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Q：
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What are the common methods for closing a Labuan company?
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A：
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A Labuan company may be closed through the following methods:
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Striking off following the resignation of the Resident Secretary; or
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Applying for the alternative procedure for voluntary winding up.
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Q：
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What conditions must be fulfilled before a Labuan company can be struck off or wound up voluntarily?
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A：
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Prepare final accounts and submit the tax return up to the date business ceased;
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Pay all final staff salaries and close employee files;
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Distribute remaining assets to the members;
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Confirm by board resolution that all debts and obligations have been or will be settled; and
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Close all company bank accounts.
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Q：
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When will the company be struck off the register following the resignation of the Resident Secretary?
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A：
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Provided there are no objections, the Labuan FSA will strike off the company one (1) month from the date of the Resident Secretary’s resignation. The company will be deemed dissolved if it remains continuously struck off for a period of eighteen (18) months.
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Q：
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When is winding up required instead of striking off?
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A：
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Voluntary winding up is required when:
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The company has assets or liabilities;
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There are outstanding creditors;
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The company is insolvent or unable to pay its debts; or
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The shareholders wish to formally wind up with a liquidator appointed.
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Q：
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When will the company be dissolved as a result of winding up?
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A：
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The voluntary winding-up process of a Labuan company typically takes approximately six (6) to eight (8) months. The company is considered dissolved upon approval by the Labuan FSA and the issuance of the Certificate of Dissolution.
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Q：
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Is a Labuan company required to retain accounting records after deregistration?
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A：
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Yes. All Labuan companies are required to retain their accounting records and related documents for a period of seven (7) years, and such records must be kept in Malaysia, as the Inland Revenue Board reserves the right to request these documents within that period.
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SOALAN LAZIM
