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Liaison Office in Labuan

Liaison Office in Labuan

liaison office in Labuan works as a representative office (RO) often established by foreigners in this country who want to introduce the business presence without any activities and for verifying the investment area. There are several requirements linked to a liaison office in Labuan at the time of registration. In this matter, you can receive assistance and information from our team of company incorporation specialists in Labuan.

What are the attributes of a liaison office in Labuan?

Companies from abroad can set up a liaison office in Labuan instead of branches or subsidiaries, in order to verify the market in which they want to activate. Because it is not a legal entity, a liaison office in Labuan comes with several restrictions, such as:

  • an RO cannot deal with financial operations or issue invoices for other companies;
  • it cannot deal and sign contracts with other parties in Labuan;
  • a liaison office can perform marketing activities as established by the parent company;
  • the annual financial statements need to be submitted with the authorities in Labuan.

If you would like to set up a liaison office in Labuan, please bear in mind that a representative needs to be registered in the first place. Our team of company formation agents in Labuan can offer in-depth information on this matter and can act as representatives of your liaison office in Labuan.

Who can set up a liaison office in Labuan?

Any foreign company can be interested in establishing its presence in Labuan through a liaison office to verify and test the business market before commencing any activities in this jurisdiction.

We remind that if you would like to set up a Labuan trust company, you can solicit assistance from our advisors. 

Do I need a name for a liaison office in Labuan?

Liaison offices in Labuan will be registered with the name of the parent company that wants a representative office in this jurisdiction. The Trade Register in Labuan is in charge of registering liaison offices.

Choosing a liaison office in Labuan

If you would like to have a temporary office instead of a traditional one, your company can be represented in Labuan through a liaison office. The low costs of incorporation, several tax benefits and the possibility of performing marketing activities make foreign investors decide on a liaison office in Labuan.

We are at your disposal with assistance and details if you are interested in establishing a liaison office in Labuan, so please do not hesitate to contact us.

Unlike the Labuan offshore business, which is liable to the payment of the corporate income tax, charged at a very small rate of only 3%, the liaison office is exempted from the payment of this tax, given that it does not develop commercial activities.

However, both a commercial company and a representative office can and will hire employees, therefore the same employment taxes will apply.