Labuan is comprised of a few small islands located off the coast of Sabah, Malaysia. Labuan is part of Malaysia and being formally under British rules is a common law jurisdiction, with an independent English based-legal system.
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Incorporation in Labuan |
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| Item(s) | Description |
| Location | Labuan comprises a few small islands located off the coast of Sabah, Malaysia. Labuan is part of Malaysia and being formally under British rules is a common law jurisdiction, with an independent English based-legal system. |
| Type of company | Called Labuan Company which in most cases must be companies limited by shares. |
| Time to incorporate | In most cases including reservation of name, a Labuan Company can be incorporated within 1-2 days. A name once reserved is valid for three months. Please allow 1-2 weeks for corporate kits to be sent. |
| Government’s Registration fee | From the minimum of US$400.00 to the maximum of US$1500.00 depending on the size of authorised capital chosen. Most companies pay the minimum authorized capital fee. |
| Shelf company availability | Yes generally available. |
| Taxation | 3% (Trading) and not taxable (Non-Trading) provided substance requirement is met. |
| Minimum annual government fee | RM2600.00 (approx. US$730.00) regardless of capital structure, payable every year the latest one month before the anniversary of the company. |
| Disclosure of beneficial owner | Labuan adopts anti-money laundering/counter terrorism financing legislation under which all licensed service providers are required to know the identity of their customers before accepting a transaction. Not to do so would be an offence under the legislation. Therefore disclosure of beneficial ownership will be made to trust companies, banks, insurers, etc. but not to the Authority. |
| Bearer shares | Not permitted. All shares must be in registered form. |
| Standard minimum paid up | None but our standard company comes with a standard paid up of U$1.00. |
| Standard authorised capital | None. Labuan now adopts no par value regime. |
| Permitted currency of Capital | Any currency except Malaysian Ringgit although in most cases the US$ is prevalent. |
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Minimum number of Shareholders
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One and there is no residency or nationality requirement. |
| Minimum number of Directors | One and there is no residency or nationality requirement. |
| Corporate directors | Yes. |
| Local directors | Optional. |
| Company secretary | Yes and if more than one is appointed at least one must be a resident secretary. Only an approved officer of a Labuan trust co or its wholly owned subsidiary may be appointed as a resident secretary. |
| Public record of directors & Shareholders | No. |
| Location of directors and shareholders meeting | Anywhere. |
| Telephone board meeting | Yes. |
| Access to Double Tax Treaty | With careful planning, Labuan offshore companies may enjoy the benefits of Malaysia’s extensive Double Tax Treaties. |
| Requirement to file account | There is a requirement to keep accounts that will sufficiently show the financial position of the company. With increased compliance, it is commonly expected that most companies will be required to prepare at least management accounts. |
| Requirement to file annual return | Yes and it is simple. |
| Local registered office address | A Labuan offshore company must have at all time a registered office in Labuan. Such an office being the principal office of a trust company. |
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Labuan Corporate Data Sheet – Summary |
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| Item(s) | Description |
| Type of company | Trading / Non-Trading [1] |
| Common or civil law jurisdictions | Common |
| Shelf company availability | Yes |
| L&C’s time to incorporate | 2-3 days |
| Min. annual fee | MYR2600 or App. USD700.00 [2] |
| Annual return filling fee | NIL |
| Taxation | 3% (Trading) and not taxable (Non-Trading) provided substance requirement is met. |
| Public records of director/shareholder | NO |
| Bearer shares | NO |
| Standard minimum paid up capital | USD1.00 |
| Standard authorised share capital | NO |
| Permitted currency of capital | Any currency save the Malaysian Ringgit |
| Minimum number of shareholders | ONE |
| Minimum numbers of directors | ONE |
| Corporate directors | YES |
| Local directors | NO |
| Company secretary | YES |
| Company seal | YES |
| Public record of directors | NO |
| Public record of shareholders | NO |
| Location of directors meeting | Anywhere |
| Location of shareholders meeting | Anywhere |
| Telephone board meeting | YES |
| Double taxation treaty access | YES |
| Requirement to file account | YES |
| Requirement to prepare account | YES |
| Requirement to file annual return | YES |
| Change in domicile | YES |
| Local registered address | YES |
[1] Non-trading company generally holds investment and passive in nature.
[2] Payable one month before each anniversary of the company.
[3] Address of the principal office of a Labuan trust company ( L&C’s address)
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Labuan IBFC – Cost and Benefit Analysis |
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| Item(s) | Star Rating |
Description |
| Corporate Registration Efficiency | ★★★★★ | Name search takes 1-2 hours only and name reservation within one day. Company can be incorporated in 1-2 day. |
| Availability of Name | ★★★★★ | Names are easily available. |
| Confidentiality | ★★★★★ | Unauthorised disclosure of client’s information is subject to penalty. |
| Maintenance Cost | ★★★★ | Higher in comparison to IBC jurisdictions like BVI, Brunei, Niue or Bahamas |
| Regulator | ★★★★★ | LFSA is the arm of the Central Bank and is an excellent regulator. LFSA is also a member of various international regulatory bodies. |
| Location | ★★★★ | Remote from mainland Malaysia although connected by flight on twice-daily basis to and from Kuala Lumpur. |
| Exchange Control | ★★★★★ | Very liberal |
| Rate of Tax | ★★★★★ | Very favourable, being 3% of net audited profit for Trading or 0% for Non-Trading. |
| Double Tax Treaty Access | ★★★★ | Malaysia has signed 50++ DTT with its business partners and Labuan being part of Malaysia enjoys DTT protection. However, a few countries notably Japan, the UK and Switzerland have denied Labuan companies of Malaysia’s DTT protection.” |
| Local Banking Services | ★★★ | Although there are more than 50 offshore banks in Labuan. Not all of them take deposits. Initial deposit is ranging from US$5k to US$500k. Availability of internet banking is limited. |
| Time Zone | ★★★★★ | Same time zone with major Asian capitals (GMT+8) |
| Reputation | ★★★★★ | Labuan is part of Malaysia which is a major trading nation. |
Click the link below to see the banking option we have for Labuan Company.
- Labuan Company Banking Option Download
Please do not hesitate to contact us for more information on the banking option.