Benefits of Offshore Company Registration in Labuan, Malaysia
For benefits like reduced tax liability, image credibility, and so on, Malaysia is fast becoming a place of interest by many investors to incorporate an offshore company. Labuan in Malaysia has gained its reputation as one of the few off-shore financial centers in Asia that attract many multi-national companies and investors across the world by using Malaysia as their international business heaven or doorway.
Like many other low tax jurisdictions, Labuan imposes no-tax or low-tax policy for the majority of companies with foreign or offshore sourced income. If your requirements are tax-free trading, asset protection, privacy, and more, then what you’re looking for is an offshore company, for which Malaysia Labuan state offshore companies are best.
Offshore company benefits in Malaysia
- 100% foreign ownership for foreigners.
- Labuan is an independent state with its own laws.
- But, Labuan is still protected by Malaysia’s sovereignty.
- Has no tax policies for any foreign company which draws investment into the region.
- Corporate tax rates as low as 3%.
- Faster setup process.
- Can trade with a Malaysian company or resident at a low tax rate of 25%.
- A properly structured company is legitimately tax-exempt from several areas of business. These include insurance, investment holding, trust management, fund management and offshore banking.
- Investors and their families are eligible for a 2-year business visa. This can be extended to include parents as well.
- The flexibility of either trading in Ringgit Malaysia or foreign currency bank accounts.
- Can get MM2H easily in the state of Sarwak, Malaysia.
Offshore company problems in Malaysia
- Little costly registration process in USD.
- Can not do business out of Labuan state or in peninsular Malaysia.
- Directors can not live or get business visa in peninsular Malaysia.
Offshore taxation laws came into effect on 1 January 2019:
- amendments to the Labuan Business Activity Tax Act 1990 (LBATA Amendments);
- introduction of the new Labuan Business Activity Tax (Requirements for Labuan Business Activity) Regulations 2018 (Economic Substance Regulations); and
- introduction of the new Income Tax (Deductions Not Allowed for Payment Made to Labuan Company by Resident) Rules 2018 (Disallowed Deductions Rules).
