Guide to Setting up Personal Investment Holding Company in Labuan

Guide to Setting up Personal Investment Holding Company in Labuan

There are several ways in which Labuan can be used as an investment vehicle. One of the key advantages about the Labuan jurisdiction is that it offers 100% foreign ownership and NO taxes.  Malaysian and foreigners are allowed to set-up personal Investment Holding Company (IHC) by being the shareholder. These Labuan Investment Holding Company (Labuan IHC) owners may hold access to the bank account of various foreign currencies. Since Labuan IHC diversifies the business, it makes acquisition simpler, and in addition, to allow the business owners to maintain ownership throughout the structure.

Let us have a look at the tax profile of a Labuan investment holding company:

 

  • No withholding tax on dividends, royalty fees, management account, etc
  • 50% tax rebate on personal income
  • No GST or sales tax on international business activities
  • No foreign exchange control
  • Zero tax on holding assets and properties
  • Allowed to have a multiple currency bank accounts
  • Able to invest in overseas real-estate including Malaysia

In simple words, the Labuan investment holding company is capable of holding assets and investments of any kind. The high degree of flexibility and the structure are favoured by a majority of entrepreneurs and successful business owners. An investment holding company is also incorporated for the purpose of owning various types of properties in copyright fields and real estates. In addition to the above, a Labuan IHC used for holding purposes is not taxable (0% Tax) hence with proper corporate structuring, business owners can benefit from the use of the Labuan IHC without having to pay excessive tax.

Before setting up an investment holding company in Malaysia, it is advisable that you understand the rules under the Companies Act. In order to set up your Investment Holding Company in Labuan, there are a few more rules to observe and most importantly is the need to engage a reliable trust company.

Activities Performed by an Investment Holding Company in Labuan:

 

  • Holding investments for other companies in Malaysia or overseas
  • Holding stake of a newly acquired business
  • Holding investment for securities, stocks, loans, and deposits
  • Holding financing for real estate and immovable properties

QX Trust has been consulting clients in areas of offshore investment holding company incorporation in Labuan. Contact us at +60 3 9212 6940 or consultant@qx-trust.com for a free consultancy. Whatever the requirements and structures required for the establishment of an Investment Holding Company in Labuan, QX Trust will be guiding you all the way. QX Trust also advises on holistic wealth management and estate planning. To know more, kindly visit (https://www.offshore-labuan.com/private-foundation/)