Question 1

Can a foreigner become a director of a Labuan Company?

Accepted Answer

Yes, a foreigner can become a director of a Labuan Company so long the person satisfies the fit and proper person requirement.

Question 2

Can a Labuan Company carry on a business with a resident?

Accepted Answer

A Labuan Company may carry on a business with a resident subject to Labuan LFSA requirement.

Question 3

Can a Labuan Company carry on business in Ringgit Malaysia?

Accepted Answer

No. A Labuan Company shall not carry on business in Ringgit except: For defraying its administrative expenses and statutory expenses; Unless permitted under the Labuan Financial Services And Securities Act 2010 or the Labuan Islamic Financial Services And Securities Act 2010; In relation to the holding of investments in a domestic company; In relation to the holding of debt obligation by a Labuan Company or a foreign Labuan Company; or Payment in relation to its professional contact with persons specified in paragraph (6)(c).

Question 4

What is the minimum paid-up capital for a company?

Accepted Answer

The minimum paid-up capital is USD1 or its equivalent to any other currency.

Question 5

Can a foreigner apply for a work permit in Labuan?

Accepted Answer

A foreigner can apply for a work permit once he or she has incorporated a Labuan Company.

Question 6

What is the basic requirement to apply for a work permit?

Accepted Answer

The minimum paid-up share capital must be at least RM250,000 or its equivalent in any foreign currency. A minimum salary of RM10,000 per month or its equivalent in any foreign currency. The position held must be in top management, professional or technical expert capacity. The applicant should have corresponding competencies or relevant working experience related to the position applied. Required to provide an operational office in Labuan, or a marketing office in Kuala Lumpur or Iskandar Malaysia, or a co-located office. Required to provide a residential address in Labuan.

Question 7

Can BTL assist with the work permit application?

Accepted Answer

Yes. We can assist and facilitate the application to Labuan FSA and Immigration Labuan.

Question 8

Can a Labuan Company open an offshore bank account?

Accepted Answer

Yes, it is allowed and the jurisdiction to confer approval rests with the offshore banker. Labuan has more than 50 international bankers.

Question 9

What is the number of directors required to establish a Labuan Company?

Accepted Answer

Every Labuan Company shall have at least one director, who can be either an individual or a corporate entity.

Question 10

What is the number of shareholders required to establish a Labuan Company?

Accepted Answer

Minimum one shareholder — who can be either an individual or a corporate entity.

Question 11

Can the director and shareholder be the same person?

Accepted Answer

Yes.

Question 12

Can a third party obtain information on the Labuan Company?

Accepted Answer

All statutory lodgements made with the Labuan Financial Services Authority (Labuan FSA) are strictly confidential and may only be accessed upon presentation of a written authorisation letter from the director, authorised officer or shareholder of the Labuan Company.

Question 13

Can the Labuan company issue share capital in Malaysian currency?

Accepted Answer

The share capital of a Labuan Company must be in foreign currency.

Question 14

Can a Labuan company transact business with Malaysian residents?

Accepted Answer

Where a Labuan Company carries on a business with a resident, the Labuan Company shall notify the Authority of any transactions between the Labuan Company and the resident within ten working days of such transaction.

Question 15

How do I incorporate a Labuan Company?

Accepted Answer

Please contact us for more information. There are documentations required to be filled in.

Question 16

How long does it take to incorporate a Labuan Company?

Accepted Answer

A Labuan Company may be incorporated within 2 or 3 working days, provided all documentations are complete and in order.

Question 17

Do I need to be in Labuan physically to set up the Labuan Company?

Accepted Answer

Not necessarily, but Bank Islam Trust Company would be very pleased to meet you in person.

Question 18

Can BTL assist to open a bank account?

Accepted Answer

Definitely. Bank Islam Trust Company also provides the services of bank signatories provided our terms and conditions are satisfied.

Question 19

Does the Labuan Company need to appoint an auditor?

Accepted Answer

The appointment of an auditor is optional and depends on whether the company elects to pay tax at the rate of 3% of the net audited profit. A Labuan Company carrying on a trading activity is required to appoint an auditor if it elects to pay 3% of the net audited profits for taxation purposes.

Question 20

Must a Labuan Company prepare financial statements?

Accepted Answer

Yes, every Labuan Company is statutorily required to produce and maintain proper accounting and other records to sufficiently explain the transactions and financial position of the Labuan Company.

Answers to your Labuan questions.