Compliance For Labuan Trading and Investment Holding Companies

Like all other companies in Malaysia, all Labuan companies also required to perform regular compliance to maintain active status at all times. For any Labuan Company, we can assist you to comply with the three (3) major annual submissions to the Labuan authorities, and they are as follows:

  • Update your profile with Labuan FSA with all your Labuan Company statutory records. This update can be done after your have updated your annual fee payment status.
  • Update your company and personal profile and tax filing record with Labuan Inland Revenue Board, Malaysia.
  • Update your company and personal profile with Labuan Immigration Department, Malaysia, if your Labuan Company has issued working visas to your Directors or Expatriates.

 

We strongly advise all Labuan entities to update the above information so that your banking account operation will not be affected by outdated records. The reason is that Banks, in Malaysia, are required to keep tap of their clients’ company profiles and update them regularly in compliance with the Malaysia’s banking rules and regulations.

Bankers in Malaysia do reserve the right to have your account blacklisted or closed should they discover that your banking profiles are not updated promptly. Banks had often showed harsher response to those companies who had issued dishonoured cheques. Either way, your business operation will be affected and that is a serious disruption to your operation.

As long as these annual updating of records are done promptly, business owners can enjoy better operation efficiency without unnecessary disruptions.

Compliance Labuan Company – The Difference between Management Account and Audited Account

All Labuan Companies need to submit their business activities report or accounts to the Authority annually. In general, there are 2 types of reports to be submitted and they are

  • Management Account Report
  • Audited Account Report

 

Both reports usually comprise of a full set of the financial reports on Trading, Profit & Loss and Balance Sheet. While the Audited report needs to be Audited by an certified Auditor the Management account is prepared by the Management and it does not need to be audited. management accounting reports which had not been audited.

All Labuan business entities have their accounting year end on the 31st December every calendar year. The management and audit account reports that have to be submitted and declared to authority, shall be for financial year end as at 31 December. The deadline for submission is 31st March.

The cut off date for the accounts needed to be submitted and declared to Authority, for any financial year is 31st Dec. The report that a company needs to be submitted depends on the business activities as we explain below:

1. For trading companies, the submission shall include an audited account for every financial year. The auditing is required whether the company made a profit or loss during the year. To start the audit process, we can help you to appoint an auditor from the list of Labuan approved auditors. Please allow 30 to 60 days for the auditor to complete the auditing process. Auditor will submit to us a copy of the audit report along with the relevant tax documents to submit to the Labuan Inland Revenue Board and Labuan FSA.

2. For a dormant company or investment holding Labuan business companies, they only need to submit a management account report to us. No further submission to Inland Revenue Department and Labuan FSA is required. Click here to understand what needed to be done for compliance of a Labuan dormant company.

Non-compliance can cause the following events to happen:

1. Labuan Financial Authority may query and/or strike-off your Labuan company if the company records are not updated or annual fee is not paid promptly.

2. Labuan work permit visa holder and their family members may face auto-termination at the Immigration check-points at KLIA, all other airports and ground and sea immigration checkpoints.

3. To reactivate a struck off Labuan company, we can help to apply for reactivation. However, Labuan FSA has the sole discretion to grant any approval. Furthermore, the authority may levy one or more penalties to the company, which could include the possibility of blacklisting the names of all members of the company, depends on type and severity of offences.

Feel free to call us +603-2783 9191 (Labuan Division) for an appointment or email us at Tricor.klmo@my.tricorglobal.com 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 inquiry today!

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