Although the terms ‘offshore business’ or ‘offshore company’ have no precise legal, tax or general business meaning, they usually refer to matters relating to the structuring of international business, family wealth management, asset protection and tax planning.
Traditional usage of the term ‘offshore companies’ means companies incorporated in offshore jurisdictions such as Labuan, Mauritius, Brunei, Bermuda etc.
An offshore company can either be a trading or a non-trading company. An offshore non-trading company is one whose activity is related to the holding of investments in securities, stocks, shares, loans, deposits and immovable properties on its own behalf. An offshore trading company typically generates profit by buying and selling products or services to customers in international markets.
In Labuan, both residents and non-residents are permitted to establish offshore companies. As of August 1 2008, such companies (except licensed entities like banks, insurance companies, etc) may carry on business activities with Malaysian residents, subject to their submission to LOFSA of the prescribed notification form not later than 10 days from the date the transaction is carried out.
Click here for guidelines on incorporating a Labuan offshore company