labuan offshore company ? what are pro an cons ?

[troubled soul]

The tax rate applicable to Labuan entity is 3% on chargeable income from Labuan Trading activities only. Automatically, income from non-trading activities such as holding of investments in securities of a Labuan entity is not subject to tax at all.
Do anyone register company in Labuan ? How was your experience?
Does it worth the hassle ?
What are the pro and cons ?
Thanks

 

[Moonlighter]

Labuan requires real substance with at least 2 full time employees, 50k MYR Opex in Labuan, payroll, audit, physical office and there's a defined list of "other trading activities" that qualify for the 3% taxation. You look at easily $30k-40k annual expenses for this kind of setup. In addition access to banking is not that great. Imho paying 9% in UAE is a better option if you're looking for alternatives and policy makers are sluggish. In the past it took them 2 years after implementing rules to clarify details.