An offshore company in Malaysia is which that started overseas. It is a company which is started by a foreign person in a foreign land. It may not be necessary for an offshore business to start as a whole organization. Starting an offshore company can be started as a group or a division.
Offshore business is where functions such as tax-free, trading, asset security and privacy are included. There is an advantage in starting an offshore business. The rules and regulations are less and the strictness here is less. Most of the multinational companies do prefer to start an offshore business.
Labuan is a place in Malaysia, it is situated in Borneo and located with various other islands which is the federal territory of the country. Labuan is situated with 6 smaller states in the east of Malaysia. Labuan’s capital is Victoria, the capital is famous for offshore financial center which in short is known as IBFC.
It is an important place for Malaysian import and export. Labuan seeks for the improvement of the oil and gas industry. Currently their most successful industry is the Banking services. The GDP of Labuan is claimed to be successful where its growth rate is 5.8%. The economy in Labuan is developed and stable.
Labuan is the place to start any offshore business in Malaysia. It is recommended to start an offshore business in Labuan since Labuan is the main hub for foreign or international business.
LABUAN OFFSHORE COMPANY IN MALAYSIA:
In Malaysia normally the rules and regulations are quite strict. But when it comes to offshore business the Malaysian regulations are quite simple and not strict. The offshore business allows the functions such as bank transactions, personal financial affairs with tax and high level of privacy. There are mainly 3 issues for Malaysian offshore business.
The main purpose to have an offshore business is to increase the tax efficiency for international cross-border business. The jurisdictions in Malaysia offers best tax.
PROTECTION FOR FUTURE LIABILITIES:
When putting assets for the offshore business along with proper legal preparations. During this process, it is important to have security to protect the future liabilities.
In an offshore company, it is required to have a bank account and assets. In Malaysian offshore company, it is not required to have your name. Not exhibiting your name shows a higher level of privacy and security. This is the common OECD implementation level offered by a Labuan offshore company. The Labuan offshore companies are not taken as the public record. Thus, there is a guarantee of privacy. The guarantee is given by company officers, shareholders and beneficial owners.
LABUAN OFFSHORE COMPANY ELIGIBILITY:
- If you are a Hong Kong citizen and functioning your business from your country then the Labuan offshore company provides immediate tax savings and deferral opportunities. Hong Kong and international sales revenue prefers low net profit tax 3%.
- Operating international company with bank accounts of various other global currencies. This will bring an investment advantage with the diversification of protection. This will help in the protection of return and reduces loss. Labuan offshore company can operate in bank accounts which are different countries such as Malaysian Ringgit (RM), Singaporean Dollar (SGD), Australian Dollar (AUD), American Dollar (USD), Euros, Renminbi, Yen, Rupees, etc.
- If you are from the country which as limited remittance, then the business income residing outside your country provides convenience for more income globally. This function is provided with protection.
- If you are a Singaporean having international business. Trading with Labuan offshore company will give you a great deal for saving tax and efficiency. Living across Johor provides you a big deal of tax efficiency and tax efficiency. You also can start a marketing office in Iskandar to develop your business.
If you have contact with USA to provide the Malaysian services it will be beneficial. Along with the Labuan offshore company you can also appoint personnel with 2 years renewable multiple entry. Labuan work permits to facilitate business.
STEPS TO START A LABUAN OFFSHORE COMPANY IN MALAYSIA:
- Know the type od business you are starting
- Arrange tax and compliance
- Names and identity of the company such as LLC, LTD, etc.
- Final decision of paid-up capital
- Type of account
- 2 years of multiple entry visa including spouse, children and other family members.
Can any nationality apply for Labuan offshore company?
Yes! Can citizen around the world can start a company in Labuan.
Is an offshore company available in any place in Malaysia apart from Labuan?
No, only Labuan has offshore company in Malaysia.
Is there a minimum amount of deposit to be exhibited?
It depends on what bank and type of account opened.
How long does it take to start the Labuan offshore company?
It takes around a week to complete the setup
Who are the minimum members in the company?
- 1 director
- 1 shareholder
- 1 secretary
- Registered office in Labuan