Labuan

Incorporation package includes

  • Incorporation of a Labuan Company
  • 1 year Registered Office Address
  • 1 year Company Secretary Services
  • Preparation of necessary documentation
  • Ensuring your company remains in good standing
  • Providing reminders and support for annual filings and renewals

Why form a company in Labuan, Malaysia?

Tax Advantages

Labuan offers a low tax rate of 3% on audited profits or a flat MYR 20,000 tax for non-trading companies, making it ideal for tax-efficient operations.

Privacy & Confidentiality

Labuan allows for high levels of privacy, with no public disclosure of company ownership and minimal reporting requirements.

Strategic Location

Situated in Asia, Labuan provides easy access to key international markets, including China, India, and Southeast Asia.

No Foreign Exchange Controls

Labuan has no restrictions on foreign exchange, allowing seamless international business operations.

Cost Effectiveness

With low minimum capital requirements and affordable operating costs, Labuan is an ideal location for setting up a non-trading company.

Favorable Regulatory Environment

Labuan has a business-friendly regulatory framework with minimal bureaucracy, providing a fast and straightforward incorporation process.

Enjoy Labuan's tax benefits

Low Corporate Tax Rate

A 3% tax rate on net profits, or a fixed fee of MYR 20,000 as an alternative.

Double Taxation Treaties

Access to Malaysia’s DTA network for reduced tax on foreign income.

No Capital Gains Tax

Gains from asset sales are not taxed.

Flexible Tax Residency

Companies can choose tax residency based on operational needs.

Foreign Income Exemption

Income from abroad is tax-exempt.

Delivery timeline

The incorporation process for a non-trading company in Labuan is quick and efficient, typically taking 7 to 10 business days. Here’s a breakdown:

Required documents

Once we receive the necessary documents, the incorporation process will proceed smoothly, and our team will assist you every step of the way. To incorporate a non-trading company in Labuan, the following documents are required:​

  • Copy of passport or national ID of each director
  • Proof of residential address (e.g., utility bill or bank statement)
  • Copy of passport or national ID of each shareholder
  • Proof of residential address for each shareholder

Preferred company name (subject to availability)

Address proof for the company’s registered office in Labuan (can be provided by our service).

A brief description of the non-trading company’s activities.

Signed consent and declaration from each director and shareholder.

Frequently answered questions

Find answers to common questions about our services and the company formation process. We’re here to provide clarity and support for your business journey.

Labuan offers several advantages for company formation:

  • Tax benefits: A preferential tax regime with only 3% tax on audited profits or a flat fee of RM20,000 (for certain businesses)
  • Strategic location: Situated in a thriving business hub in Southeast Asia
  • Ease of incorporation: Minimal capital requirements and streamlined processes
  • 100% foreign ownership: No local shareholder requirement
  • Access to double taxation agreements (DTAs): Labuan entities enjoy DTAs with over 70 countries

The most common types of entities include:

  • Labuan Company Limited by Shares (most popular for business activities)
  • Labuan Trust Company
  • Labuan Foundation
  • Labuan Limited Liability Partnership (LLP)

Each structure suits different business needs, such as trading, holding, wealth management, or investment activities.

To incorporate a Labuan company, you’ll need:

  • A minimum of one director (individual or corporate)
  • At least one shareholder (individual or corporate)
  • A registered office in Labuan
  • Appointment of a trust company licensed by the Labuan Financial Services Authority (Labuan FSA)
  • A minimum paid-up capital of USD 1 (varies by business type)

Yes, compliance requirements include:

  • Filing an annual return with the Labuan FSA
  • Maintaining proper financial records and submitting audited accounts if applicable
  • Renewing the Labuan Business License annually
  • Meeting substance requirements if claiming tax benefits, such as maintaining a physical office or hiring employees in Labuan (for certain activities)

Yes, many banks in Malaysia and offshore banks offer remote account opening for Labuan companies. However:

  • Some banks may require you to provide additional documentation, such as a business plan or proof of substance.
  • Virtual banks and financial institutions catering to international businesses often provide more flexibility.

Our team at Speedy Incorp LLP can assist with bank introductions and remote account opening.

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