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.

 

Incorporation in Labuan
Item(s)Description
LocationLabuan 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.
Type of companyCalled Labuan Company which in most cases must be companies limited by shares.
Time to incorporateIn 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 feeFrom the minimum of US$300.00 to the maximum of US$1500.00 depending on the size of authorised capital chosen. Most company pays the minimum authorized capital fee.
Shelf company availabilityYes generally available.
TaxationTrading companies pay 3% tax or app. US$6000.00 whichever is elected on a given tax year. Investment holding companies is not subjected to tax.
Minimum annual government feeRM2600.00 (approx. US$730.00) regardless of capital structure, payable every year the latest one month before the anniversary of the company.
Disclosure of beneficial ownerLabuan 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 company, bank, insurers, etc. but not to the Authority.
Bearer sharesNot permitted. All shares must be in registered form.
Standard minimum paid upNone but our standard company comes with a standard paid up of U$1.00.
Standard authorised capitalNone. Labuan now adopts no par value regime.
Permitted currency of capitalAny currency except Malaysian Ringgit although in most cases the US$ is prevalent.
Minimum number of shareholdersOne and there is no residency or nationality requirement.
Minimum number of directorsOne and there is no residency or nationality requirement.
Corporate directorsYes.
Local directorsOptional.
Company secretaryYes 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 & shareholdersNo.
Location of directors and shareholders meetingAnywhere.
Telephone board meetingYes.
Access to Double Tax TreatyWith careful planning, Labuan offshore companies may enjoy the benefits of Malaysia's extensive Double Tax Treaties.
Requirement to file accountOnly for licensed companies and companies electing to pay 3% tax. Nevertheless there is still requirement to keep accounts that will sufficiently show the financial position of the company. With increase compliance, it is commonly excepted that most companies will be required to prepare at least management accounts.
Requirement to file annual returnYes and it is simple.
Local registered office addressA Labuan offshore company must have at all time a registered office in Labuan. Such an office being the principal office of a trust company.

Labuan Corporate Data Sheet – Summary
Item(s)Description
Type of companyTrading/Non-trading[1]
Common or civil law jurisdictionsCommon
Shelf company availabilityYes
L&C’s time to incorporate2-3 days
Min. annual feeMYR2600 or App. USD800.00[2]
Annual return filling feeNIL
Taxation3% or MYR20k which is app. US$6000.00
Public records of director/shareholderNO
Bearer sharesNO
Standard minimum paid up capitalUSD1.00
Standard authorised share capitalNO
Permitted currency of capitalAny currency save the Malaysian Ringgit
Minimum number of shareholdersONE
Minimum numbers of directorsONE
Corporate directorsYES
Local directorsNO
Company secretaryYES
Company sealYES
Public record of directorsNO
Public record of shareholdersNO
Location of directors meetingAnywhere
Location of shareholders meetingAnywhere
Telephone board meetingYES
Double taxation treaty accessYES
Requirement to file accountTrading YES/Non-trading NO
Requirement to prepare accountYES
Requirement to file annual returnYES
Change in domicileYES
Local registered addressYES[3]


[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)

Labuan IBFC – Cost and Benefit Analysis
Item(s)Star RatingDescription
Corporate Registration EfficiencyVery efficient. Name search takes 1-2 hours only and name reservation within one day. Company can be incorporated in 1-2 day.
Availability of NameNames are easily available.
ConfidentialityExcellent. Unauthorised disclosure of client's information is subject to penalty.
Political StabilityExcellent. Since independence in 1957 Malaysia has enjoyed continued political stability.
Maintenance CostHigher in comparison to IBC jurisdictions like BVI, Brunei, Nuie or Bahamas.
Legal SystemBased on English legal system. Islamic laws apply to Moslem only on matters involving marriage, custody and inheritance.
RegulatorLFSA is the arm of the Central Bank and is an excellent regulator. LFSA is also a member of various international regulatory bodies.
LocationRemote from mainland Malaysia although connected by flight on twice-daily basis to and from Kuala Lumpur.
Exchange ControlVery liberal.
Rate of TaxVery favourable, being 3% or RM20k which ever is elected.
Double Tax Treaty AccessMalaysia 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 ServicesGood. 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 ZoneSame time zone with major Asian capitals.
ReputationLabuan is part of Malaysia which is a major trading nation.

Click the link below to see the banking option we have for Labuan Company.

Click the link below to see the fee rates we have for Labuan Company.

  1. Fee schedules for formation of Labuan companies and other fees associated with it. Download
  2. Retail Charges for Miscellaneous Services – Labuan IBFC Download