The popularity of offshore banking has only been rising ever since the early 1950s after World War II. It is estimated that it is approximately $5 trillion worth of global industry. So many of the countries have relied on this industry in building their economy, and the majority of them have prospered. These offshore countries framed jurisdiction to attract foreign investors in their country by providing special benefits that an onshore company never usually could get.
Also, investing all your wealth in your home country alone could prove to be a disaster in case your country befalls into some major political and economic crisis. You could simply lose all your money. And so, having an offshore account is a win-win.
Some Benefits Of Having An Offshore Bank Account
- Tax exemption
- Political diversification
- Convenient access to funds
- High-security level and Confidentiality
- International investment opportunities
- Foreign exchange service benefits
- Great lending and credit facility
- Currency exchange benefits
- Asset protection
An offshore bank account is simply a bank account that is registered outside your home country under a foreign jurisdiction. In general, having an offshore account is meant for transacting money on an international level. Now there exist what we call offshore jurisdictions all across the world. Some of the popular jurisdictions include Panama, BVI, Singapore, Middle East, and others.
One of the latest additions to the list of offshore jurisdictions is in Malaysia. The country has opened a new offshore banking center on Labuan, a tropical island that is just five miles out of East Malaysia. It is establishing itself as one of the major financial hubs in the world because of its pro-business laws, due diligence and transparency. Labuan in Malaysia is a popular offshore banking choice among wealthy individuals and entrepreneurs because of its numerous benefits and low obligations.
Who Can Open A Bank Account In Labuan, Malaysia?
Anyone can open a bank account in Labuan, but there still exist the chances of rejecting your proposal by the banks in case your money comes from an illegitimate source and couldn’t provide enough proof to prove your legitimacy. The place has a law that forbids banks from accepting money, which might have stemmed from crime or illegal activities. And so, it is impossible to open an offshore account in Labuan without identifying the customer. It is also worth noting that, depending on the bank, it is also possible to open an offshore account without having to travel to the bank personally.
Here, we present you our
Top 10 Benefits Of Having An Offshore Account In Labuan, Malaysia
- Low taxes: Taxes in Malaysia are very low. Company has to pay only 3% of their net profits annually or a fixed rate of $7400 whichever is the choice of the company
- NO taxes for non-trading firms: Non-trading firms like investment and service firms are totally exempted from all taxes and enjoy the benefit of it, making it the perfect place for you to hold your financial assets.
- Strict Confidentiality and security: The country has strict regulations and laws that provide security and privacy to the account holders. Interfering and trying to breach such law will result in grave legal trouble.
- Low annual licensing fees: Corporates have to pay a low annual licensing fee of about $22,222, which is about half of that of Singapore.
- No inheritance or estate duties: In Malaysia, you don’t have to pay inheritance or estate duties to the government, which makes the country a perfect place to transfer or locate your inheritance wealth.
- Stable political and strong economy: the country has a relatively stable political and economic environment, which is a much favorable choice for the operation of businesses and to prosper. It also has strong ties with the major financial powers like the U.S and Japan.
- Wide investment opportunities: The place provides a multitude of investment opportunities for you to invest in. It has sufficient wealth management systems and enough financial managers to make your money grow faster in a safer way.
- Timeless and Global access to your account: With the provision of facilities like online banking, it is possible to access and close your account anytime you like from any part of the world with relative ease.
- Security of financial assets and assurance: Having your hard-earned financial assets in Malaysia is well secured that you can rest assured your hard-earned money is well protected even from the political or financial shakiness of the country.
- Exemption from foreign reserve requirements and foreign exchange controls
Opening an offshore account in Labuan,Malaysia usually takes up to three working weeks, provided you already have the necessary documents. With all the perks and low compliance costs, it is definitely worth considering why so many wealthy individuals flock to have their offshore accounts in Malaysia.
If you are a business owner or an individual who wishes to open an offshore account too in Malaysia or other jurisdictions, our financial advisors at Business setup worldwide can help you in selecting the right offshore jurisdiction that will satisfy your needs. Feel free to contact us anytime.