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Summary of Labuan offshore company main features & benefits |
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| LABUAN CORPORATE DATA SHEET-SUMMARY | | Type of company | Offshore Trading or Offshore Non-trading | | Common or civil law jurisdictions | Common | | Shelf company availability | No | | Time to incorporate | 2-3 days approximately | | Min. annual duty or franchise fee | App. US$450 (RM1500.00) | | Annual return filling fee | Nil | | Taxation | 3% or app. US$6000 (RM20,000) for trading co. & zero tax for non-trading co. LOC can now elect to be taxed under ITA 1967 and pay local rate of 26% in order to access all of Malaysia’s DTAs. | | Disclosure of beneficial ownership | No | | Bearer shares | No | | Standard minimum paid up capital | US$1 | | Standard authorised share capital | Approximately US$14,000 | | Permitted currency of capital | Any currency except local currency RM | | Minimum number of shareholders | One | | Minimum numbers of directors | One | | Corporate directors | Yes | | Local directors | No | | Company secretary | Yes | | Company seal | Yes | | Public record of directors | No | | Public record of shareholders | No | | Location of directors meeting | Anywhere | | Location of shareholders meeting | Anywhere | | Telephone board meeting | Yes | | Double taxation treaty access | Yes | | Requirement to file accounts | Trading co paying 3% Yes/Non-trading No | | Requirement to prepare accounts | Yes | | Requirement to file annual returns | Yes | | Change in domicile | Yes | | Local registered address | Yes | | LABUAN IBFC-COST AND BENEFIT ANALYSIS | |
| Star Rating |
| | Corporate registration efficiency | ***** | Very efficient. Name search takes 1-2 hours only and name reservation within one day. Company can be incorporated in 1 to 2 days | | Availability of name | ***** | Names are easily available. | | Confidentiality | ***** | Excellent. Unauthorised disclosure of client's information is subject to penalty. | | Political stability | ***** | Excellent. Since independence in 1957 Malaysia has enjoyed continued political stability | | Maintenance cost | **** | Higher by comparison to IBC jurisdictions like BVI, Brunei, Nauru (?) or Bahamas. | | Legal system | ***** | Based on English legal system. Islamic laws apply to Muslims only in matters involving marriage, custody and inheritance. | | Regulator | **** | LOFSA is under the Central Bank and is an excellent regulator. LOFSA is also a member of various international regulatory bodies. | | Location | *** | Located off the coast of Sabah in East Malaysia (which is on the island of Borneo). Connections to Pen Malaysia by twice daily flights ex Kuala Lumpur. | | Exchange control | **** | Very liberal | | Rate of tax | **** | Very favourable, being 3% or RM20,000 whichever is elected. | | Double tax treaty access | **** | Malaysia has signed 68 DTAs with its business partners and Labuan being part of Malaysia enjoys access to most of them. Among the few countries that have excluded Labuan from the country’s DTA network are Japan, the UK and Switzerland. | | Local banking services | *** | Good. Although there are more than 50 offshore banks in Labuan, not all of them take deposits. Initial deposit ranges from US$5,000 to US$500,000. Availability of internet banking is limited. | | Time zone | **** | Same time zone with major Asian capitals | | Reputation | **** | Labuan is part of Malaysia which is a major trading nation |
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