GENERAL INFORMATION
Labuan is an island located off the Borneo coast and is a Federal Territory under the administration of the Federal Government of Malaysia. Sharing a common time zone with many large Asian cities makes Labuan convenient for business dealings.
Since being declared an international business and financial centre in 1990, Labuan International Business and Financial Centre (Labuan IBFC) has steadily grown in reputation and financial standing over the years. Labuan Financial Services Authority (Labuan FSA) is the statutory body responsible for the development and administration of the Labuan IBFC.
Other basic facts: | Time zone | Greenwich Mean Time +8 |
Official language | Bahasa Malaysia (Malay) is the national language. English, Chinese and Tamil dialects are also widely spoken, with English being the language of business | |
National currency | Malaysian Ringgit (MYR) |
KEY CORPORATE FEATURES OF LABUAN COMPANIES
| SHARE CAPITAL | |
| Permitted currencies | Any foreign currency except Ringgit Malaysia |
| Standard currency | US$ |
| Minimum issued capital | One (1) in any denomination in foreign currency |
| Authorised capital | N/A |
| Par / nominal value | N/A |
| DIRECTORS | |
| Minimum | One (1) |
| Corporate director | Allowed |
| Local director requirements | Compulsory |
| Location of meeting | Anywhere |
| Minimum number of meetings | Per Articles of Association |
| Publicly accessible records | No |
| SHAREHOLDERS | |
| Minimum | One (1) |
| Bearer shares | No |
| Corporate shareholders | Allowed |
| Local shareholder requirements | No |
| Location of meeting | Anywhere |
| Minimum number of meetings | One (1) annually |
| Publicly accessible records | No |
| COMPANY SECRETARY | |
| Minimum | One (1) |
| Requirements | A resident secretary who must be a Trust Officer of a trust company OR a Labuan / Malaysian domestic company wholly-owned by the Labuan trust company |
| REGISTERED OFFICE | |
| Requirements | Principal office of a trust company in Labuan |
| ACCOUNTS | |
| Records | Kept in Labuan |
| Preparation of accounts | Yes |
| Audit requirements and filing | Required for Labuan companies which carry on Labuan Business Activities and licensed companies |
| Publicly accessible records | No |
| ANNUAL REQUIREMENTS | |
| Annual return | Not later than 30 days from the anniversary date of incorporation of the Labuan company |
| Annual government fee | On or before the anniversary date of incorporation of the Labuan company |
| Tax filing | Annual tax return needs to be filed with the Malaysian Director General of Inland Revenue by 31 March of that year of assessment. Normally, an extension of time for filing is allowed by the Inland Revenue |
| TAXATION | |
| Trading activities | 3% of net audited profits |
| Non-trading activities | Nil |
| Trading and non-trading activities | 3% of net audited profits |
| Others | No withholding tax, no capital gain tax, no stamp duty on offshore instruments |
| NON-TRADING ACTIVITIES | |
| Legal system | Common Law |
| Corporate re-domiciliation | Yes |
| Double taxation treaty access | Yes |
| Exchange control | No |
The information in this document is not advice of any kind but general information only and should not be relied on as legal advice. Kensington Trust Group recommends seeking professional advice on legal or tax issues affecting you before relying on it. While Kensington Trust Group tries to ensure that the content of this document is accurate, adequate or complete, it does not represent or warrant, express or implied, its accuracy, correctness, completeness or use of any of the information. Kensington Trust Group does not assume legal liability for any loss suffered as a result of or in relation to the use of this document. To the extent permitted by law, Kensington Trust Group excludes any liability for negligence, for any loss, including indirect or consequential damages arising from or in relation to the use of this document.