Benefits of Labuan offshore company
Located off the coast of Borneo, Labuan has become a reputable free trade area and is attracting multinational companies from all over the world. Its low tax rate, pro-business regulation and strict compliance with international standards on transparency and due diligence are what has made it a preferred destination for international businesses seeking to expand their operations in Asia.
Incorporating a Labuan offshore company is simple and fast. Foreigners can own 100% of the company, without having to hire local partners. The required paid-up capital is as low as 1 USD.
A Labuan offshore company can be incorporated in just a few days. In addition, there are no withholding taxes on dividends, interest or royalties. Moreover, Labuan has close connections with Malaysia and access to its nearly seventy double taxation agreements with other countries.
Asset Protection and Asset Holding
Labuan companies enjoy significant asset protection by not being liable for any wrongful claims by third parties. Furthermore, their assets are not subject to any withholding taxes or audits, which can be beneficial for investors looking to protect their valuable assets from frivolous lawsuits and vengeful creditors.
Easy Banking for Foreigners
Opening a Labuan bank account is relatively easy, as it is in line with international banking standards. Many globally recognized banks have branches in Labuan, making it a convenient place for foreigners to set up an offshore company.
Reputable Business Environment and Legal System
The law system in Labuan is based on English Common Law, which provides foreigners with a level of trust and confidence that they cannot obtain elsewhere. In addition, the country is located in a region of Asia with a vibrant and thriving economy.