Investors with creative business ideas can look towards starting a company in Asia, in one of the low tax jurisdictions – Labuan (Malaysia). Incorporating a business in a low tax jurisdiction has a number of key advantages, especially for start-ups and smaller companies.
Malaysia can be an ideal location for a new business in Asia. Company formation in Labuan is straightforward and investors enjoy all of the benefits of an established offshore jurisdiction. Another attractive low-tax jurisdiction very suitable for starting an offshore company is Belize.
Company formation in Labuan
Foreign ownership is permitted in Malaysia and entrepreneurs from other jurisdictions can own 100% of their new company in Labuan. There is no need to form a partnership with a Malay resident and there are no requirements for company directors to hold a residence permit. The Labuan international company is a type of legal entity that allows investors to trade both locally and internationally and offers the 100% foreign ownership advantage. This business structure is considered a simple one: it has very low paid-up capital requirements and it can be incorporated by one director and one shareholder (who can be one and the same).
The entire company formation process in Labuan will last approximately two weeks and it can also be accomplished even if the foreign company founder cannot be present in Malaysia during the entire procedure.
Investors who start their new creative business in a low-tax jurisdiction like Labuan must apply for a multiple-entry work visa as soon as their company is incorporated.
Business taxation in Labuan
Labuan is a low-tax jurisdiction and the taxation regime here is advantageous as there is no value added tax, no stamp duty or sales tax and there are no custom duties. The taxation regime in Labuan does not include a withholding tax on dividends and interest. Investors can open a bank account in Malaysia in the local currency or any other currency of choice.
Company formation in Labuan is attractive for foreign investors because there are no mandatory requirements for directors to be Malay residents and there are no restrictions or limits on the percentage of foreign ownership. Malaysia can be a great place to enact a creative business idea, with low costs for company formation and an investor-friendly regime.