In today’s competitive market, many business owners are constantly looking for places where they can set up their offshore business to be more efficient in their fund placements and financial control including better asset protection management. But why? Because having an offshore company allows you to open an offshore business bank account for business transactions and personal financial affairs whilst enjoying low tax and great privacy. Indeed an offshore company offers you more flexibility and efficiency in your resource allocation and taxes.

If you own a business and you want to explore which low tax territory is better and ‘friendlier’ to open an offshore bank account, it is time to explore your options with Labuan rather than other offshore jurisdictions. Both Labuan and other authorities could offer the same services but the difference lies in the processes and requirements. We at QX Trust advice and guideclients on how to fulfill the necessary requirements with ease.

This article will describe the differences between Labuan offshore and other offshore jurisdictions.

Jurisdictions in Asia

If you want to protect your assets, increase your privacy and grow your business, using an offshore company is a powerful tool. It is an effective way to open an offshore corporate bank account which can help you legally minimise your obligations to governments. In some extreme cases, the economy of your home country can take a hit. Fortunately, you will be affected badly if you have setup your business in an offshore jurisdiction. Below are two common jurisdictions in Asia:-

Hong Kong

Hong Kong is one of Asia’s main regional free trade port and global financial hub. This jurisdiction has one of the most substantial, competitive and unrestrictive economies worldwide. Simple onshore taxation with a competitive level corporate tax rate of 16.5%, capital gains and no sales tax makes it an excellent jurisdiction to incorporate.

Singapore

Singapore is the trading hub of Southeast Asia.Clear and transparent tax scheme and territorial tax regime make this place popular among investors who want to do business and set up a company in this island country. Singapore’s onshore tax treatment is pretty similar to Hong Kong’s at 17% and requires a local Director.

Why Labuan?

Labuan is the only offshore jurisdiction in Asia and is known as an important location for establishing financial services and other businesses in Malaysia. Labuan, amid-shore jurisdiction, promotes tax transparency with a strong legal system and low tax framework that meets with the best practices and international offshore standards.

Get in touch with QX Trust and you will understand the main advantages of Labuan offshore offerings and how you can benefit from it.

Which Jurisdiction is Best for Your Business Setup?

There are many offshore destinations around the world, thereby, giving the investors a wide choice to take their pick from. As a foreign entrepreneur, you will look at the cost, regulatory and tax framework, political stability as well as ease of doing business that will suit to your offshore investment needs before deciding on a suitable jurisdiction for your offshore establishment.

Residency– Before choosing a particular offshore authority, you need to first consider if it is suitable for your intended business. Will you require a visa to stay within the territory or in that country?

Political and Economic Stability– The most important factor to consider when setting up a business in an offshore financial centre is to select a jurisdiction that provides both political and economic stability to ensure no disruption in business operations and corporate security.

Infrastructure – Another important factor to consider is how efficient and reliable is the infrastructure to connect and efficiently serve the cross bordermarket. In order to engage a service provider for offshore company formation in Malaysia, you will need to consider factors such as quality of telecommunications and the internet, physical access to the country, language, work ethics, the legal system, privacy in business dealings and corporate structure and the ease of doing business in that jurisdiction.

Tax Efficiency– Many will consider this an important factor before deciding on a jurisdiction to be domiciled in. In order to choose allow tax territory, you may want to understand the tax treaties that jurisdiction offers in order to take advantage and enjoy lower tax..

Why Labuan is Your Choice

Labuan, Malaysia is one of the most renowned financial centres in Southeast Asia. Here are a few reasons why Labuan is better than other offshore jurisdictions.

Low Incorporation Requirements: A Labuan company can be incorporated with only one investor / shareholder who can be a legal entity or a natural person.

Low Capital Necessities: The paid up of a Labuan company can be as low as USD 1.00 to start a company.

Easy Banking: Shareholders find it easy to open an offshore bank account in Labuan.

Privacy: Investors can use nominee director/shareholder services to protect their identities while remaining as beneficial owners of the company.

Why QX Trust for Your Cross Border Business Needs?

Operating a new start up in a foreign jurisdiction can be overwhelming and complicated, especially when one is new to the business. At QX Trust, we offer holistic business solutions to support our client’s business and banking needs. As a one-stop offshore company service provider in Labuan and Malaysia, other than providing consultancy, QX Trust also advises on business processes, including feasibility study to planning and establishment of an offshore entity. With a strong Legal and Compliance team, QX Trust also provides legal advice and drafting services on offshore and onshore matters.

To know more information or register a business license in Labuan, do contact QX Trust at + 60 3 9212 6940 or consultant@qx-trust.com.