How can I open an IBC in Labuan?
Labuan International Company or IBC as it is known is a preferred business structure chosen by foreign investors who are interested in tax advantages in this offshore jurisdiction. The registration of an IBC in Labuan is simple, and it starts as soon as the activities are set up, and the name is chosen. Also, institutions like the Inland Revenue Authority, Labuan Financial Services Authorities or the Central Bank of Malaysia will make the necessary approvals for an IBC in Labuan. Having 100% foreign ownership is a solid benefit for entrepreneurs from abroad who decide for investments in Malaysia. Besides that, 1USD is the minimum share capital for opening an IBC in Labuan. In matters of taxation, the 3% rate represents the flat fee imposed on the company’s profits generated in Labuan. Moreover, an IBC in Labuan is protected by a series of double taxation treaties signed by Malaysia with countries worldwide.
Below, we summarize once again the main characteristics (and requirements) for a Labuan company:
1. Management: the company must have at least one company director and a resident secretary.
2. Office: the company is required to have a registered office in Labuan, which may be a virtual office as described below.
3. Capital: there is no requirement for a large minimum share capital for the Labuan company; the usual amount is 1 USD.
4. Shares: although the company may not have bearer shares, treasury shares are allowed and the company can have different classes of shares.
For those investors interested in Labuan company formation, our team offers special services related to the incorporation of legal entities. We can assist entrepreneurs in drafting the Memorandum and Articles of Association as well as the director and shareholder statements and other declarations when needed. Once the documents are finalized, we can help make the submission for registration. The company founders will also be required to apply for a work permit and this is granted when the individual will occupy a top management position. The permit can also be granted for other company members, such as for those in the middle management or for technical experts. One of our agents can provide you with more information about the work permit requirements for foreigners in Labuan. As a final step, we can assist in opening a bank account. This will require a different set of documents and submissions and investors may be required to open the bank account in person, as per the selected bank’s regulations.
An alternative to company formation in Labuan is purchasing a ready-made company. This has several advantages, such as the fact that the business already has a chosen name and no checkup is required.
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