How to incorporate Labuan company?

How to incorporate Labuan company as a foreigner

• Before you choose to incorporate a company in Labuan, Tetra Consultants advises you to read through the following comprehensive guide to fully understand the steps essential for successful incorporation. Requirements and regulations are stated clearly to help you fully understand the process of incorporating a company in Labuan.
• As a summary, you can incorporate a company in Labuan and open a Labuan corporate bank account within 6 weeks, depending on the type of entity established upon submission of the required due diligence documents. Our team of professionals will advise and ensure an accurate, seamless process.

Simply put, we can break down each engagement into four different phases:

1. Planning and Strategy
2. Incorporation
3. Corporate Bank account opening
4. Staying compliance

Planning and Strategy

• Tetra Consultants will assist you in the Labuan company incorporation procedure by adhering to the following steps below.
• Tetra Consultants will provide recommendations on the suitable type of entity catering to your business objectives and activities. Prior to the start of the engagement, Tetra Consultants will advise on the optimum paid-up share capital, regulatory requirements and whether there is a need for licenses for the intended business activity. Some popular licenses available in Labuan include Fund Management License and Money Broking License.
• If your company is subject to additional economic substance requirements, Tetra Consultants will assist you to recruit local employees and rent a local office space.
• Before the official business registration, Tetra Consultants will aid you with the preparation of the company’s legalised Articles of Incorporation and Written Resolution on decisions made by shareholders pertaining to the company’s set up, business scope and appointment of nominee director(s) if necessary.

Incorporation

Reservation of Business Trade Name

• Before Tetra Consultants registers your Labuan company, our team checks for the availability and reserves your preferred company name through an application made to the Labuan Financial Services Authority (LFSA). Our team of professional consultants will provide the department with a written document on the scope of your corporation’s intended business activities.
• The selected Trade Name should be unique, and it should not violate public ethics. For partnerships and corporations, Tetra Consultants will complete your business trade name registration. Upon receiving approval from the relevant authorities, the name will be reserved for a period of 3 months.

Articles of Association

• Tetra Consultants’ legal team will provide you a draft of the Article of Association, business plan, and other required legal documents. The Articles of Association should adhere to the list of relevant regulations and standards enforced by the Labuan Financial Services Authority (LFSA). The application form has to be filled with the following mandatory information:
  • Business Trade Name.
  • Company’s Address.
  • Outline and description of business activities to be carried out under company’s name.
  • Restrictions on the transfer of company’s shares.
  • Personal identification of each respective authorized shareholder and Director.
  • Methods of distribution of losses and profits between business partners.
  • Duration of Company’s business activities.

Business registration with the Labuan FSA

• Tetra Consultants will assist you in the submission of the following documents to the Labuan Financial Services Authority (LFSA):
  • Corporation’s Articles of Association
  • Personal particulars of company director
• On average, your company incorporation will be approved within 1 week upon submission. Once Tetra Consultants successfully incorporate Labuan company, we will send the original corporate documents to your preferred address.

Labuan Corporate Bank Account opening

• Assuming your business does not require any additional licenses in Labuan, Tetra Consultants will proceed to open a corporate bank account for your newly incorporated Labuan-based company depending on your business goals and objectives. You can leverage on our extensive banking network and expect to receive your account numbers within 4 weeks.
• Tetra Consultants will contact multiple Labuan banks and present your business to the respective relationship manager and compliance team. To name a few, Tetra Consultants works with Maybank, RHB, Hong Leong Bank and many more. If preferred, Tetra Consultants will contact reputable international banks to onboard your newly established company.
• Some Labuan banks will require the directors and shareholders and bank signatories to travel to the Labuan bank branch for a face-to-face interview. Tetra Consultants will negotiate with the bankers to use alternative methods such as video conference calls instead. In the event the traveling is a dealbreaker for the account opening, Tetra Consultants will accompany you to the bank meetings in Labuan.
• Following that, Tetra Consultants will courier the internet banking token and access codes to your preferred addresses.
• On average, the corporate bank account opening will take approximately 4 weeks after the company is registered. All in all, Tetra Consultants expects to complete the engagement within 6 weeks, assuming no additional licenses are required.

Staying compliant

• Tetra Consultants will timely prepare your firm’s financial statements, corporate tax returns and bookkeeping on your behalf. Annual filings and tax returns will be timely completed on your behalf before the stipulated deadlines set out by the government.
• If you plan to be physically present and working in Labuan, Tetra Consultants will advise on a suitable business visa and proceed ahead with the visa procurement for you.

Contact us to find out more about how to incorporate a company in Labuan. Our team of experts will revert within the next 24 hours.

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