How to Set Up Offshore Bank Account for Labuan Company
It is now getting popular for many expatriates and Malaysians on choosing a bank and manage their finances using offshore principles. It is well worth exploring how banking offshore can save you money! Offshore banking works relatively simple and straightforward as opposed to many of the standard banking practices and services you would expect from a high street branch of onshore banking. How to Set Up Offshore Bank Account for Labuan Company is a guide especially for new entrepreneurs who are about to get started to own a Labuan entity. How to Set Up Offshore Bank Account for Labuan Company
Labuan offshore jurisdiction offers great choice and a wide range of bankers for your offshore banking needs. There are close to 55 top bankers currently operate in Labuan Financial Services Centre. An offshore bank account is meant for the transaction of money on a big scale on an international level. Most offshore banking transaction is done through a phone call, fax and email, internet banking is rare! Labuan offshore bank account bypasses Malaysia central bank scrutiny, however, they do subject to Labuan FSA regulatory compliance and possibility of Malaysia Ministry of Finance scrutiny. [Find Out: What is the tax benefit of a Labuan Company]
3 reasons why entrepreneurs prefer banking away home:
Your local account may be easily frozen due to your mishandling!
Secured and free from politically and social uncertainty in your country!
No capital flow control restriction!
With common reporting system (CRS) implemented by OECD, there will be no more privacy in terms of your fund size kept in the bank. It is a new norm now bankers would require all signatories and shareholders to provide their Income Tax Number for opening the bank account for their Labuan company.
The requirement to set-up an offshore bank account for Labuan Company often involve screening the company profile with a minimum of an initial deposit of per currency per account from USD 5,000 to USD50,000 required by the offshore bankers from Labuan, Singapore and other jurisdictions.
Key information of Labuan Off shore bank account:Most bankers offer all major foreign currencies!
Higher initial opening account amount ir USD5,000 to USD20,000 per currency!
Selected bankers may not required face to face meeting to open account
Due increased international compliance, may require more documents
Only selected bankers offer limited internet banking facilities
Most bankers offer Fixed Deposit placement with interest rates
Only current account with all remittance via TT
Most bankers able to offer trade facilities such as Banker Guarantee, LC, etc
Not subject to foreign exchange control by Central Bank of Malaysia
High level of privacy and data protection
Bankers can offer specialized or customised products/products/services
Deposit insurance protection are not available for all offshore bank accounts
The difference between Malaysia Onshore Bankers and Offshore Bankers
All Labuan Company are eligible to open both onshore as well offshore bank accounts in Malaysia. Onshore banking are bankers situated within Malaysia with retails outlets to serve you with ATM, Debit Cards as well as internet banking. All off-shore bankers are located in Labuan, where they operate to serve you from their management office. Most transactions are done thru emails or call in. Malaysia onshore bankers offers RM as well as foreign currencies with lower initial deposit, usually range from RM1,000 to RM5,000 for each currency account while off-shore bankers are allowed to operate in all foreign currencies except RM.
We offer customised service for opening the Labuan and other offshore bank account opening as follows:
- Banker profile match to recommend right offshore banker to meet your needs
- Verify all documents to meet bankers’ due diligence to facilitate the opening of an account
- Act as your liaison person with the banker and manage the opening of a bank account
- Arrange the opening of internet banking facilities.
Processing to open a bank account will be 3 to 4 weeks for approval. All offshore bankers have their own preference list of nationalities approve for the opening of a bank account for Labuan Company. The KYC compliance list varies from one bank another subject to their internal policies. Most high-risk jurisdiction and sanction list under the FATCA and OECD will be denied from account opening, check if you are one of them!
Feel free to speak to us about your banking needs, we are happy to assist you. We “simplify the complexities” for your banking needs! Call us at +603-2783 9191 or email: firstname.lastname@example.org. Send us your business objectives to advise the right Labuan entity to meet your goals!