiah A. Shaffie highlights the importance of the recent amendments to the Labuan Companies Act for Labuan as an up and coming IFC. (01/08/2012)
The Role of Asian International Finance Centres
  Jay Krause and Philip Munro, Withers, examine how Asian IFCs are beginning to justifiably rival their western counterparts, assessing what specifically gives the East the current edge over the West. (01/06/2012)
The Malaysia International Ship Registry and Shipping Business Through Labuan
  Siti Nafsiah Ahmad Shaffie, Labuan Borneo Trustees, examines Labuan's potential to be a world leader in international ship registration and highlights the tax benefits of doing business in Labuan. (01/06/2012)
The Labuan Trading Company – Best of Class in Asia
  Mike Grover highlights the attractiveness of Labuan's tax benefits for businesses. (01/01/2012)
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