JURISDICTIONS
Labuan
General Information
| Location | Situated on the northern edge of Brunei Bay facing the South China Sea, the Federal Territory of Labuan is part of Malaysia and comprises of Labuan Island and six other smaller islands. |
| Administration | Administered by the Federal Government of Malaysia |
| Population | About 78,000 |
| Language |
Main language is Bahasam Melayu |
| Legal System | English Common Law |
| Currency | Malaysian ringgit (approx. USD 1: MYR 3.7) |
| Exchange Control | None |
| Economy | Oil and gas industry Business and Financial services |
| Time Zone | GMT +8 |
| Principal Corporate Legislation | Malaysia Offshore Companies Act 1990 |
| Number of companies incorporated in 2008 | About 570 |
| Total number of companies on register | Approximately 6,870 |
Introduction
Labuan was established as an international offshore financial centre in October 1990, but 2002 was the year in which the territory established itself irrevocably as a premier player that was recognised to become a world centre for Islamic banking and finance by the international financial community.
LOFSA, the Labuan Offshore Financial Services Authority, was established in 1996 as a single regulatory agency or a one-stop agency for the offshore centre that contributes greatly to the growth in the number of offshore companies over the last ten years. Companies can make use of Malaysia's more than 60 double tax treaties (DTAs), of which around 50 are in force, and the island has become the preferred conduit for FDI into a number of local countries including Korea and Malaysia itself.
Labuan claims it is virtually the only offshore supermarket in the vicinity of the rapidly expanding economies of Asia which offers comprehensive and integrated offshore financial services and products. Commentators say that Labuan IOFC will attract a substantial flow of funds from the region in the years ahead as the operating cost in Labuan is substantially cheaper than other financial centres in the region.
Current Features & Benefits
- Labuan plays an effective role in the development of the economies of ASEAN countries
- All offshore business transactions attract no stamp duty and capital gains are not subject to any form of tax
- Not subject to Malaysian exchange controls
- Malaysia enjoys tariff reductions in ASEAN Free Trade Area (AFTA) and more than 60 DTAs have been signed
| General Information | |
|
Stability of Jurisdiction |
Good |
|
Legal System |
Common Law |
|
Type of Company |
Offshore |
| Company Information | |
| Bearer Share | No |
|
Standard Authorised Capital / Shares |
US$10,000 |
|
Chinese Name Permitted |
No |
| Official Bilingual M&A | No |
| Local Requirements | |
|
Minimum Number of Shareholders |
1 |
|
Minimum Number of Directors |
1 |
|
Company Secretary |
Yes (a) |
| President & Treasurer | Optional |
| Beneficial Owners | No |
| Public Filings | |
|
Shareholders |
Yes |
|
Directors |
Yes |
|
Company Secretary |
N/A |
| Other | |
|
Registered Agent / Resident Agent |
Yes |
|
Registered Office |
Yes |
|
Annual Return / Accounts Filing |
Yes / Optional |
|
Corporate Tax |
3% or RM20,000 |
|
Change of Domicile Permitted |
Yes |
| Shelf Companies Available | No |
|
Notes: |
|
| (a) |
Resident company secretary required |