Labuan is a tropical island that is located 10km off East West Malaysian State Sabah’s northwest coast. The deepwater anchorage of Malaysia is not only a free port but also a Federal Territory and a centre for international business and finance. Many entrepreneurs and investors have already or are in the process of setting up businesses in jurisdictions like Labuan to facilitate entry into international markets and to enjoy tax benefits.
Labuan’s location in the centre of the Asia-Pacific region and easy access to major cities such as Kuala Lumpur, Singapore, Taiwan, Seoul, Manila, Hong Kong, and Jakarta are other factors that are driving investors and entrepreneurs to think in terms of setting up a Labuan entity. Further, Labuan lies in the same time zone as these cities and shares language as well as culture with most of these cities. In addition, Labuan is located in South China Sea waters, very close to major offshore oil as well as gas fields and shipping routes.
Why Set Up A Labuan Entity
Malaysia residents and non-residents, foreign investors and entrepreneurs, and small, medium, and multinational businesses benefit a great deal by opting for the incorporation of a Labuan company, registration of a Labuan foreign company, or registration of a foreign company that is incorporated in another country as being continued in Labuan. This is because it gives them a launch pad to the developing economies of the region.
Apart from this, entrepreneurs and investors can also benefit from the wide range of trade agreements (Double Tax Agreements) that Malaysia has entered into with other countries, a very attractive tax system, intellectual property protection, and ease of doing business.
A Labuan entity can be registered easily and quickly as the required procedure can be completed in a couple of days provided all documents are organised properly in advance. Of course, it often varies from one case to another. Companies are allowed to carry out both trading and/or non-trading activities through Labuan International Business and Finance Centre (IBFC).
Labuan Company Registration Guide
Among various types of business entities, the one that is commonly established and registered with Labuan IBFC is the private limited liability company. It offers an enduring structure because it is a legal entity, and owners enjoy limited liability and better public perception. It is also easy to raise capital and transfer ownership when compared with partnership and proprietorship businesses. As far as foreign business owners are concerned, a Labuan entity is an offshore company that is governed by the Labuan Companies Act 1990.
QX Trust is a company established under the Companies Act in Labuan. We are also a licenced Trust Company. We can help you set up a company in this offshore jurisdiction of Malaysia on the basis of a simple predictable pay-per-use pricing model. We have a team of experienced, dedicated, and professional, members and we specialize in providing the complete range of services.