Everything You Need to Know About Off Shore Company Registration in Labuan
Want to know more about Labuan Company Registration? We have so many investors who wish to register or incorporate their companies in Labuan. The challenge we have is that most entrepreneurs lack information on the process of company formation, registration, and incorporation. This article attempts to shed light on this topic on the Labuan context. Here are some of the things you may need to understand before forming and registering a company in Labuan.
There are several documents you require to allow you register or incorporate your company in Labuan. These requirements depend on the structure of your company. All the registration documents including the memorandum and articles of association have to get approval from the relevant authorities. You also need to get the required number of directors before incorporation. All the directors should provide certified copies of their identity documents. The best way forward is to get an expert to facilitate the entire process. You simply provide the required documents and allow the professionals to facilitate the registration process of incorporation.
Length of the Incorporation process
The number of days for registration may vary depending on how long you take to comply. The process should typically take three to five working days after you have been cleared and completed the background checks. Labuan company registration, formation and incorporation should not take a very long time. Involving professionals in the whole process can make it move faster.
Labuan Company Formation
Number of Shareholders and Directors
You require at least one shareholder and one director for you to incorporate an offshore company in Labuan. Both the shareholder and director can be corporate companies. You can search more information on how to register a company in Labuan.
Most people wonder whether they need a physical office in Labuan to have their company incorporated. The truth of the matter is that you don’t need a physical office. However, Labuan companies that are applying for a marketing office and all licensed entities like insurers, bankers and money brokers must have physical offices within the region.
Resident director requirement
Another common concern is whether an offshore company must have a resident director. It is not a must to have a resident director, but you must employ a resident secretary. This position should be filled as a trust company. We can assist you to fill this position as a trust company.
Offshore Company Registration in Malaysia
Access to Labuan Company Information
The other question could be whether someone can access Labuan company information publicly. Labuan is among the best justifications that promote confidentiality. This means that company information is not available for public access.
Physical Presence of Shareholders and Directors during Meetings
This is a point of great concern, and you need to understand before incorporating a company in Labuan. Physical presence is not necessary as you can carry out your meetings from anywhere in the world.
The other question could be whether Malaysians can own a Labuan international company. The answer is yes and dividends that Labuan companies pay to Malaysia shareholders are exempted from tax. This encourages a lot of offshore investors from Malaysia.
Setting up an office in Malaysia
Another thing to note is that Labuan companies cannot set up an office anywhere in Malaysia. They can only setup their marketing offices in Iskandar Malaysia and Kuala Lumpur and management offices in Labuan. You can go through a complete guide on how to set up marketing offices in Malaysia to gather more information.
Offshore Company Formation Malaysia
It’s good to note that Labuan international companies can employ local Malaysians
As a foreign shareholder or director, you don’t have a mandatory obligation to contribute towards the social security organisation and employee provident fund. This is because registration is compulsory to Malaysian employees only.
There are two ways to terminate your Labuan Company. This can be through voluntary winding up or default in the payment of the Labuan annual fee. Your company can be terminated due to non-compliance with the law. You need to understand this at the company formulation stage. If you want to keep your Labuan Company active, you need to pay your annual fee, clear any penalties with FSA and comply with other authorities like the Inland Revenue.
GST is a must for all offshore companies that have a turnover of RM 500000 and above. This requirement is subject to the terms and conditions as laid down by the Malaysian customs. You cannot think of Labuan company formation and incorporation unless you are willing to comply with the later.
Labuan Company Incorporation
Having gone through this article, you have all it takes to ensure that your business is registered and incorporated correctly. In case you are looking for a Labuan company registration service, we are always there for use. We will make sure that you get your registration certificate within the shortest time possible. You are welcome to contact us anytime for support.