If you are wondering as to which is the best country to set up an offshore company, it is undoubtedly Malaysia. One of the major reasons is the shift of economic power to Asian over the last decade. The shift was driven by strong demand from Asia’s large and fast-growing consumer base. Various business entities, including multinational corporations, have already started migrating to the Asian market so as to stay afloat amid the worldwide economic slowdown.

In Asia, Malaysia is being looked at as the destination for setting up offshore companies because of its strategic location, availability of an efficient wealth management and tax planning systems, business-friendly environment, and investor-friendly jurisdiction. The key reasons as to why Malaysia is the best country to set up an offshore company are as follows:

Ranked 24th by World Bank for Ease of Doing Business

When it comes to the ease of doing business, Malaysia bagged the 24th rank in a survey conducted by the World Bank in 2018. Malaysia offers the right business climate for entrepreneurs and Labuan is considered to be the best jurisdiction for foreigners who want to have 100 percent ownership of their businesses and at the same time want to keep their start-up costs low.

Politically Stable

Malaysia is a politically stable country. As many as 30 million people belonging to three ethnic races Malay, Indian, and Chinese live in complete harmony and democratically-elected coalition Government is committed to the nation’s socio-economic development.

malaysia setup offshore company

Strategic Location

Malaysia is surrounded by ASEAN countries. This offers businesses with easy access to as many as 630 million people. The Organisation for Economic Co-operation and Development (OECD) has predicted strong economic growth because of increased domestic demand. This effectively insulates Malaysia from slowing down of growth in China and India.

Low Corporate Tax In Labuan

Malaysia’s Federal Government has designated Labuan Island as a tax haven for international businesses that set up offshore companies there. Further, all Labuan companies are allowed to set up a “mid-shore’ marketing office in Iskandar and Kuala Lumpur. Further, setting up an offshore company in Labuan enables you to enjoy a corporate tax rate of just 3 percent. An investment holding company in Labuan doesn’t have to pay any taxes. Malaysia’s Double Tax Agreement with over 70 participating countries enables you to save more money. As many as 300 financial institutions from around 90 countries have been attracted by Labuan Financial Services Centre.

Flexible Banking System

Setting up an offshore company in Labuan provides you with access to not only a modern but also a flexible banking system that allows you to operate multiple foreign currency accounts.

This is not an exhaustive list of reasons as to why Malaysia is the best country to set up an offshore company. There are many others as well including low real-estate entry point of just RM1 million, excellent infrastructure and connectivity, availability of 2-year work permit for both you and family members, world-class education system, an affordable healthcare system, and friendly and hospitable people.

At QX Trust, we specialize in helping businesses set up offshore companies in Labuan Malaysia. Call us today at +6018-228 9533 or email to us at consultant@qx-trust.com