Opening a Labuan Offshore Bank Account – Some Considerations

Offshore bank accounts are one of the most convenient financial instruments available and one can use them for international business. It is no longer an asset that is only available to the affluent or wealthy class, there are many financial institutions that are opened to intermediate-class individuals additionally to develop a cache of financial resources.

Read About: What Makes Labuan Offshore Banking Unique

Main Objectives

Safeguard Your Assets

An offshore account is the most fundamental kind of asset protection. It can aid in safeguarding account holders from becoming financial objectives, of litigation or even governments, which are proposing to make it simpler to freeze assets and/or block access to bank accounts when particular criteria are matched. After the offshore account is opened, savings are ensured and positioned beyond the reach of government agencies in the country of residence. In this regard, they can’t be simply seized, frozen or devalued and, more significantly, the funds are always available when they are most required.

Expand Your Portfolio

Retaining liquid capital in different currencies is a fundamental hedge against national risk. It is also a feasible method of transforming portfolio risk, safeguarding buying power and internationalising savings. Local accounts usually offer few and/or costly choices for holding foreign currencies. Conversely, offshore banking provides depositors with suitable online platforms for holding diverse foreign currencies.

‎‎Peace & Satisfaction

Most clients are already aware that opening an offshore bank account can aid to secure bank clients/account holders from the ‎actions of bankrupt governments and the fallout from risky banking systems. Proceeding towards this ‎reasonable step to secure yourself will offer you peace and contentment.

Essential Factors


If you are a business owner, you understand the importance of minimising risks. You must have heard the famous saying to never keep all your eggs in one basket, and it applies to your business finances too. You do not have to keep all of your funds in offshore accounts, however, diluting your risk by placing money in various several kinds of accounts is a prudent approach, and offshore bank accounts can be part of that process. This is both a smart financial and political move.

Minimum Deposits

Some offshore banking organisations need minimum funds, which smaller businesses will have issues coming up with. However, this is not true in all cases. It is better to do prior research to know the offshore banking institution which is ideal for your organisation, however, you can find banks that ask for low deposits to open an account.

Remote Banking

The development of online operations, involving communications and security, has made remote banking not only possible but comparatively safe and trustworthy. Consequently, you can open and handle your offshore accounts in an entirely remote way, simply accessing funds that are held overseas.

An Interesting Read: Setting Up an Offshore Company – Know the Process

Benefits of a Labuan Offshore Company

Tax Savings

A Labuan offshore company can legally reduce your business tax obligations owing to the offshore’s low/zero-tax jurisdiction. For instance, Labuan’s tax rate is 3% of audited net profits for organisations involved in trading activities (including import and export as well as services). For Labuan organisations exclusively for investment holding intents, there will be no tax charges and audit reports are not required.

Furthermore, the Labuan tax regime unique features are:

  • Less tax filing obligation
  • No assessment of income and bi-monthly deductions
  • Perpetual tax exemptions
  • Labuan entities can access benefits under the Malaysia Double Taxation Agreements (DTAs)
  • Labuan entities can invest in domestic organisations while enjoying the tax exemptions accorded in Labuan IBFC
  • Ease of succession/transfer of ownership

For individuals who own several properties in various countries, employing an offshore holding company is a functional administrative strategy that reduces probate when you pass away. Utilising an offshore entity like a Labuan company for property investment purposes, you can own the company entirely with single ownership or with several partners. There will be no inheritance tax and disposals/transfers can be done by the way of shares transfer.

Recommended Read: How to Set Up a Labuan Offshore Company

Boosted Confidentiality

Similar to most offshore jurisdictions, including Labuan, provides the advantage of anonymity and privacy. Significant information like the shareholders, directors or beneficiaries of the organisation will not be disclosed by the registrar nor will they be publicly published. Given that there are no suspicions of criminal or terrorist activities, your entity in Labuan receives complete anonymity.

Minimised Administrative Obligations: Set-up and Maintenance Costs

The legal obligations of any directors or officers of offshore companies are frequently more relaxed than LLCs. Most offshore companies utilise virtual office services, for accounting needs, employees/staff or a physical office, as it is more cost-effective. The procedure of setting up an offshore company in Labuan is comparatively quick and easy. This interprets to lower costs for both determining and maintaining an offshore company that satisfies the new economic substance requirements.

Low Capital and Shareholding Needs

For Labuan’s jurisdiction, a minimum of one share is needed. In addition to this, there is no minimum capital requirement. Labuan companies can issue shares of various classes and several rights however no bearer shares are needed. Shares can be denominated in any currency except Malaysian Ringgit.

The minimum number of shareholders in a Labuan offshore company is one. The shareholder can be a person, a corporation or a Trust company holding the shares as a nominee, or on trust.

QX trust ensures to seek ways to make opening an offshore bank account in Labuan as easy as 1-2-3.