Labuan Businesses
Empowering Global Business Growth with Labuan’s Strategic Tax Incentives and Business-Friendly Environment.
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About Labuan Incorporation
At AFZ Horizon, with authorizations from Allied Labuan, we specialize in providing comprehensive solutions for businesses looking to establish a presence in Labuan, Malaysia’s thriving International Business and Financial Centre (IBFC). Our mission is to empower entrepreneurs and investors with the knowledge and resources necessary to navigate the regulatory landscape and unlock the potential of Labuan’s business-friendly environment.
Incorporate Structre
Labuan Limited Partnership (LP)
A Labuan Limited Partnership (LP) is formed by two or more partners engaged in the joint management and operation of a business. It requires at least one general partner and one limited partner, with a maximum of 50 partners allowed. The general partner has full management control and is liable for the partnership’s debts, while the limited partner contributes capital and shares in profits without participating in daily operations.
Labuan Limited Liability Partnership (LLP)
A Labuan Limited Liability Partnership (LLP) consists of two or more partners who manage a business together. This structure offers limited liability akin to a corporation while providing the operational flexibility of a partnership. An LLP requires a minimum of two partners and protects personal assets from liabilities incurred by the partnership, with taxation applied at the entity level rather than at the partner level.
Protected Cell Companies
Overview of Protected Cell Companies (PCC)
A Protected Cell Company (PCC) can be incorporated as a Labuan company or converted from an existing Labuan company if authorized by its articles. A Labuan PCC is a limited liability company that can form cells, including a core cell for holding non-cell assets and any number of segregated cells to protect individual assets. Each cell operates independently under the Labuan PCC’s umbrella while maintaining legal separation.
Purpose of Labuan PCC
A Labuan PCC can be established for specific purposes, including Labuan Captive Insurance Business, Labuan Captive Takaful Business, Labuan Mutual Fund, and Labuan Islamic Mutual Fund. This structure allows for effective asset management and segregation, tailored to the diverse needs of various investors.
Capital Market
We provide Business Coach and Training services for all types Business problem and its solution.
Investors can establish mutual funds or issue securities through the Labuan International Business and Financial Centre (IBFC) to raise funds in the international market. Fund management companies offer administration and advisory services for investment activities, while securities licenses are available for companies dealing in securities and providing related advice. Under the Labuan Financial Services and Securities Act 2010, two types of funds can be established: private funds, which require written notification of their business scope to Labuan FSA along with an information memorandum, and public funds, whose securities are offered for subscription to the general public.
INTRODUCTION
Digital Financial Business
The number of digital financial services providers operating had more than doubled since allowed in 2018. This reflects the Centre strong potential to be a growing fintech hub within Asia commercial space.
100% foreign ownership
3% tax on net audited profit
No withholding tax
No withholding tax
No capital gains tax & inheritance tax
No import duty / sales / service tax
No tax on dividends to shareholders
No tax on dividends to shareholders
Accessibility to more than 70 Malaysia tax treaty partners
Eligible to apply for 2 years multiple-entry work permit to stay in Malaysia
100% tax exemption on director fees received by expatriate directors (if applicable, subject to current updates)
Fintech and Blockchain
Money Broking
Securities Token
Wealth Management
Labuan Trust
Labuan Foundation
Financial Licenses
Insurance in Labuan IBFC
Direct Insurance
Labuan General Insurance encompasses non-life insurance types, including accident, medical, surgical, and hospital expenses coverage. This segment provides essential protection for individuals and businesses, facilitating risk management.
Reinsurance
Labuan offers different types of reinsurance businesses, including Conventional Labuan Reinsurance and Islamic Labuan Retakaful. These services allow insurers to manage risk effectively and enhance their underwriting capacity.
Captive Insurance
Labuan Captive Insurance serves parent companies or related groups by providing risk-mitigation services and benefiting from underwriting profits. This model allows companies to tailor their insurance solutions to specific needs.
Insurance and Underwriting Managers
Labuan Insurance Managers offer managerial and administrative services to Labuan (re)insurers and captive owners. Similarly, Labuan Underwriting Managers provide essential underwriting and administrative support, ensuring compliance and operational efficiency.
Insurance Brokers
Labuan Insurance Brokers facilitate direct insurance and reinsurance arrangements, serving as intermediaries for insurers seeking such services. Their expertise helps clients navigate the complexities of the insurance market.
Banking in Labuan IBFC
Business-Friendly Banking Environment
Labuan IBFC offers an excellent platform for banks and financial companies seeking to expand in the region, featuring various types of banks, including commercial, investment, and digital banks, both conventional and Islamic. A notable advantage of Labuan is the allowance for 100% foreign ownership of these banks. Unlike the mainland banking system in Malaysia, which involves more complexity and requires local participation, Labuan provides a streamlined, business-friendly environment with a low 3% corporate tax rate for banking operations, making it an attractive option for international investors.
