FAQ

Frequenly Ask Questions
What is the total costs for setting up a Labuan Company?

Noblehouse's incorporation costs is USD2,440 equivalent in foreign currency for a Labuan Company with an issued share capital of RM50,000 or less equivalent in foreign currency.

What if I need the issued share capital to be USD100,000 (i.e. between RM50,000 to RM1,000,000)? How much do I need to pay for the incorporation costs?

There will be an additional RM1,000 payable for the registration fees of the issued capital. The total incorporation costs shall be RM8,000 equivalent in foreign currency.

What if I need the issued share capital to be USD1,000,000 (i.e. above RM1,000,000)? How much do I need to pay for the incorporation costs?

The additional registration fees is RM4,000. The total incorporation costs shall be RM11,000 equivalent in foreign currency.

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

Minimum One - can be either be an individual or a corporate entity.

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

Minimum One - can be either be an individual or a corporate entity.

Can the director and shareholder be of the same person?

Yes

What is "ultimate beneficial owner"?

It is the actual person who owns the Labuan Company. It is Noblehouse's policy to obtain Know Your Customer due diligence documentation on the ultimate beneficial owner.

Will the information on ultimate beneficial owner be published or available to other party?

No, all details of the ultimate beneficial owner are strictly kept confidential by Noblehouse. The details are not open to the public.

How about the information on the Labuan Company?

Likewise, the details of the Labuan Company are not public records. All statutory lodgment made with the Labuan Financial Services Authority (Labuan FSA) are strictly confidential and may only be accessed upon presentation of written authorisation letter from the director, officer or shareholder of the Labuan Company.

Who can be a director or shareholder or ultimate beneficial owner of the Labuan Company?

Any person or corporate entity may be appointed as director as long as he/it is "fit and proper" and satisfy our due diligence requirement.

What is "fit and proper"?

Basically, it means that the person or corporate entity must be sound, not been adjudicated bankrupt, have not at any time been held liable in any civil suit for any fraud or misfeasance and have not at any time been convicted of any offense by any court in relation to his work, business and employment.

Can the Labuan Company issue share capital in Malaysian currency?

No, the share capital of the Labuan Company MUST be in foreign currency.

Can a Labuan Company transact business with Malaysian residents?

A Labuan Company is now allowed to do business with Malaysian residents subject to notification to Labuan FSA. However unless such business activity with the Malaysian residents falls under the ambit of the Labuan Business Activity Tax Act 1990, the income may be taxable under the local tax regime which is at 25% from Year of Assessment 2009. Every Labuan Company shall not carry on business in the Malaysian currency except for defraying its administrative and statutory expenses.

How do I incorporate a Labuan Company?

Simple - just complete Noblehouse's standard application form and furnish us with Know Your Customer due diligence documents as listed in our application form. Thereafter, forward the documents together with a copy of the bank remittance advice (once payment has been made into our bank account) to us for our necessary action.

How long does it takes to incorporate a Labuan Company?

Subject to satisfactory due diligence documents provided, the Labuan Company may be incorporated within two or three working days.

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

No, but Noblehouse would be very pleased to meet you in person.

Does Noblehouse assist to open bank account?

Definitely. Noblehouse also provides the services of bank signatories provided our terms and conditions are satisfied.

Does the Labuan Company need to appoint an auditor?

The appointment of an auditor is optional and dependent on whether the Company elects to pay tax at 3% of the net audited profit. If the Labuan Company is a licensed entity registered with Labuan FSA, then it is mandatory for the Labuan Company to have its accounts audited. A Labuan Company carrying on an offshore trading activity will need to appoint an auditor if it elects to pay 3% of the net audited profits for taxation purposes.

Does the Labuan Company need to appoint Noblehouse as Tax Agent?

It is strongly recommended, as every Labuan Company is obliged to report its tax position with the Inland Revenue Board within three months from the commencement of a year of assessment. If Noblehouse is not the tax agent, you are required to furnish us details of your tax agent and copies of the filed tax document for our records.

Must a Labuan Company prepare financial statements?

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

What is Annual return?

It is a form which contains all the corporate details of the Labuan Company (i.e. director, shareholder, secretary, share capital, etc) which is required to be lodged with Labuan FSA within 30 days before its anniversary date of incorporation. Noblehouse requires each customer to verify and confirm the accuracy of the details prior to lodgement.

Is it mandatory to appoint a Malaysian director?

Under the present legislation, there is no requirement for a Labuan Company to appoint a Malaysian local director.

Is it mandatory to appoint a Resident Director (i.e. Trust officer of a trust company)?

Under the present legislation, there is no requirement for a Labuan Compan to appoint a Resident Director.