SET UP A 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 ZERO tax subject; however, any foreign capital gains and rental proceeds are taxable in respective jurisdictions of the real estates. Occasional stocks holding will be 0% tax on its capital gain.

Setting up the Labuan Investment Holding Company in Malaysia is fairly 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!

Labuan Investment Holding Company can be public listed in major stock exchanges such as Malaysia, Singapore, Hong Kong, Australia and Dubai. It is also deemed as the perfect vehicle for Initial Public Offering (IPO) or Reverse Take-Over (RTO) within the same entity in other jurisdictions which is more time and cost effective. Additionally, in order to comply with the Common Reporting Standard (CRS) as financial information standard for the Automatic Exchange Of Information (AEOI) which was introduced by the Organisation for Economic Co-operation and Development (OECD) in July 2014, Labuan comparing to other offshore jurisdictions like BVI, Cayman Islands, Seychelles etc. is so much easier and cheaper to administer!

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Malaysia is one of the most attractive places for foreign investments in Asia Pacific. There are many ways for foreign investors to maximise returns given the cost of real estates in Malaysia is relatively cheaper compared to its neighbouring countries. A Labuan Investment Holding Company is able to hold Malaysian real estates where pricing of properties is subjected to the Land office in every state. Below is the list for the minimum purchase price of property in Malaysia.