Remotely Register a Company in Labuan (Malaysia)

If you want to set up a trust, foundation, LLC, or foreign brokerage, you don’t have to go to offshore jurisdictions. Sometimes, that can make things more complicated, especially when you need to open accounts or report your activities.

Take a look at Labuan, Malaysia. It is a safe and attractive destination for foreign entrepreneurs who want to start a business. The Asian jurisdiction is known for its security and reliability, making it a top choice for international companies with foreign ownership.

The federal territory of Labuan is on the OECD white list, which means it allows nominee services but not bearer shares. The privacy of shareholders, directors, and company founders is extremely important here – no one can access any related information without their permission.

You are welcome to register a company in Labuan, where you will enjoy a low corporate tax rate of 3%, no VAT or capital gains tax, and the benefit of Double Taxation Avoidance Agreements (DTAs). Plus, you have a wonderful opportunity to register your business remotely, without having to visit Labuan in person.

Company registration in Labuan: special aspects and benefits

A federal territory of Malaysia that serves as a dynamic banking center and a free trade zone, Labuan is offering attractive conditions for investors and foreign entrepreneurs. It is of special interest for companies that want to do business with Malaysia, Brunei, the Philippines, and other key Asian regions.

It is since 1990 that the international offshore center has been operating in Malaysia. However, by 2010, it was no longer an offshore center officially due to global efforts to combat tax havens.

According to extensive research, Labuan is becoming increasingly popular judging by the number of subsidiaries opened there, surpassing Panama and the Isle of Man, and aiming to shortly compete with Guernsey and the Bahamas.

Labuan attracts prominent corporations for its economic stability, favorable tax regime, strong privacy standards, and flexible business operations that suit foreign investors’ goals.

Business taxes in Labuan and other jurisdiction’s advantages

Here are the tax incentives that businesses enjoy in Labuan:

• low corporate tax rate of 3%
• no tax on investment activities, except for intellectual property
• no sales tax or VAT
• no capital gains tax 
• no withholding tax on royalty payments, interest, technical services, or management services
• 50% tax deduction on salaries paid to non-Malaysian directors.

Moreover, Labuan operates with no currency controls, making profit repatriation and foreign currency transactions exceptionally straightforward.

A company that fails to show its economic presence in Labuan will face a 24% profit tax rate. Substance requirements include having a physical office, hiring local staff (usually 1 to 2 individuals), and proving the company’s minimum annual operational expenses. Mind that the latter will differ based on your business type.

Below, you will find some other attractive advantages of the jurisdiction for foreign investors:

• Strong personal data protection when company information is only revealed to third parties with the director’s or owner’s written consent.
• No penalties for late tax payments.
• Lower business operating costs, including office rent and labor, compared to other major Asian cities.
• Strategic geographical location of the jurisdiction.

Although Bahasa is the country’s official language, English is widely used in business. This enables smooth networking and builds solid relationships with business partners.

Quick and secure company registration in Labuan: follow these steps

You are welcome to register a company in Labuan online assisted by Q Wealth experts and partners. For the above purpose, you don’t have to be physically present in the jurisdiction. To start your business smoothly, follow these regulations:

• You shall have at least 1 company owner, either an individual or a legal entity.
• Your business needs at least 1 director and 1 shareholder. The Labuan business founder (an individual or a legal entity) can be both its director and the only shareholder.
• You need at least USD 1 as authorized capital for an unlicensed company, in any currency except the local one. A licensed business may need more authorized capital.
• Labuan companies must keep proper accounting records. They shall also submit yearly financial reports and get audited.

With our partners’ assistance, it will take you anywhere from 7 to 15 workdays to incorporate a Labuan company after all documents are ready.

Necessary documents for company registration in Labuan

These are the documents you need to provide to Q Wealth experts to set up a brokerage or international company in Labuan, Malaysia:

• For individuals: Passport copies for all founders, directors (if your director is a foreign national), and shareholders. They can be individuals or entities.
• For entities: Corporate documents and a resolution on company incorporation in Labuan.
• Residence addresses for the managers and beneficiaries, with the corresponding proofs.
• Payment of fees and charges (with receipts).

Labuan regulators may also ask for beneficiary information, as well as FATCA and KYC forms.

After your business has been established as an LLC, trust, offshore company, or partnership (depending on what works best in your situation), you can open a bank account with a Malaysian bank or an international financial institution. Q Wealth specialists will help you choose an account and apply to multiple financial institutions worldwide in a single go (PRE-APPROVAL).

Costs and expenses associated with company registration and maintenance in Labuan

You will pay 4900 EUR to register a company in Labuan assisted by Q Wealth experts and partners in Malaysia. Look what the above fee includes:

• company registration per se
• secretary services for 1 year
• registered address for your company in Labuan
• government fees
• registration and data entry for companies with an authorized capital up to USD 10,000 (for higher amounts, special rates and separate quotes apply).

An extra charge of EUR 150 and above applies for courier document delivery.

Ultimately, you will pay at least EUR 5,050 for the basic company incorporation package, excluding bank account opening and other services like accounting and auditing.

Additional business services in Labuan

Service	USD / $
Seal	350
Share certificates	450
Filing a tax return (declaration) on self-assessment
Filing a tax return to the Tax Administration	250
Preparing a bank account to pay taxes to the Tax Administration	250
Applying for an extension to the Tax Administration	250
Accounting
Preparation of financial and accounting reports for a company registered in Labuan. The cost is calculated based on the number of transactions and the work complexity, min.
100 or more transactions	1500
Legalization and notarization services
Application for a letter of information or a certificate of good standing for your company	700
Document notarization	400
Document legalization, depending on the number of pages	250
Secretarial services
Maintaining your company’s name	150
Preparing a resolution	150
Changing your company’s name	400
Appointment or resignation of a company director	400
Auditor appointment or change	400
Increase of paid-in capital and share distribution	700
Share transfer	500
Amendments in memorandum and articles of association	500
Payment of dividends	500
Fees registration	300
Dismissal registration	300
Changing or updating the information about the company director	300
Corporate banking services in Labuan
Opening a bank account in Labuan	3000
Person authorized to sign a bank account	200
Change of signatories	550
Opening an account with a foreign bank	from 3999
Other professional services
Application for obtaining a Certificate of Tax Residence in Malaysia	1250
Company search (depending on the incorporation year)	600
Transfer of a company from Labuan to another jurisdiction	3000
Striking off a Labuan company from the register	2000
Company liquidation (liquidator’s fee not included)	3000
Business licensing in Labuan
Private fund license	9000
Insurance license or banking license	9000
Leasing license	9000

Step-by-step procedure for remote company registration in Labuan

1. Contact Q Wealth at in**@***********rt.com and ask our experts to help you with company registration in Labuan.
2. Talk to our consultants and choose any additional services you are interested in (if any).
3. Pay for the services you selected using a bank transfer, card payment, Bitcoin, WebMoney, Western Union, or MoneyGram.
4. Submit all the necessary documents, and our experts will proceed with company registration.
5. Once your company is registered, you can start operating in Labuan or elsewhere.  Q Wealth will also help you open a bank account in Labuan or abroad if you need one.

Don’t hesitate to email us today with your request or just leave your contact details and we will call you back in no time!