Labuan, a special region in Malaysia, is one of Asia’s main offshore centers. Over the years, Labuan has attracted many foreign businessmen for setting up offshore companies through tax benefits and other incentives. Moreover, several different types of legal entities can be established in this jurisdiction. Read on to find out more about offshore company registration in Malaysia.
Company Name
Offshore companies are allowed to have foreign names, but there should be Latin alphabets in them. Some words such as Bank, Insurance, Building Society, etc., if included in the name, need to be approved prior to company registration. Words such as Corporation, Sociedad Anonima, or Limited Societe Anonyme can be used to denote liability. The validity of a reserved company name is three months.
Documents Required
The documents to be provided for offshore company registration in Malaysia are dependent on the structure that is chosen.
The registration documents, together with articles and memorandum of association, need to be approved by relevant authorities before registering the company.
Further, the number of directors, as desired, has to be appointed. Moreover, directors must provide certified copies of identity documents.
Incorporation Process Time for Offshore Company Registration In Malaysia
The time required to register an offshore company depends on the time needed to comply with the terms and conditions stipulated by the authorities. It takes about three to five working days to complete the whole process after the background checks are done.
Number of Directors and Shareholders
An offshore company to be registered in Malaysia must have at least one shareholder and one director. Corporate companies can be named as each of the shareholders and directors. Fortunately, the offshore company need not have a resident director. However, a resident secretary is a must.
Goods and Services Tax
An offshore company registered in Malaysia is liable to pay Goods and Services Tax if the company’s turnover exceeds MYR 500,000. Further, the GST liability has to comply with the terms and conditions stipulated by Malaysian Customs. Any global company incorporating an offshore business in Labuan must be prepared to comply with this law.
The Malaysian government is welcoming foreigners to incorporate companies in Labuan Malaysia by offering tax benefits and 100 percent ownership facility. However, all offshore companies are expected to comply with the rules and regulations stipulated by Company Formation Authority in Labuan, Inland Revenue Authority, Malaysian Central Bank, and Malaysia Immigration Authority.
The best and most effective option when it comes to offshore company registration in Malaysia is to work with QX Trust – Offshore Labuan. You just have to hand over the required documents to us. We will facilitate the registration process related to the incorporation of your offshore company.