Why Labuan Offshore Company is Better Than Other Jurisdiction
Many businesses today are constantly looking for places where they can set up their business entities to be more competitive and more efficient in their fund placement, better financial control, and better asset protection management. This is understandable because the migration of funds from high-tax bracket countries to low tax-bracket countries increases the global economic benefits of certain regions, plus in the lower tax rate increases the individual’s incentives to work, save and invest.
Businesses are competing on a global stage every day. They need to have more efficiency in resource allocation and taxes. So there is a huge amount of money being migrated from high tax bracket countries to low tax bracket countries. What are the factors that determine which low tax regions to move to? A more basic question is how did this low tax territory come about?
If you own a business and you want to explore which low tax territory is better to move your business entity to, it is time to explore your option in Labuan.
Why Labuan Offshore Companies is Better Than Other Jurisdiction – Factors that determine a good low tax territory:
- Will you get a Visa to stay within the territory and or stay in that country?
- Is there currency restrictions in place and are there banking corporations within the territories that you can efficiently move your money around?
- How many trips you need to make to incorporate the business entity and how many trips you need to make to maintain the companies in the low tax territories.
Operations within A Tax Haven
- Are there a low of operations restrictions such as the management office has to be located within the territory or can they be located elsewhere in bigger cities for better lifestyles need.
The Efficiency of Tax Treaties
- How many tax treaties that the host country has obtained such that you can take advantage of the legal tax advantages.
Mr Tov Assogbavi (Laurentian University, Canada) and Mr Sébastien Azondékon (Université du Québec, Canada) did a formal studies on how to select a tax haven (low tax territories) published their findings in “Tax Havens: Toward An Optimal Selection Approach Based On Multicriteria Analysis”. They create a comparison model to evaluate all the factors above and table below is one of the results of their analysis published in International [Extracted from Business & Economics Research Journal – November 2008]
The clear winner is Labuan, Malaysia! It has scored high in 2008 and since then Labuan International Financial Centre has made further big steps as follows:
- 2014-Labuan IBFC is the winner for Islamic Finance Offering
- Current-LBIFC attracted insurance, 140 foundations, 55 bankers and 300 leasing entities
- 2013-Hong Kong Stock Exchange recognised Labuan Companies for its listing rules
- 2012-Labuan FSA becomes an IOSCO MMOU Signatory
- 2012-Labuan FSA has set-up Representative Office in Hong Kong
- 2012-Labuan FSA positions itself as Asia Pacific’s Wealth Islamic Centre
Who needs Labuan Company?
- People who want to do business in Asia Pacific rim of 630 million populations!
- People who want wealth protection from an estate war or a messy divorce!
- People who want low tax advantage double tax treaties Malaysia with more than 70 countries!
- People who want the legitimate jurisdiction, closer to their home in Asia to own businesses!
- People who want their business to be protected from a sudden political change in their own countries!
- People who want to do commodity trading in the international and Malaysia arena and be licensed!
- People who want to stay in Malaysia with their family to enjoy the low cost of living and stability!
- Shipowners who want to enjoy low tax advantages!
- Financial people exploring opportunities in banking, leasing, factoring and money brokers!
- Insurance and reinsurance brokers offering their services in the region!
- Fund managers who want to be licensed to manage private equity funds for clients in the region!
- People who want to expand their Islamic finance and banking activities worldwide!
Labuan jurisdiction is being conceived with the concept of the “mid-shore” jurisdiction that provides a half-way point between onshore and offshore, also to promote greater tax transparency, a strong legal system, and a justified tax framework. Labuan has repositioned itself to reflect its enhanced supervisory framework and compliance with international offshore standards and best practices.
Tricor’s ‘One Labuan Platform’ for your convenience to subscribe to all services in one stop to simplify your investment in Labuan from day one!
Drop us an inquiry form for the advice of the right Labuan entity for you to meet your objectives. Alternatively, call us at +603-2783 9191 (Labuan Division) for a face to face meeting at our Kuala Lumpur office.
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