What is Labuan company tax rate?

3% of Audited Net Profit for trading activities.No tax for Non-Trading activities.

Does Malaysia have any double tax agreements in place

Yes, the country has signed double tax agreements with 65 countries.

Can a Malaysian incorporate a Labuan company?

Both Malaysian or Non Malaysian can be the director & beneficiary of a labuan company.

Is there any requirement to file account for Labuan company?

Only for licensed companies and companies electing to pay 3% tax.Nevertheless, there is still a requirement to keep accounts that will sufficiently show the financial position of the company. With increased compliance, it is common that most companies will be required to prepare at least management accountsRead more: Labuan offshore company Labuan, Malaysia Merchant Account

Do I need to be in Malaysia to set up a Malaysian company?

No, you do not need to be physically present in Malaysia to set up a Malaysian company. Malaysia allows foreign individuals and entities to establish businesses in the country, and the process can be initiated from abroad. Here are the general steps to set up a Malaysian company as a foreigner:

Choose the Business Structure: Decide on the type of company structure you want to establish, such as a private limited company (Sendirian Berhad or Sdn Bhd).
Reserve a Company Name: Check and reserve a unique company name through the Companies Commission of Malaysia (SSM) online portal.
Appoint Directors and Shareholders: Identify the directors and shareholders for your company. At least one director must be a resident of Malaysia.
Register the Company: You can engage a company secretary in Malaysia to help you with the registration process. They will assist in preparing the necessary documents and filing them with SSM.
Minimum Paid-Up Capital: Ensure that the company meets the minimum paid-up capital requirements, which can vary depending on the business activities.
Registered Office: You will need to provide a registered office address in Malaysia.
Apply for Necessary Licenses: Depending on your business type, you may need specific licenses or permits. Check with relevant authorities to ensure compliance.
Bank Account: Open a company bank account in Malaysia to handle financial transactions.
Taxation: Register your company for taxation with the Inland Revenue Board of Malaysia (LHDN).
Compliance: Comply with annual filing and reporting requirements, such as the submission of annual returns and financial statements.

While you can start the process from abroad, you may need to visit Malaysia for certain steps, like opening a bank account, meeting with local authorities, or signing certain legal documents. Additionally, having a resident director is a requirement for most company structures, but there are services available that can provide a nominee director if needed.

It's highly advisable to seek legal and professional assistance, such as engaging a company secretary or a business consultant in Malaysia, to ensure that you follow all the necessary procedures and meet the legal requirements. Laws and regulations may change, so it's essential to stay up to date with the latest information when starting a business in Malaysia.

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