To successfully incorporate your Labuan business, Fionza Consultants recommends following these key steps:
Step 1: Choose the Right Business Structure Our team of experts will assess your business model, needs, and objectives to suggest the most suitable structure. Labuan IBC, with its advantages of full foreign ownership and tax benefits, is often preferred by our international clients. We’ll also guide you on the optimal paid-up share capital, regulatory requirements, and the need for licenses, such as Fund Management License or Money Broking License. If additional economic substance requirements apply, we’ll assist in hiring local employees and securing a local office.
Step 2: Reserve Your Company Name After the initial checks, we’ll reserve a name for your company with the Labuan FSA, ensuring it’s not offensive or similar to existing names. Fionza Consultants will conduct a name check to minimize delays. The application fee is RM50 (US$12), and approval usually takes 24 hours, with the name reserved for 3 months.
Step 3: Prepare Supporting Documents Before setting up your company in Labuan, you’ll need to provide necessary KYC (Know Your Customer) documents, including director names and identification proof. Once we have all required documents, we’ll draft and notarize your company’s Memorandum and Articles of Association. Depending on business activity and structure, we’ll also draft articles of incorporation, a business plan, and other incorporation documents.
Step 4: File for Registration Now, you can proceed with incorporation. Submit your completed memorandum and articles of association along with the Labuan company registration fees of RM6,000 (US$2,000). Directors’ Declaration and Consent Letters indicating their willingness to take up appointments will also be required. With all documents and payments in order, this process can be completed in as quickly as 24 hours.
Step 5: Visa Application Fionza Consultants ensures your business remains compliant after incorporation. We’ll assist you in applying for the Labuan Company Work Permit, enabling you and your family to legally enter Malaysia and engage in business activities. Labuan Visa requirements are straightforward, requiring only a passport and a business plan. The minimum paid-up capital is affordable at US$1.
Step 6: Open a Corporate Bank Account Following registration, we’ll help you open a corporate bank account. We have established partnerships with reputable banks in Malaysia and worldwide. We’ll introduce your business to relationship managers and compliance teams. Typically, account opening takes about 4 weeks, often without the need for directors and shareholders to travel. If travel is required, our representative can accompany you. Alternatively, we can negotiate for a conference call or waiver with the banks. Once the account is established, we’ll send the internet banking token and access codes to your preferred address.
Step 7: Financial Reporting and Taxation Fionza Consultants ensures your company remains compliant with Labuan tax authorities, allowing you to enjoy the special Labuan offshore tax rate of 3%. We’ll timely prepare your financial statements, annual returns, and accounting records, filing them with relevant authorities and auditors. Annual filings and tax returns will be completed before government-mandated deadlines.
This step-by-step process, guided by Fionza Consultants, ensures a smooth and compliant Labuan business incorporation.
