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Forms of Company

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Introduction

´╗┐This document was downloaded from Coursework.Info - The UK's Coursework Database - http://www.coursework.info/ Forms of Company Introduction Labuan is part of Malaysia, and Malaysian company law applies there. Most foreign companies wanting offshore status in Labuan will use Offshore Company or Limited Partnership status, see below. These offshore forms are subject to Malaysian Company law except as described below. Regular Malaysian companies can be used in Labuan, but will not receive the tax and other privileges accorded to Offshore Companies. Generally, companies incorporated in Malaysia are regulated by the Malaysian Companies Act, 1965. The types of companies are: * a company limited by shares, which can be private or public; * branch of a foreign company; * partnership or sole proprietorship. Foreign investors normally conduct their businesses in Malaysia in the form of a private company limited by shares. Incorporation of a company requires an application to be made to the Registrar of Companies to approve the proposed name by submitting the following forms: 1. Memorandum and Articles of Association 2. Statutory declaration of compliance with the Companies Act 3. Certificate of identity 4. Consent to act as director 5. Statutory declaration by persons before appointments as directors Companies pay registration fees based on the amount of authorized capital, and both filing and stamping fees apply for submission of the above documents. ...read more.

Middle

is only permitted to carry on business in, from or through Labuan. An Offshore Company may not: * carry on business with a resident of Malaysia except as permitted by the Offshore Banking Act 1990; * carry on the business of Banking or Insurance or such similar business unless it is licensed so to do under the Offshore Banking Act 1990 or the Offshore Insurance Act 1990; * carry on business in the Malaysian currency except for defraying its administrative and statutory expenses; * carry on business of shipping or petroleum operations in Malaysia or carry on business as a trust company. The Offshore Companies Act was amended recently to allow Malaysians to own offshore companies, as well as to permit foreign-owned offshore companies to invest in Malaysia subject to certain conditions. Manufacturing activities are normally carried out by companies incorporated under the Malaysian Companies Act. An activity which is neither offshore trading nor offshore non-trading will be subject to tax under the regular tax regime. Offshore insurance and banking businesses are permitted to maintain a marketing office in Kuala Lumpur until the Government decides that the management office should be relocated in Labuan. An Offshore Company is not treated as carrying on business with residents of Malaysia if: * it makes or maintains deposits with a person carrying on business ...read more.

Conclusion

Trusts An offshore trust can be created by a will or other instrument of writing including a unilateral declaration of trust. The duration of an offshore trust shall not exceed 100 years unless otherwise provided in the terms of the trust. A foreign trust may be enforceable, recognised or registered in Labuan. Similarly, a Labuan offshore trust can be transferred to another country. In November 2001, the Association of Labuan Trust Companies Malaysia (ALTCM) persuaded the Board of the Labuan Offshore Financial Services Authority (LOFSA) to change the status of Labuan trust firms from domestic to offshore companies and is currently awaiting final approval of the move from the Malaysian Finance Ministry. It is believed that the move will help enhance the Island's competitiveness, and will deliver a fillip to the Island's trust industry which had been affected by the 1997 economic crisis. Currently, trust companies in Labuan are incorporated under the Companies Act 1965 unlike offshore entities which are incorporated under the Offshore Companies Act 1990 which means that the trust companies pay higher taxes. By being offshore companies the trust firms will be able to enjoy a more attractive tax structure having to pay only a 3 per cent tax of their net audited profit. This document was downloaded from Coursework.Info - The UK's Coursework Database - http://www.coursework.info/ ...read more.

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