A new step in business development can be the creation of a company in another country like Labuan. This will reduce the tax burden on the business owner and allow him to conduct business around the world. Labuan, the financial center of Malaysia, appears to be one of the suitable places for registering and opening a company.
At the moment, it is recognized as the lowest tax jurisdiction that does not attract much attention from the leading countries. Labuan received this status back in 1990 due to its advantageous territorial location between the Philippines, Malaysia and Brunei.
But the process of registering a new company has its own nuances, and so that all standards and norms are observed, it is worth contacting professionals.
The specialists of Eternity Law International have sufficient knowledge and skills to successfully provide services for remote registration of offshore companies. The organization also offers its clients a range of related services, including the assistance of highly qualified lawyers, accountants and attorneys.
The offshore jurisdiction of Labuan is gaining popularity not only due to its favorable geographic location, but also due to the presence of one of the most extensive list of treaties that exclude double taxation.
At the moment, more than 60 banking institutions are registered in the state, as well as many insurance, leasing, trust firms. Bahasa (Malaysia) is the official language on the islands, but English is also widely spoken.
The currency of Labuan is ringgit, but for offshore companies it is not allowed to conclude a deal in the local currency in most cases.
State legislation provides an opportunity to register enterprises of various forms of organization with varying degrees of responsibility. For an investor from another country, two types of companies are most optimal:
The first is characterized by the presence of capital in the minimum allowable amount, which is equal to two ringgits, and 50 shareholders (the maximum number). They are allowed to transfer shares to a third party (or several persons) in free form, as well as to issue credit funds to directors or other firms.
In addition, organizations of this type are exempt from submission of the balance sheet of activities in the territory of Malaysia.
The latter also have the right to be registered on the state stock exchange and give shareholders the right to freely transfer shares to third parties.
But the distinctive feature of open companies is an unlimited number of shareholders. But the minimum capital must be 20 million ringgit, which must be paid in full by the time the company is registered. Such organizations are required to have auditors accountable to the registrar of firms in Malaysia.
You must have a package of documents for all types of companies registered in Labuan, which consists of:
The registration itself will take 2 weeks. You can also purchase an already registered company that can engage in any type of activity, which is not prohibited by law.
A trading company wishing to be listed on the Labuan exchange can choose the tax plan that suits it best. There are two options:
But the functioning of firms that do not conduct trading activities will not be taxed at all, which will reduce the tax burden on such enterprises.
Among the advantages of registering an enterprise in Labuan, the absence of currency control and a number of taxes are distinguished.
In addition, the advantages of this federal jurisdiction include the ability to use a nominee service and the confidentiality of information about the owner of the company and its banking operations. Also, the state provides the opportunity to open a bank account.
Almost all individuals and legal entities are provided with tax benefits. Certain types of profit are exempt from tax, regardless of who owns it, a resident of another state or a representative of the country where the company is registered.
If you need to get high-quality services for registering a company in Labuan, remotely contact the specialists of Eternity Law International, who will provide a comprehensive high-level service. The list of services includes:
For consultation and clarification of the details of cooperation, please contact the contact numbers or fill out an electronic application. Also, answers to your questions can be obtained by contacting the company’s CRM at the bottom of the page.
The international company Eternity Law International provides professional services in the field of international consulting, auditing services, legal and tax services.