Labuan LP

An LP can be formed with a minimum of two partners – a General Partner and a Limited Partner. Responsibility for running the operation lies with the General Partner and his personal liability is unlimited. He assumes liability for the actions of the other partners and his assets may be surrendered to creditors if the business defaults on its loans.
The Limited Partner does not have an active role in the daily running of the business, and as the title suggests, has his risk mitigated by limited liability. In other words, his assets are not placed at risk and at worst he can only lose the capital that he has invested. This protection is introduced in Section 19 of the Act states that a Limited Partner shall not be liable for the debts or obligations of the Labuan Limited Partnership.
Features of Labuan LP

Labuan  LP	Corporate Details
General
Type of Entity	LP
Registered Office in Labuan	Yes
Shelf company availability	No
Our time to establish a new company	4 weeks
Corporate Taxation	Yes
Access to Double Taxation Treaties	No
Share capital or equivalent
Standard currency	US$
Permitted currencies	EUR, USD, GBP
Minimum paid up	None
Bearer shares allowed	No
No-par-value shares allowed	No
Directors
Minimum number	Two
Local required	No
Publicly accessible records	Yes
Location of meetings	Anywhere
Corporate directorship allowed	No
Shareholders
Minimum number	Two
Publicly accessible records	Yes
Corporate shareholders allowed	Yes
Location of meetings	Anywhere
Company Secretary
Required	No
Local or qualified	No
Accounts
Requirements to prepare	Yes
Audit requirements	No
Requirements to file accounts	Yes
Publicly accessible accounts	Yes
Other
Requirement to file annual return	Yes
Migration of domicile permitted	Yes

 Labuan LP Distinctive Benefits

•  The benefit of this model is clear – managing partners can attract investment to support growth and maintain operations without interference, and investors have the protection of limited liability, which encourages them to provide finance.
• The flexibility of the model means that a Limited Partner can leave or be replaced without the limited partnership needing to be dissolved.
• Another advantage of the LP structure is that partners can allocate profits, gains and losses as they wish, irrespective of any specific partner’s equity proportion (subject to tax law compliance).
• The maximum number of partners permitted in an LP is 50.

The Valsen Advantage

1. Speedy, Efficient and consistent Services.
2. Relentless effort to obtain bank accounts.
3. Expert advice on structuring options.
4. Dedicated ongoing compliance support.