A Guide To Offshore Company Incorporation In Malaysia
If you are looking to expand your trading business across the Asia and Asia-Pacific zone, then offshore company incorporation in Malaysia is an excellent option. Labuan Malaysia is a lucrative destination for setting up an offshore company due to its multiple benefits. It offers higher tax efficiency and simple business administration. The regulations are business-friendly and it offers global investment opportunities to the investors. But, most of the investors face problems while complying with the formalities and procedures of company formation. They lack the knowledge of Malaysian jurisdiction. Hence, it is always better to start the process of incorporation with hiring a reputed investment consultancy.
Minimum Requirements for Incorporation of an Offshore Company in Malaysia:
The establishment of an offshore company in Malaysia is subject to the regulations specified in the LABUAN COMPANIES ACT 1990. This act has laid down some minimum requirements to be fulfilled by every applicant company. It includes the number of shareholders that should be minimum one individual or a corporate body. An annual fee should be paid for the renewal of company registration. This amount is payable every year 30 days after the anniversary of incorporation. The minimum number of directors should be one, either individual or corporate, Malaysian resident or non-resident.
Completion of the Documentation:
There are certain mandatory documents to be submitted before incorporating a company in Labuan. These documents are specified according to the structure of the company and they must be approved by the concerned authorities. They include Memorandum and Articles of Association, Statutory Declaration of Compliance, and Consent to Act as a Director form. The directors must provide the certified copies of their identity as well.
Setting up a Registered Office:
Under the LABUAN COMPANIES ACT 1990, the applicant company must take the services of a Trust Company incorporated under the Companies Act 1965. Trust company should also be registered under Labuan Trust Companies Act 1990. It provides essential services like setting a registered office in Labuan and secretarial services for the newly-incorporated offshore company. Physical offices are mandatory for companies working in the sectors like insurance, financial broking, and banking. Marketing offices can be set up in Kuala Lumpur and Iskandar Malaysia while management offices only in Labuan.
Audit and Taxation:
An audit of a Malaysian offshore company should be done by an approved auditor and the accounting records must be maintained in Labuan. These companies are subjected to corporate profits tax levied at 3% on its assessable net profits provided in the audited accounting reports. This tax is payable only by the trading companies. Non-trading companies are not subjected to this taxation. They are required to submit only a statutory declaration of their income.
Duration of Incorporation Process:
It primarily depends on the time taken to comply with all the requirements and legalities. After completing the background checks, it takes 3-5 working days to complete the process of incorporation.
These are the requisites and procedures of offshore company incorporation in Malaysia. You can take help of the professionals to streamline this entire process.
Resource Box:
If you want to know about Offshore Company Registration Process In Malaysia, the author of this article recommends My-offshore.com.
Minimum Requirements for Incorporation of an Offshore Company in Malaysia:
The establishment of an offshore company in Malaysia is subject to the regulations specified in the LABUAN COMPANIES ACT 1990. This act has laid down some minimum requirements to be fulfilled by every applicant company. It includes the number of shareholders that should be minimum one individual or a corporate body. An annual fee should be paid for the renewal of company registration. This amount is payable every year 30 days after the anniversary of incorporation. The minimum number of directors should be one, either individual or corporate, Malaysian resident or non-resident.
Completion of the Documentation:
There are certain mandatory documents to be submitted before incorporating a company in Labuan. These documents are specified according to the structure of the company and they must be approved by the concerned authorities. They include Memorandum and Articles of Association, Statutory Declaration of Compliance, and Consent to Act as a Director form. The directors must provide the certified copies of their identity as well.
Setting up a Registered Office:
Under the LABUAN COMPANIES ACT 1990, the applicant company must take the services of a Trust Company incorporated under the Companies Act 1965. Trust company should also be registered under Labuan Trust Companies Act 1990. It provides essential services like setting a registered office in Labuan and secretarial services for the newly-incorporated offshore company. Physical offices are mandatory for companies working in the sectors like insurance, financial broking, and banking. Marketing offices can be set up in Kuala Lumpur and Iskandar Malaysia while management offices only in Labuan.
Audit and Taxation:
An audit of a Malaysian offshore company should be done by an approved auditor and the accounting records must be maintained in Labuan. These companies are subjected to corporate profits tax levied at 3% on its assessable net profits provided in the audited accounting reports. This tax is payable only by the trading companies. Non-trading companies are not subjected to this taxation. They are required to submit only a statutory declaration of their income.
Duration of Incorporation Process:
It primarily depends on the time taken to comply with all the requirements and legalities. After completing the background checks, it takes 3-5 working days to complete the process of incorporation.
These are the requisites and procedures of offshore company incorporation in Malaysia. You can take help of the professionals to streamline this entire process.
Resource Box:
If you want to know about Offshore Company Registration Process In Malaysia, the author of this article recommends My-offshore.com.
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