Compliance for Labuan Dormant Company

A dormant company in Labuan is a company that has been set up, but for some reasons, there is no transactions done during (a full or part of) a financial year. All dormant companies in Labuan,  are required to comply with the requirements of the Labuan FSA and Labuan Inland Revenue Board (IRB) annually. 

To find out if any Labuan company is dormant, here are some guidelines with greater clarity. A Labuan company is deemed as having a dormant status if the company has not committed to the following transactions since the date of incorporation:

  1. Sales or revenue
  2. Employment of Staffs
  3. Other expenses incurred except company incorporation, the annual fee payable to Company Secretarial and Labuan FSA

Documents requirements for a Dormant Company in Labuan

The annual compliance for Labuan Dormant Company would include the followings:

  1. Submission of Yearly Annual Return (Form 27) – This form is to update Labuan FSA’s latest information of the company, members, directors, and directors. The deadline for this submission is ONE month before the anniversary of your Incorporation Date.
  2. Submission of Corporate Tax Filing (LE) – to submit your tax return to IRB or management account to us as your Company Secretary. The dateline for submission of Labuan corporate tax status is by 31/3 in any year. For companies, who needs more time for this submission, you can apply for extension till up to 31/5, through us as your Company Secretary. The granting of approval shall be subjected to case by case basis.
  3. Submission of Employer Return (E) – to update IRB yearly on employee name list and payout. The deadline for this submission is on the 31st of March every year.
  4. No requirement for auditing financial accounts. A company with a dormant status, shall not need to have their financial accounts audited.

What are the option available for a dormant company in Labuan?

A dormant company upon completing the above annual compliance to Labuan FSA and Labuan Inland Revenue Board (IRB), can continue to remain dormant or  resume it’s business as normal without fear of being struck off. This company will continue to enjoy the benefits of a Labuan companies such as low tax rate of 3% and it’s holding structure shall remain unchanged.

The other option available to a dormant company in Labuan is to formally close the company all together. If the management intends to close their company, we have prepared some information in the links below to help you get a better understanding on the way to close your Labuan business entity. These information shall give you a better  understanding of the type of dissolution option available to you, it’s procedures, and more importantly the datelines for your closure. 

Way to Dissolve Your Labuan Company
Labuan Company Strike Off Procedure 

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