Compliance for Labuan International Company
Like all other companies in Malaysia, all Labuan companies also required to perform regular compliance to maintain the active status at all times. We will assist you to comply annually with three (3) major authorities for your Labuan Company as follows:
- Update your profile with Labuan FSA for all your Labuan Company statutory records with payment updated
- Update your company and personal profile and tax filing with Labuan Inland Revenue Board
- Update your company and personal profile with Labuan Immigration Department if your Labuan Company has issued working visas to your Directors or Expatriates.
It is also advisable to operate your company bank account well in order to comply with Malaysia banking rules and regulations. Bankers reserve the right to have your account blacklist or closed the account especially when your checking account issued unhonoured cheques.
Compliance for Labuan International Company – The Difference between Management Account and Audited Account
Management and Audit Account comprises of full set of financial report of Trading, Profit & Loss and Balance Sheet. Accounts which not being audited, it will be called Management account. For compliance, you are required to submit to us the company accounts based on your activities declared for your financial year ended every 31st Dec as follows:
1. For trading companies that did not elect flat tax of RM20,000, their account to be audited. The auditing is required disregards of the company who made profit or loss during the year. To start the audit process, we need to appoint the auditor which you have selected from the list of Labuan approved auditors. Please allow 30 to 45 days for the auditor to complete the auditing process. Auditor will submit to us a copy of the audit report along with tax documents to submit the Labuan Inland Revenue Board and Labuan FSA.
2. For trading company elected to pay flat tax of RM20,000, the yearly account to be submitted to us will be management account, no submission to Inland Revenue Department and Labuan FSA is required.
3. For company that is dormant or an investment holding in business nature, only management account will be submitted us, no submission to Inland Revenue Department and Labuan FSA is required. Click here to understand what needed to be done for compliance for Labuan dormant company.
Non-compliance can cause these events to happen:
1. Labuan Financial Authority may query and/or strike-off your Labuan company if the company records not updated or annual fee not paid
2. Labuan work permit visa holder and family may faced auto-termination at the Immigration check-points at KLIA, all other airports and ground immigration checkpoints
3. For reactivation of the struck off company, Labuan FSA reserves the sole discretion for approval. Penalty will be charged accordingly with the possibility blacklisting the name of all members in the company depends on type of offense.
Feel free to contact us at firstname.lastname@example.org to assist you on all compliance issues and clarifications for your Labuan Company. We “simplify the complexities”.
Decided to set up a Labuan company, feel free to drop us an enquiry today!