LABUAN OFFSHORE COMPANY FORMATION
Contact Us to Get a Free Consultation on Labuan Offshore. Consultation will be held in our office at Kuala Lumpur.
LABUAN OFFSHORE COMPANY FORMATION
By setting up the Labuan Offshore company, the companies and individuals will be able to enjoy a full range of attractive tax benefits offer by the various jurisdictions and this is a good and effective tax planning tool.
Now, you can setup an Offshore Company here, in Malaysia with MalaysiaWills.com. You can also setup a Shelf Offshore Company
Brief Facts about is Labuan Offshore in Malaysia?
Location of Labuan Offshore Jurisdiction:8 km off the coast of Sabah, 123 km from the capital city of Sabah – Kota Kinabalu
Population of Labuan Offshore Jurisdiction: 75,000
Type of Law in Labuan Offshore Jurisdiction: Common law
Procedure and Time Frame to Incorporate Labuan Offshore Company ?
The time frame for the incorporation of a Labuan Offshore Company is about 2 – 3 days.
Upon receipt of the questionnaire for incorporation we will proceed to conduct a name search on the availability of the proposed name with the Labuan authority. This will take about 1/2 a day – 1 day.
If the name is available for use, the documents for incorporation will then be submitted. These are comprised
of the following:-
a. Form 21 – Consent to Act as Director Form.
b. Memorandum and Articles of Association (our standard objects and articles clause shall apply here).
Once the documents for incorporation have been submitted, the local authority will normally take about 1 day to issue the certificate of incorporation.
The above time frame of the Labuan Offshore Company is based on using our nominees as promoters for purposes of incorporation of the
company. Our elected nominees will subsequently resign as director and transfer the shares to your client’s nominees after the company is duly incorporated.
Labuan Offshore Company Formation Details
|Type of Company||Minimum Number of Directors||Minimum Number of Shareholders or Equity Participants||Taxation on Foreign Profits||Local Directors / Secretary Required||Requirement to File Annual Returns or Similar||Registered Office / Agent||Corporate Directors Permitted||Requirement to Submit Accounts|
|Offshore||1||1||3% or RM20000||No / Yes||Yes||Yes||Yes||Yes / No|
Cost Involved for Labuan Offshore Company Formation
|1. Incorporation Package||USD 2700|
|2. ANNUAL FEES||USD 2400|
|Business Registration Fee / Government Fee||USD500|
|Registered Office / Agent / Resident Secretary Fees||USD1900|
|Corporate Secretarial Services Fee||–|
|3. OPTIONAL FEES|
|Corporate Nominee Director Fee (minimum fee per director & subject to activities required *500)||USD1000|
|Corporate Nominee Shareholder Fee(in respect of each beneficial owner *250)||USD500|
|Opening of Bank Account Fee (minimum fee)||USD350|
|Hold Mail Service (in Singapore)||USD350|
Labuan Offshore Fees involved – INCORPORATION Fee
Our fee for the incorporation of an Labuan offshore company is US$2,700.00.
(this is in respect of a company with an authorised capital not exceeding the amount of RM50,000.00 or its
equivalent and using our standard Memorandum and Articles of Association without any amendments or
Labuan Offshore Fees Involved – ANNUAL RETAINER
Our annual retainer fee for an Labuan offshore company is US$2,400.00 per company per annum.
This fee would basically cover the following:-
a. The use of our address as the company’s registered office.
b. Our staff and or a company, will be made available as the resident secretary of the Company.
c. The basic annual functions in maintaining a Labuan Offshore Company i.e. the preparation of Annual
Return, Members’ Resolution to adopt audited or unaudited accounts / defer the appointment of
auditors (if relevant).
(Items A and B above are compulsory under Labuan legislation.)
Labuan Offshore Company Fees involved : OUT OF POCKET EXPENSES
It is our policy to collect US$250.00 (United States Dollar two hundred and fifty only) before the
commencement of our service to cover such expenses. In the event that the company ceases operations or
should you decide to terminate our services the balance (if any) of US$250.00, less any outstanding outof pocket expenses, will be refunded to your client.
Labuan Offshore Company Fees involved : OTHER ANNUAL MAINTENANCE FEES
Annual Government Fee for Labuan Offshore Company: The annual government fee for Labuan Offshore Company is US$500.00, payable to the local authority on the anniversary of the date of incorporation of the offshore company.
Labuan Offshore Company: Documents Filing
Filing Of Forms / Document:Filing of certain documents such as Audited Accounts or Forms such as Notice of Resolution, Notice of Appointment of Auditor would also attract a filing fee of US$14 per document / Form.Thus where the company is dormant i.e no statutory forms are filed, no filing fee will normally be incurred during that year.
Labuan Offshore Company Fees involved: Tax Regime /Tax Return / Tax Agent:
You may wish to consider engaging a tax agent for this purpose or alternatively we may assist you the preparation and filing of the relevant tax return with the Malaysian Inland Revenue Board.
A basic fee of US$480.00 will be charged for the preparation and filing of the tax return, and where additional compliance work arises i.e. application for extension of time of tax filing deadline and sending out reminders, accordingly additional fee will be charged (this would not normally exceed US$500.00).
Labuan Offshore Company More Details on Tax Regime
There are two types of Tax treatment. #1 and #2. Kindly study it carefully or contact us for consultation.
Tax Treatment #1 for Labuan Offshore Trading Company : 3% of net profits as per audited accounts; or may elect to be charged to tax of RM20,000.00 instead. (approximately USD 5,300)
Labuan Offshore company carrying on an offshore business activity which is an offshore trading activity. Trading includes banking, insurance, trading, management, licensing
Tax Treatment #2 for Labuan Offshore Non-Trading Company : ZERO Tax
Labuan Offshore Company carrying on an offshore business activity which is an offshore non-trading activity. Non-trading activity means an activity relating to the holding of investments in securities, stock, shares, loans, deposits and immovable properties by an offshore company on its own behalf.
Labuan Offshore Company Salient Feature
|Governed by:-||Offshore Companies Act 1990|
|Registered office in Labuan||Yes|
|Minimum number of Shareholder||One (1)|
|Minimum number of shares||One (1)|
|Bearer Shares||Not Allowed|
|Access to Double Taxation Agreement||Yes|
|Minimum number of director||One (1)|
|Filing of annual return||Yes. Not more than 30 days prior to the anniversary of the date of incorporation of the offshore company|
|Maintaining proper accounting records||Yes. entries must be updated within 60 days from the relevant transaction|
|Appointment of Auditors||Company may resolve not to appoint auditors for each financial year. However this must be resolved within 90 days of it's incorporation.|
|Requirement of audited accounts||Optional. The directors shall lay the audited or unaudited accounts before the members not more than 9 months from the date to which the accounts are made up|
|Incorporation time||2-3 days|
Contact Us to Get a Free Consultation on Labuan Offshore