There are many reasons as to why individuals and businessmen open offshore bank accounts. They include asset protection, dilution of political risk, currency diversification, higher interest rates, and sounder banking systems, among many others. In Asia, the easiest country to open an offshore bank account is Malaysia because of reasons such as:
- Economic power has shifted to Asia and the region has a fast-growing consumer base
- Malaysia’s strategic location within the Asia-Pacific region and political stability
- Efficient and effective tax planning systems (low corporate tax)
- Business-friendly environment as well as investor-friendly jurisdiction (Malaysia is ranked 24th in the world on the ease of doing business criterion)
- Flexible banking system
Malaysia’s offshore jurisdiction Labuan presents a unique opportunity for setting up an offshore bank account. The offshore financial centre has been steadily attracting businesses to set up operations ever since it was established more than a couple of decades ago. Today, the autonomous region is home to thousands of international corporations. Labuan has been vested with the power to govern its own affairs. However, it forms part of Malaysia. This allows Labuan to enjoy Malaysian sovereignty benefits, including tax benefits for foreign nationals.
Further, the Labuan International Business and Financial Centre (Labuan IBFC) offers a unique balance between client confidentiality, compliance standards, and implementation of international best practices. Further, the regulator the Labuan Financial Services Authority (Labuan FSA) enforces a robust legal and internationally-recognised framework to create a business-friendly environment.
Opening an Offshore Bank Account in Labuan
When it comes to opening an offshore bank account in Malaysia’s Labuan jurisdiction, anyone, even foreigners, can open an account. The procedure to be followed is simple and easy. You just have to prepare and submit a few documents such as:
- Filled in application form
- Signed and verified bank specimen cards
- If you want to open a corporate account, include the notarized Certificate of Incorporation and a copy of the Articles of Association
- For opening both corporate and personal accounts, a certified copy of passport issued by the government of your country, utility bill in original (as address proof), and reference from a bank or a professional are also required
- Your CV, giving details about the type of business you want to conduct, cash flow projection, company profile, the source of funds, counterparties’ names, and a reason for opening the account should also be provided; requirements can vary between banks
Finally, your physical presence is not essential at the time of opening the offshore bank account in Malaysia. Now, can it get easier than this? In the normal case, the account opening process will be completed in a 2 to 3 days’ time. In rare situations, it may take up to three weeks. Further, the Labuan IBFC facilitates cross-border transactions and business dealings.
If you are planning to open an offshore bank account in Labuan, Malaysia, we can help. At QX Trust, we specialize in helping individuals and businessmen set up 100 percent foreign-owned companies and open offshore bank accounts in Malaysia. We have the expertise to advise you on how you can maximise your profits through a Labuan entity.