Singapore vs Labuan, Malaysia
Singapore is £3,142 cheaper in year 1 and £1,405 a year cheaper after that.
| SingaporePrivate limited (Pte Ltd) | Labuan, MalaysiaLabuan company | |
|---|---|---|
| Costs | ||
| Minimum, year 1 | £1,143 | £4,285 |
| Minimum, per year after | £960 | £2,365 |
| Typical year 1 | £2,941 | £10,213 |
| Government fee | £183S$315 ACRA | £770About US$1,000 Labuan FSA fees |
| Indirect setup | £0–300 | £1,150–2,300 |
| Running per year | £960–4,255 | £2,365–13,070 |
| Share capital | S$1 | US$1 |
| Rules | ||
| Directors | Local director neededAt least one director must live in Singapore. A nominee costs about S$1,200 to S$3,000 a year. | No local directorYou need a licensed Labuan trust company. |
| Remote setup | Through a providerRemote through a corporate service provider. | Through a providerRemote through a Labuan trust company. |
| Audit | No audit for small companies | Audit required for trading companies |
| Time to form | 1 to 3 days | 1 to 3 weeks |
| Ease for foreign owners | 3/5 | 3/5 |
| Tax and banking | ||
| Corporation tax | 17%17%, with lower effective rates on the first S$200k. | 3%3% of audited profit for trading companies with enough substance, 0% for holding companies, 24% otherwise. |
| Dividend withholding | None | None |
| VAT / GST | 9% | None |
| Banking | 3/5Aspire and Airwallex work. Traditional banks want a visit. | 2/5Labuan banks work if you have substance. |
| All company setup fees in Singapore | All company setup fees in Labuan | |
Questions
Is Singapore cheaper than Labuan for company setup?
Yes. Singapore costs at least £1,143 in year 1, against £4,285 for Labuan.
Which is cheaper to run each year?
Singapore, at least £960 a year against £2,365 for Labuan.
Which needs a local director?
Singapore. At least one director must live in Singapore. A nominee costs about S$1,200 to S$3,000 a year. Labuan does not need one.
Which is faster to set up?
Singapore, in 1 to 3 days. Labuan takes 1 to 3 weeks.
How does corporation tax compare?
Singapore: 17%, with lower effective rates on the first S$200k. Labuan: 3% of audited profit for trading companies with enough substance, 0% for holding companies, 24% otherwise.
Sources: ACRA · LeftRight · Labuan IBFC · EY