Labuan |
The Federal Territory
of Labuan comprises of seven small islands located off the northeast
coast of Borneo not far from Brunei. Labuan is a politically stable
part of Malaysia and responsibility for its administration falls directly
under the Prime Minister’s Department. In November 1989, the
Government of Malaysia declared Labuan an International Offshore Financial
Centre and in 1990 the Offshore Companies Act was enacted. The Malaysian
government has committed substantial resources to the development of
Labuan and as a result Labuan is fast becoming one the leading offshore
centres of Asia. It is located on the major shipping and air routes
of the Asian region. The combination of a well-developed financial
and professional infrastructure and an advanced economy make Labuan
an extremely attractive environment for the establishment of offshore
companies
Offshore Non-Trading
An Offshore Non
Trading company is governed by the Offshore Companies Act 1990. By
virtue of the Companies Act this corporate vehicle is offered total
confidentiality and anonymity. It may not carry on business with a
resident of Malaysia except as permitted by the offshore Banking Act
1990 and may not carry on the business of banking and insurance. A
non-trading offshore company can be used for holding investments or
property. There is no taxation where the company is only involved in
an offshore non-trading activity. Labuan has many tax treaties and
a non-trading company is not subject to any exchange or currency controls.