We advise on structuring and incorporation of Labuan legal entities under a well-supported robust, modern, and internationally recognised legal framework enforced by Labuan International Business and Financial Centre (Labuan IBFC) and its regulator, Labuan Financial Services Authority (Labuan FSA). Labuan popular company types include:
1. Labuan Trading Company
Setting up a trading company in Labuan is an ideal choice as it offers a wide range of permissible business activities under the regulation of Labuan Financial Services Authority. Additionally, Labuan being a midshore jurisdiction, it allows her legal entities to enjoy dealing with the local market subject to the local tax regime. With this advantage, more business opportunities and flexible trading methods are generated for foreign and local owners.
2. Labuan Investment Holding Company
A Labuan Investment Holding Company (IHC) offers 100% foreign ownership, one of the key propositions to attracting many business owners to acquire overseas businesses, stocks and even real estates while enjoying ZERO tax! It can be utilised as a structuring resolution due to the ownership being preserved and consolidating all foreign companies and entities under one holding company. This method of structuring is deemed beneficial, whereby acquisitions would be simpler when purchasing or liquidating as a whole unit. All dividends received are subject to ZERO tax; however, any foreign capital gains and rental proceeds are taxable in respective jurisdictions of the real estates.
Setting up the Labuan Investment Holding Company in Malaysia is easy with a minimum of one Director and Shareholder, both being the same individual or a legal entity while you are in full compliance by submitting your annual Management Account for non-trading activities!
