Register Company in Labuan

• Tetra Consultants’ team of experts will first fully understand your unique business model, needs, and goals, before recommending the most optimal business structure for you. Labuan IBC tends to be most ideal and popular with our foreign clients since it offers full foreign ownership and tax benefits.
• Tetra Consultants will also 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.
• The company’s application must be sent through a licensed Labuan trust company. This company will also conduct the first layer of due diligence checks. Tetra Consultants is experienced in operating in the Labuan region, and will ensure you have a smooth and hassle-free experience.

• Once the checks have been passed, we will proceed to reserve a name for your company with the Labuan FSA. The name should not be offensive or similar to an existing name. Tetra Consultants will do a name check for you as to ensure minimal delays in the process. The application fee will be RM50 (US$12), and approval is expected to take 24 hours. Thereafter, the name will be reserved for 3 months.

• Before Tetra Consultants can set up your company in UK, you are required to provide a list of required KYC documents. Some of these documents include the names of directors and identification proof.
• Upon receiving all the necessary documents, Tetra Consultants will proceed to draft and notarize the company’s Memorandum and Articles of Association.
• According to the business activity and company structure, Tetra Consultants will also draft articles of incorporation, business plan and other incorporation documents.

• Thereafter, firms may proceed with incorporation. Firms will need to submit their completed memorandum and articles of association along the Labuan company registration fees of RM6,000 (US$2,000). The Directors’ Declaration and Consent Letters signifying their willingness to take up appointment will also be needed.
• If all documents and payments are in order, the process can be completed in as quickly as 24 hours.

• Tetra Consultants is also committed to helping your business stay compliant after the incorporation process and will help you to do the necessary so that your business may operate legally.
• We will help you to apply for the Labuan Company Work Permit which will allow you and your family to enter Malaysia, and more importantly for you to be able to perform business activities legally since foreigners with a tourist visa are not allowed to do so.
• The Labuan Visa requirements are easy to fulfil as it only requires a passport and a business plan. The minimum paid-up capital is also very cheap at US$1. First-time visitors are also required to stamp their passports with the immigration department in Labuan to endorse their visa.

• After registration, Tetra Consultants will assist you in opening a corporate bank account. Our team has established partnerships with multiple reputable banks in both Malaysia and globally. We will present your business to each relationship manager and compliance team.
• Typically, the account opening will take roughly 4 weeks. In most cases, the directors and shareholders are not required to travel. However, if travel is required, we will have a representative accompany you to the bank meeting. Alternatively, our team will negotiate with the banks to conduct a conference call instead or to request a waiver.
• Once your account has been successfully opened, Tetra Consultants will courier the internet banking token and access codes to your preferred address.

• Tetra Consultants will timely prepare your firm’s financial statements, annual returns and accounting records and file them with the relevant authorities and auditors to ensure your company remains compliant to the Labuan tax authority, and consequently enjoy the special Labuan offshore tax rate of 3%. Annual filings and tax returns will be timely completed before the stipulated deadlines set out by the government.

Why do companies incorporate in Labuan?

The Malaysian government highly values foreign direct investments and has provided foreign investors with a business-friendly environment in Labuan. The nation lays out numerous attractive benefits of doing business in Labuan to facilitate and ease the integration of international business owners into the country’s economy. Tetra Consultants will address any queries you have at any point in time during the process to register company in Labuan. Additionally, we adopt a PESTLE framework to help you comprehensively analyse the feasibility and practicality of setting up a business in the Labuan.

Political

• According to the Corruption Perceptions Index (CPI) published by the Transparency International Organisation, Malaysia ranked 57^thout of the 198 countries evaluated. The CPI is the leading global indicator of public sector corruption. Malaysia’s favourable ranking implies a lower risk of corruptive activities in the nation’s public sector which boosts an investor’s confidence in the political stability of the country.
• Malaysia maintains a stable and healthy political relationship with its neighbouring countries. With the help of the nation’s ASEAN membership, it has opened up a wide array of regional business opportunities for Labuan due to high market exposure across multiple countries in the region. As such, Labuan has become one of the most popular jurisdictions for foreign investments. The government’s positive political ties with neighbouring countries provide business confidence and assurance to foreign investors.
• Malaysia establishes global diplomacy relationships with several nations and is a member of the United Nations and World Trade Organisation (WTO). Furthermore, the nation’s healthy diplomatic relations led to Free Trade Agreements, facilitating Labuan’s business access to international markets and hence opening up numerous business opportunities.

Economic

• Companies in Labuan are subjected to significantly lower corporate tax rates in comparison to the global average. The corporate tax rate applicable to Labuan companies is 3% on chargeable annual audited net income derived from Labuan trading activities.
• Additionally, companies involved in non-trading business activities are not subjected to any corporate tax, which is exponentially lower in comparison to the Worldwide Average Statutory Corporate Income Tax Rate of approximately 24%, measured across 176 jurisdictions.
• With reference to the Global Competitiveness Report published by the World Economic Forum, Malaysia ranked 27^th out of 141 countries listed. Malaysia’s satisfactory performance on the Global Competitiveness Index illustrates the country’s adequate productivity in utilising its available resources to ensure sustainable economic prosperity.
• In accordance with the International Monetary Fund (IMF) 2021 estimates, Malaysia ranked 37^th out of 186 countries in terms of nominal Gross Domestic Product (GDP). Malaysia’s favourable ranking creates positive sentiments about the nation’s economy.

Social

• According to the EF English Proficiency Index, Malaysia has a high proficiency in English. Malaysia ranked 30^thout of the 100 countries listed under the EF English Proficiency Index. Furthermore, Malaysia is 3^rd in terms of English proficiency in Asia. Despite the nation’s remarkable performance on the EP English Proficiency Index, Malay is one of the official languages in Malaysia. If required, Tetra Consultants will arrange for a translation service conducted by a certified translator.
• Malaysia has a population size of approximately 31.95 million, with an average labour participation rate of 69% according to the World Bank. As such, foreign investors will gain access to a sizeable and inexpensive labour force.
• In accordance with The World Bank, Malaysia has an extensive and vast population size of approximately 31.95 million. The immense nature of the nation’s overall population grants business owners with access to a robust domestic market.

Technological

• In accordance with the United Nations Conference on Trade and Development (UNCTAD), Malaysia ranked 5^th amongst the top 10 developing countries in Asia in terms of digital readiness. Furthermore, Malaysia has seen an improvement in its global ranking from 39th place to 34th.
• In hopes to digitalise the nation’s economy, the government has provided a wide array of government funding schemes for Small Medium Enterprises (SMEs) and Start-ups in Malaysia. The Malaysian Technology Development Corporation (MTDC) has been the primary player in technology commercialization in Malaysia, promoting the adoption of technologies by local corporate entities.
• There are several established start-up incubators in Malaysia. As such, foreign investors will be provided with business opportunities to integrate seamlessly and grow nationally in the Tech business sector. An example would be 1337 Ventures, a technology incubator to provide a conducive business environment, facilitating growth and innovation for tech firms in Malaysia.

Legal

• According to the latest annual ratings issued by the World Bank, Malaysia is ranked 12^thworldwide in terms of the jurisdiction’s ease of doing business. The nation’s exemplary ease of doing business ranking exhibits Malaysia’s highly conducive regulatory environment for business activities.
• Malaysia’s Free Trade Agreements grants corporate entities in Labuan access to foreign markets, facilitating the increase in trade volume with partner countries. The expansion of Labuan trade volume creates business opportunities for foreign investors.
• Labuan IBFC is bound by an effective regulatory regime that subscribes to internationally-recognized standards and best practices in financial services and prudential regulation.
• Labuan has a wide variety of licenses for different financial businesses. Some of these licenses include money broking license, insurance license, commodity trading license and baking license.

Environmental

• Malaysia ranked 75^thout of the 180 countries assessed on the Environmental Performance Index (EPI). The nation’s less than favourable ranking highlights Malaysia’s adequate proficiency in addressing the environmental challenges that it faces. There is sufficient understanding of the detriments of environmental progress in Malaysia
• Just recently, Malaysia’s Department of Environment released a National Policy on the policy seeks to work towards continuous economic, social and cultural progress and enhancement of the quality of life of Malaysians through environmentally sound and sustainable development.

Contact us to find out more about how to set up business in Labuan. Our team of experts will revert within the next 24 hours.

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