Archive for December 2017

Labuan company is a well known international company in Malaysia. The jurisdiction allows low tax regime for the labuan international entities. A fixed profit tax will be levied each year. For investment companies or business entities, establishing a business in Malaysia can be profitable. It can act without assets, separate property and wealth management. This means that doing business in labuan will  allow favourable conditions to your company for growth and development.

Benefits of labuan international company

 Labuan international company obtain several benefits which are as follows-

No taxes or lower tax rate- offshore non-trading corporations do not require to pay taxes on income and only 3% tax rate will be charged from other business entities.

 One director/ shareholder- A business entity can be incorporated with one shareholder only who can be it’s director also.

 English language- while English is not it’s official language but this language is widely spoken.

 Labuan free seaport- as labuan is a free seaport, no surtax, sales tax, excise tax, import and export duties are charged.

 Corporate infrastructure- corporate infrastructure is also provided by labuan port with qualified workforce.

 Ideal location- labuan provide access to middle east and Asian markets.

 International banks- in labuan, around 100 international banks have branches including DBS, bank of America, BNP Paribas and JP morgan. Foreigners can open banks and brokerage accounts easily in labuan.

 Company registration-

Company registration involves submitting of following standard documents- memorandum of association and articles of association. A consent from the director of company, a statutory declaration and required fee.

The malaysian government agencies that must be registered with the labuan international company are as follows-

Malaysia immigration department

Central bank of Malaysia

Labuan company formation authority

Inland revenue authority


 Shareholders are allowed from any country.

Below mentioned shares are allowed- registered shares par value, preference shares, redeemable shares and shares with no voting right. Only bearer shares are not permitted.

Directors and officers

There should be only one director in a corporation. The directors of the labuan company can become the citizens of the country. Local directors are not required.

Treasures or presidents are not required for the company. A labuan company secretary should be appointed who inhabit anywhere in the world.

Registered office and company secretary

 All the labuan companies must have a registered office and appoint a company secretary as well.

When a DBS certificate is issued, not all convictions and cautions are revealed due to the DBS process of filtering. As you would expect, this has led to many employers and applicants wondering what the process entails and its implications.

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What is the process of filtering?

The process of filtering is a recent one. It came to fruition in 2013 following a high court case that questioned why all criminal record information should appear on DBS certificates, especially if incidents were minor and/or had been committed a long time ago. The outcome of the case determined that not all cautions and convictions should appear on a certificate following a DBS check.

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As a result, the DBS filtering process was initiated to limit the disclosure of offences if they met the predetermined criteria. These strict criteria vary in accordance with the type of offence committed, the age of the offender at the time of the offence, and whether they have other offences.

If cautions or convictions are withheld, they won’t appear on the certificate and neither will the certificate state that criminal information has been withheld. Although the information is withheld, this does not mean that a person’s criminal record has been discarded by the Police National Computer (PNC).

You can find out more about criminal records checks – including DBS checks – from Unlock, which is a charity for people with criminal convictions.

What are the implications for applicants?

With regard to applicants, the filtering process means that if they have a previous caution or conviction that qualifies for protection, it will be removed during the filtering process. They will therefore not have to declare this information to the employer, even if the employer asks about it.

What are the implications for employers?

The filtering process should not have any implications for employers, as any information protected is determined by legislation to be peripheral. Employers are not entitled to be notified of these offences via a DBS check.

Nevertheless, employers should be wary of how they question applicants with regard to their criminal records in relation to this legislation; for example, employers that are permitted to question an applicant on their criminal record must be careful not to ask for information protected by the filtering process.

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