Labuan Company for Stock Market TradingLabuan Company is often used for corporate trading activities such as of forex, stocks and bonds with various international brokers. Most international brokerage houses recognizes Labuan company as a legitimate structure, hence trading accounts can be opened without hassle in Malaysia or elsewhere.
Tax Structure Benefits of Labuan Company: For Stock Market Trading:
- Act as Investment Holding to hold stocks/bonds/funds – zero corporate tax with no audit report (submit only management accounts only)
- If the Labuan company trades actively- it will be considered as a trading company, hence the corporate tax payable will be based on trading in worldwide exchanges, corporate tax will be 3%. For Malaysian stock exchange activities, net profit tax will be 24%, with the requirement of audit report Labuan Company for Stock Market Trading
- Eligible to open a company brokerage account for worldwide exchanges trades and variety of investments, not limited to stock trading
- Trading in the Malaysian stock market is permissible with the requirement to inform Labuan FSA, with 24% tax rate
- One person company – a single director and single shareholder may be the same person
- Privacy – no public searches Labuan Company for Stock Market Trading
- Disposal of the company by way of transfer of shares, no stamp duty fee
- Company bank account for various foreign currencies and RM account
- Foreign directors receiving Director fees can be charged to the company as expenses
- Foreign directors receiving Director fees as personal income is non-taxable (tax exempted until the year 2020)
- Directors and their family eligible to apply for (two) 2 years’ renewable multiple entry work permit
- Any amount of dividends distributed to shareholders is non-taxable
- No withholding tax on interests, management fees and royalties
- Able to access to more than 70 Malaysia Double Tax Agreement treaty partners.
- Yearly maintenance of company includes LFSA fee and secretarial fee union is approx. USD2,000
Feel free to contact us with filling the enquiry form to explore the best type of Labuan entity to meet your business objectives. We “simplify the complexities” of your Labuan investment. Labuan Company for Stock Market Trading
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