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:

1. amendments to the Labuan Business Activity Tax Act 1990 (LBATA Amendments);


2. introduction of the new Labuan Business Activity Tax (Requirements for Labuan Business Activity) Regulations 2018 (Economic Substance Regulations); and


3. introduction of the new Income Tax (Deductions Not Allowed for Payment Made to Labuan Company by Resident) Rules 2018 (Disallowed Deductions Rules).

Offshore company registration fee in Malaysia
Labuan company registration fee is usually from USD 1000 to USD 1500, the full package can cost USD 5000 to USD 5500, the annual maintenance fee is USD 2500 to USD 2600. We are offering one of the best experienced Labuan or Offshore company registration or setup services at a very competitive price. For more info please connect with our Kuala Lumpur Business Specialist at malaysia@d-b-in.com