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Home » Ways to Maintain Your Labuan International Company

Ways to Maintain Your Labuan Company- Importance Compliance

Labuan International Company

To keep your (two) 2 years’ Work Visa active status, you are advised to pay promptly the annual fee charged by Labuan Financial Services Authority (www.labuanibfc.com) with necessary compliance align with your Business Activities.

These events may happen to you:

1. Your company may be strike-off from the Registrar Company of Labuan Authority if you fail to pay the annual filing fee USD 900 

2. Your (two) 2-years’ Work Visa may face auto-termination at the Immigration check-points at KLIA once your Labuan International Company was struck-off

3. For re-activation of the Labuan Company application, Labuan Financial Services Authority reserves the sole discretion for approval. A penalty will be charged with the possibility blacklisting the name of all members of the company.

Recently many foreigners faced problems in setting up Malaysia Sdn Bhd company in Malaysia! Find out more!

Ways to Maintain Your Labuan International Company- Cost  Guidance

  • Annual fee charged By Labuan Financial Services Authority – USD 900 annually
  • Service Fee charged by Company Secretarial, including submission of Annual Return and Registered Office Address – USD 1,000 annually
  • Corporate Tax Filling to Income Tax Department – min. USD 150 annually
  • Individual Tax Filling to the Income Tax Department – min. USD 100 annually
  • Audit fee – payable to Auditor for accounts (if any)-Payable once a year of min. USD 600 (price varies depends on the transactions volume, the rule of thumb the audit fee usually is 0.1% of the sales turnover)

During the course of business, you may want to make changes where special Resolution will be required. The fee will be minimum USD 50 per resolution or assignment. This fee excludes all disbursements and fees payable to the relevant authorities (if any).

– Change of Directors
– Change of ShareholdersLabuan International Company-Support
– Change of Company Name
– Memorandum & Articles amendments
– Capital Increased/Allotment
– Lodgement of Bankers Guarantee
– Charge, Issuance of Prospectus
– Bonds & Preference Shares
– EGM (extra-ordinary meeting)

For your Bank Opening Account, you would require to purchase Company Information Letter from the Labuan Authority, each set cost USD 250 approx.

YEARLY MAINTENANCE COST COMPARISON BETWEEN MALAYSIA LOCAL COMPANY SDN BHD and LABUAN INTERNATIONAL COMPANY

Malaysia authorities encourage all foreigners who own companies in Malaysia to perform necessary compliance of rules and regulations to avoid any penalties and fine. To upkeep the company, the total estimated yearly fees payable for Malaysia Company (Sdn Bhd) and Labuan International company as follows :
 
Example fees payable for a Dormant (in-active) Status Company :
For Malaysian Company (Sdn Bhd): Secretarial Fee, Auditor Fee, and Tax Agent Fee: MYR4,000 to MYR5,000
For Labuan International Company : Labuan Authority and Secretarial fee : USD 2,000 @ 3.0 = MYR6,000

Ways to Maintain Your Labuan International Company: TAXATION
Labuan International Company Tax

Mainly, Labuan International companies are divided into two categories as follows:
1. Non-Trading Companies- investment holding for your assets such as equities, properties, valuable items, companies, etc
2. Trading Companies (trade internationally) on import and export, goods, consultancy, and advisory.
     [Read: More on Taxation and Compliance for Labuan International Company]

Basically, there are two types of tax to comply with the Inland Revenue Authority for Labuan International Company, namely Corporate Tax on your Company and Personal Tax if you or your employees do collect fees, bonus, dividend, etc from the company.

For Corporate Tax:

For (Non-Trading)Investment Holding companies- no tax and no audit is required.

For Trading companies – either 3% tax on net profit at end of each financial year @ 31 st December, with the account to be audited. Filing of Corporate Tax Return dateline by 31st March each year, extendable to 31st May (subject to Income Tax’s discretion).

Personal Income Tax for Directors and Employees as follows:

A. Non-taxable for all Income from Director’s fees received by a non-Malaysian citizen Director of a Labuan entity (YA 2011 to YA 2020). Income of a non-Malaysian citizen from exercising of an employment in a managerial capacity with a Labuan entity in Labuan, co-located office or marketing office is exempt to the extent of 50% of gross income from the employment (YA 2011 to YA 2020). 

B. Personal income tax return to be lodged to Income Tax Department is required yearly by April 30th. 

For Business Visa application under your Labuan International Company, the qualified expatriate must declare a minimum monthly remuneration of MYR10,000. Even though the salaries and fees are non-taxable, the yearly personal tax filling to the Inland Revenue Department is required. For more on Personal Tax for Labuan Expatriates, please click here!

The above are ways to maintain your Labuan International Company which recommended by us to ensure all compliance are dealt with. Talk to us if you need clarification, we are happy to assist you!

Feel free to contact us to find out if your business fits into the setting up of a Labuan International Company, how it can the benefit you and why it is
a preferred choice now! We, acting as your Independent Investment Consultant “simplify your investment“ in Malaysia! Send you your inquiry today!






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