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Labuan Company for Australian SMEs

Labuan Company For Australian SMEs

In today’s world, the number of small to medium-sized enterprises (SMEs) are increasing dramatically. Australia is no exception. According to a study by SME Association of Australia, SMEs wake up 70% of the Australian’s workforce and contribute significantly to the economy.

In pursuit of company growth and expansion, Australian SMEs can face many challenges. According to Business Victoria, the five most common financial problems affecting small businesses are:

  • Rising cash flow
  • Rising costs
  • Taxation and business regulation
  • High Australian dollar
  • Interest rates

Additionally, most Australian SMEs do not singularly serve their home market, but also to clients and markets worldwide. This can create more complexity in their business strategies.

Setting up a Labuan entity can help your Australian business seize greater opportunities!

You can simplify your business with a single Labuan entity covering all your businesses worldwide, including Australia and Malaysia!
You can enjoy the benefits offered by the Labuan jurisdiction, including the favourable tax regime.

Australian Companies – Tax Benefits From Shifting Your Trading Business To Labuan Jurisdiction!

+ Corporate tax is reduced by 27% when an Australian company shifts to Labuan – from Australian tax rate of 30% to Labuan tax rate of 3%
+ Lower operation cost – due to current Malaysia Ringgit depreciation
+ Affordable manpower employment and office rental in Malaysia
+ Marketing offices can be set up in Kuala Lumpur and Iskandar Johor
+ Bank accounts denominated in AUD and other foreign currencies can be opened with onshore and offshore banks
+ Permissible to deal with Malaysian markets for opportunities
+ Can be 100% foreigner-owned with a single person/corporate as director and shareholder
+ Tax residence certificates can be issued for both company and expatriates
+ 2 years’ renewable work permit is available for expatriates and families to stay in Malaysia
+ 0% Personal Tax on Director’s Fee
+ 50% Personal Tax Rebate for employed expatriates
+ 0% Indirect Tax – no sales tax, service tax and custom duty
+ 0% Withholding Tax on dividends, royalty, interest, technical fee or management fee paid to non-residents
+ Eligible to elect to be taxed under local Malaysia tax regime (Income Tax Act 1963) – enjoy double tax treaties with more than 70 countries
+ 0% Stamp Duty for share transfer and any instruments

If you own an Australian SME and are wondering how you can use Labuan to simplify your business, enjoy the tax benefits and to accelerate your business forward, get in touch with us today by filling the enquiry form.

Get advice on how to set up a Labuan Company with substance. We provide a complete range of service for your Labuan investment as we simply “simplify the complexities”! 

Source: SME Association of Australia, Business Victoria




Product/Services You Intend to Sell

Target Market
Malaysia OnlyWorldwide

Capital Amount

Company Structure (present or intended)
100% Foreign-OwnedJoint-Venture with Malaysian

Do You Intend to Set Up Physical Office/Shop in Malaysia?

Do You or Your company Require Expatriate Visas?

Other Info You Need Us To Know