Registering an offshore company in Malaysia is quite beneficial from a tax point of view, which is why international entrepreneurs direct their attention to this form of business. Labuan is a representative destination for offshore companies in Malaysia. As for the incorporation of such structures, foreigners can benefit from complete support offered by our company formation agents in Malaysia with experience in this field. We present to you the main steps of offshore companies and incorporation in Malaysia.
| Quick Facts | |
|---|---|
| Main advantages of the offshore company in Malaysia | – excellent from a taxation point of view, – fast incorporation, – low maintenance costs, – confidentiality |
| What is IBC? | Offshore companies in Malaysia are known as International Business Company or IBC. |
| Region that suits best for registration of an IBC | Labuan |
| Best use for an IBC in Malaysia | International trading |
| Formalities to register an offshore company or IBC in Malaysia | – preparation of Articles of Association, – tax registration, – bank account |
| Minimum share capital | USD 1 |
| Time frame to register an IBC in Malaysia | Around 6 weeks |
| Government approval for offshore company in Malaysia (YES/NO) | No |
| Resident director required (YES/NO) | No |
| Required local bank account (YES/NO) | No |
| Corporate tax rate for IBC in Malaysia | 3% |
| We provide support for company incorporation in Malaysia (YES/NO) | Yes |
| Support for immigration matters | Foreigners who want to start a company in Malaysia can benefit from legal advice from our law office in Malaysia in matters of immigration. |
| Support for tax registration of offshore companies in Malaysia (YES/NO) | Yes |
| We offer free case evaluation | Yes, before you open a company in Malaysia. |
Table of Contents
An offshore company can be established in specific financial centers, in this case, Labuan being a good option in Malaysia. Also known as IBC or International Business Company, offshore companies can have activities in Malaysia, but registering profits outside the country’s borders. An offshore company presents a series of benefits, among which, those related to taxation are the most important. You can find extra details in the following infographic:
With the help of our company formation agents in Malaysia, the registration of an offshore company gets simplified. Thus, there are several aspects one should consider when dealing with this type of business structure, such as:
Because the registration of an offshore company in Malaysia might seem complex to foreign investors, it is best to have a prepared team to handle all the requirements. This is where our company incorporation agents in Malaysia can provide the needed support.
Labuan is a solid offshore company jurisdiction for many years due to a wide range of great facilities and advantages, among which, independence. The location, the permissive legislation, the possibility of having 100% ownership, a corporate tax rate of 3%, plus varied tax exemptions for different kinds of activities are other significant benefits offered to international players.
There are no audit requirements for investment holding companies, and many economic operations do not require business licenses. Moreover, the protection of the double taxation treaties signed by Malaysia and the possibility of using different currencies in Labuan are other important aspects highly appreciated by businessmen interested in offshore companies in this country.
Non-trading offshore companies in Malaysia do not need to pay taxes. There are no capital gains taxes, sales tax, stamp duties, and customs tax. Plus, there is no personal taxation imposed on salaries of non-resident directors of offshore companies in Malaysia. Offshore trading companies established in Labuan are subject to a corporate income tax of 3% or an annual fee of RM 20,000.
In terms of investments in Malaysia, the country is a great business destination for international entrepreneurs interested in making profits in varied sectors of interest. The economic direction of Malaysia is appealing to foreigners and it is highlighted by the following facts and figures:
Interested in more details about offshore companies in Malaysia? We invite you to get in touch with our company formation specialists in Malaysia and ask for information and support.
