Published Fees Policy:
Law & Commerce adopts and practices a transparent fee policy. Most of our fees are published on our website. Before any work is performed, it is our practice to issue a written quotation and obtain the client’s agreement. Only after the quotation has been accepted will an invoice be issued. Our fees are generally divided as follows:
Establishment Fees:
These are almost always payable in the first year and cover the formation of companies or trusts, government fees, work permit applications, bank account introduction, out-of-pocket expenses, etc.
Annual Fees:
These are payable in the second and subsequent years and cover the provision of registered address, company secretarial services, trustee and nominee services, annual taxes or government fees, etc.
Management Fees:
Fees agreed with you prior to undertaking any assignment, based on a pre-agreed scope of work. These typically cover accounting, invoicing, and audit services. A management agreement is normally signed to govern the arrangements between our clients and us.
Refund Policy:
A full refund, less minor expenses, may be claimed if payment has been made and we have not proceeded with setting up a structure. If a structure has already been set up, no refund—whether full or partial—can be made.
Advance Payment:
Unless credit terms are granted (normally to established resellers), advance payment is required before any service can be delivered.
Partial Payment:
Partial payment for a single service item is not allowed. For example, we cannot accept partial payment for company formation. However, staggered payments may be arranged for multiple service items. For instance, if you order company formation, bank introduction, and work permit services, we may issue three separate invoices which can be paid stage by stage.
“Work Related Fee”:
Certain services, such as work permit applications and bank account applications, are considered “work related fees” and not “success related fees.” In other words, we bill you for the work performed in submitting your application, not for guaranteeing the success of the application. No refund, whether full or partial, will be provided if your application is rejected.
Bank Charges:
Unless otherwise agreed, invoices must be paid in full, net of all bank charges. If the amount received is less than the invoiced amount, Law & Commerce reserves the right to withhold the services ordered until the discrepancy is rectified. Alternatively, we reserve the right to carry forward any shortfall to the next year’s billing.
Late Payment:
It is our policy to issue annual fee invoices at least three months before the due date to allow clients sufficient time to arrange payment. Any penalty incurred due to late payment is the responsibility of the client.
Cancellation of Service:
A service may be cancelled if it has not been delivered, either in part or in full.
Notice of Fee Increase:
We strive to keep clients informed of any changes in our fee structure. However, Law & Commerce reserves the right to amend, increase, or otherwise modify its fees at any time without prior notice if such changes are due to factors beyond our control.
Unpublished Fees:
Where certain fees are not published, please write to us for a full written quotation.
Validity of Quotation:
Unless otherwise stated, a written quotation is valid for one month only.
Full payment must be received before any service can be delivered. Payment can be made by telegraphic transfer, cheque or cash. Payment by cheque can be made to ‘Law & Commerce Trust Limited’
Payment by TT in US$ or RM can be made to:
Bank: CIMB Bank Berhad
Swift Code: CIBBMYKL
Beneficiary: Law & Commerce Trust Limited
Please read our Pricing Policy before making any payment.
Economic substance regulation (ESR) requires Labuan entities undertaking Labuan business activities to demonstrate that they carry out substantial economic activities in the jurisdictions, in accordance with the Labuan Business Activity Tax Act 1990 (Act 445)
The Labuan entities, as specified in the list shall, for the purpose of Labuan business activity have:
(i) an adequate number of full time employees in Labuan; and
(ii) an adequate amount of annual operating expenditure in Labuan,
as prescribed by the Minister by regulations made under this Act.
The number of full time employees (FTE) and annual operating expenditure (OPEX) varies depending on the type of business activity.
Non-fulfillment of the required ESR, will eliminate a Labuan entity from qualifying for the minimum tax rate of 3% for Trading entities; or 0% for Non-Trading entities.
The full list of Labuan ESR based on business activity can be referred here.
Labuan insurer, reinsurer, takaful and retakaful;
2. Labuan underwriting manager or underwriting takaful manager;
3. Labuan insurance manager or takaful manager;
4. Labuan insurance broker or takaful broker;
5. Labuan captive insurer/takaful;
6. Labuan international commodity trading company;
7. Labuan bank/investment bank/Islamic bank/Islamic investment bank;
8. Labuan trust company;
9. Labuan leasing or Islamic leasing;
10. Labuan credit token or Islamic credit token company;
11. Labuan development finance company or Islamic development company;
12. Labuan building credit or Islamic building credit company;
13. Labuan factoring or Islamic factoring company;
14. Labuan money broker or Islamic money broker;
15. Labuan fund manager;
16. Labuan securities licensee or Islamic securities licensee;
17. Labuan fund administrator;
18. Labuan company management;
19. Labuan international financial exchange;
20. Self-regulatory or Islamic self-regulatory organisations
23. Other trading entity — Labuan entity that carries out administrative, accounting and legal services including backroom processing, payroll services, talent management, agency services, insolvency related services and management services.
21. Labuan entity that undertakes investment holding activities other than pure equity holding activities;
22. Labuan entity that undertakes pure equity holding activities.
From our experience accounting work is rarely expensive and we work with a number of qualified accountants to provide accounting services to your company.
Through our network of qualified accountants, we can offer weekly, bi-weekly, monthly or yearly accounting regular reporting services. Our accounting services covers all aspects of accounting and bookkeeping, including:-
The accountants are familiar with most industry standard software applications, and if required, we can work with other applications also. With our knowledge and experience in Bookkeeping and Accounting procedures we provide our service for all your Bookkeeping and Accounting needs, whether computerized or manual.
We also work with a few well-established audit firms through which speedy and cost-effective auditing may be performed. If you require our recommendation of Labuan approved auditors, please do not hesitate to contact us.
Accounts & audit: A Labuan company must keep its financial records which clearly show its financial position. This would mean keeping accounts up to trial balance at least. As per Labuan FSA, a Labuan company must maintain proper accounting and other records in Labuan. These proper accounting and other records shall be kept at the registered office and shall be open at all times for inspection. A copy of an audited account shall be lodged with the Authority within certain period.
Appointment of auditor: If your company is a trading company, or a non-trading company that does not comply with the required substance, an auditor must be appointed. This auditor must be “a Labuan approved auditor” as listed by Labuan FSA, which could be recommended on your request.
| Taxing statute | Tax rate | Payment deadline | Is account required? | Filing of account to IRB | Filing of account to Labuan FSA | |
| Labuan Trading entities | LBATA 1990 | 3% or 24% | On or before 31st March every year | YES | YES | YES |
| Labuan Non-Trading entities | LBATA 1990 | 0% or 24% | On or before 31st March every year | YES | YES for 24% | NO |
| Labuan entities electing for ITA 1967 | ITA 1967 | Tax rate varies with year of assessment and company’s paid up capital | Advance tax payable monthly | YES | YES | YES/NO |
Major requirements:
In making any new application or renewal of employment pass, Law & Commerce is obligated to make sure that;
To ensure that applicant is genuine and is not purely used as a tool to get residence, Law & Commerce requires the applicant/Labuan company to take the following mandatory services;
A) Law & Commerce’s fee (estimate)
B) Fees payable to Immigration:
A) Employment Pass
Items 1, 8 & 9 will be prepared by Law & Commerce.
B) Dependant Pass
Items 1 & 6 will be prepared by Law & Commerce.
IMPORTANT NOTES:
