LABUAN INVESTMENT HOLDING COMPANY

Labuan Investment Holding Company (IHC) offers 100% foreign ownership which is one of the key propositions to attracting many business owners to acquire overseas businesses, stocks and even real estates while enjoying ZERO tax! It can be utilised as a structuring resolution due to the ownership is preserved and to consolidate all foreign companies and entities under one holding company. This method of structuring is deemed beneficial whereby acquisitions would be simpler when purchasing or liquidating as a whole unit. All dividends received are ZERO tax subject however any foreign capital gains and rental proceeds are taxable in respective jurisdictions of the real estates. Occasional stocks holding will be 0% tax on its capital gain.

Setting up the Labuan IHC is fairly easy with a minimum of one Director and Shareholder, both being the same individual or a legal entity while you are in full compliant by submitting your annual Management Account for non-trading activities!

Labuan Investment Holding

KEY ADVANTAGES OF A LABUAN INVESTMENT HOLDING COMPANY


  • 100% foreign owned with single ownership
  • Able to invest in Malaysia and overseas real estates
  • NO Tax and NO Audit Report required
  • NO Inheritance Tax
  • Permitted to open a multicurrency bank account
  • Able to conduct Trading activities, subject to 3% corporate tax with audit
  • Able to deal with Malaysia companies, subject to 24% corporate tax with audit
  • NO withholding tax on Interests, Management Fees and Royalties.
  • 0% Personal Income Tax for Foreign Directorships
  • 50% Personal Income Tax for Foreign Employments

Labuan Investment Holding Company as a Listing Structure


Labuan Investment Holding Company can be public listed in major stock exchanges such as Malaysia, Singapore, Hong Kong, Australia and Dubai. It is also deemed as the perfect vehicle for Initial Public Offering (IPO) or Reverse Take-Over (RTO) within the same entity in other jurisdictions which is more time and cost effective. Additionally, in order to comply with the Common Reporting Standard (CRS) as financial information standard for the Automatic Exchange Of Information (AEOI) which was introduced by the Organisation for Economic Co-operation and Development (OECD) in July 2014, Labuan comparing to other offshore jurisdictions like BVI, Cayman Islands, Seychelles etc. is so much easier and cheaper to administer!

Labuan Investment Holding Company in Blockchain Technology


The Blockchain technology is unquestionable a very brilliant invention which creates the backbone of the new type of use of the internet. It has created one of the most well-known digital currency, Bitcoin, which started as valueless in year 2008 and later taken the world by storm for gaining the value of USD 20,000 in December 2017. Ever since, many has started exploring and investing in this new innovation.

5 Main Uses Of Labuan Investment Holding Company

  • Invest in digital currency trading fund and Blockchain funds.
  • Invest in start-ups of Blockchain technology companies.
  • Invest in private equities such as Venture Capital companies that deal with Blockchain technology.
  • Invest in intellectual patents of Blockchain technology.
  • Invest in public listed Blockchain technology companies.

Labuan Investment Holding Company in Malaysia Real Estate


Malaysia is one of the most attractive places for foreign investments in Asia Pacific. There are many ways for foreign investors to maximise returns given the cost of real estates in Malaysia is relatively cheaper compared to its neighbouring countries. A Labuan Investment Holding Company is able to hold Malaysian real estates where pricing of properties is subjected to the Land office in every state. Below is the list for the minimum purchase price of property in Malaysia.

States in Malaysia Minimum Property Purchase Price
Wilayah Persekutuan Kuala Lumpur, Wilayah Persekutuan Putrajaya, Terengganu, Pahang, Negeri Sembilan MYR 1 million
Selangor MYR 2 million (for Zone 1 & 2)
MYR 1 million (for Zone 3)
Johor MYR 2 million (landed property in international zones)
MYR 1 million (strata tile & landed property within non-international zones except for Medini)
Kelantan, Sabah MYR 1 million
Perak MYR 1 million
Kedah MYR 600,000 (Kedah mainland)
MYR 1 million (Langkawi)
Perlis MYR 500,000
Sarawak MYR 500,000
Penang MYR 2 million (island)
MYR 1 million (mainland)
Malacca MYR 1 million (landed title)
MYR 500,000 (strata title)

BUSINESS UNDER A LABUAN COMPANY VS A FOREIGN INDIVIDUAL

Description Labuan Company Foreign Individual
Ownership Transfer By transfer of shares Tedious and time consuming through will or court
Bank Financing Full cash purchase Eligible to apply for a housing loan
Visa In Malaysia 2-year work visa for Directors / Shareholders and family members Tourist visa or Malaysia My 2nd Home visa
Personal Bank Account Yes, for all family members with multiple accounts in MYR and foreign currencies Yes, can open a bank account upon presenting Purchase Agreement
Minimum Purchase Price Based on different areas and states by Land Office. Based on different areas and states by Land Office.
Yearly Maintenance Cost Yes No
Eligibility  to Conduct Business Yes Required to set up a company