The benefits of conducting or doing business from Labuan IBFC are numerous. The prime of which is the fact that in Labuan IBFC no or minimum tax is levied on profit derived from offshore business. Nevertheless it should be remembered that some offshore businesses must be conducted with valid licence. We have experience in assisting our clients in applying for various licences in Labuan IBFC. Labuan IBFC is well regulated. Applicants for business licences must consider sound financial strength, solid and proven industry records, competency, fit & proper of key persons and sound AML/CFT practice as very important criteria when applying for business licences.

Labuan is a well-regulated financial centres and over the years Labuan FSA has issued financial business licences to local and foreign owned international players. Cost of operation, including licence fee, is lower than centres like Hong Kong or Singapore or even onshore Malaysia. Further to this advantage is the fact that all licensed entities are allowed to run a marketing office in either Kuala Lumpur or Johor Baharu or both.

The following are some of the business or financial licences that can be applied in Labuan IBFC;

Under Banking industry

  1. Labuan banking business.
  2. Labuan investment banking.
  3. Islamic banking business.
  4. Building credit business.
  5. Credit token business.
  6. Development finance business.
  7. Leasing business.
  8. Factoring business.
  9. Money broking.


Under Insurance industry

  1. Captive insurance.
  2. Life, general and composite insurance.
  3. Re-insurance.
  4. Insurance manager.
  5. Underwriting manager.
  6. Insurance broker.


Under Securities industry

  1. Fund management.
  2. Mutual fund.
  3. Trustee for mutual fund.
  4. Administrator of mutual fund.
  5. Custodian of mutual fund.


Under trust industry

  1. Trust company.
  2. Managed trust company

The annual fee and annual licence fee to be paid to LFSA also differ, as illustrated in the tables below:

Annual Fee
Type Of Company Annual (MYR*)
Offshore Company 1,500
Foreign Offshore Company 5,300
Money Broking 5,000
Offshore Factoring within Labuan 40,000
Offshore Factoring outside Labuan 60,000
Trust/Managed Trust Companies 8,000


Annual License Fee
Type Of Company Annual License (MYR*)
Offshore/ Investment Banking 80,000
Offshore Leasing Business 40,000*
Captive Insurance 10,000
Master Rent-A-Captive 13,000
Subsidiary Rent-A-Captive 3,000
Life/ General Insurer/ Re-Insurer 50,000
Underwriting/ Insurance/ Broker 20,000
Fund Management outside Labuan 7,500
Fund Management within Labuan 5,000
Company Management 5,000

To check prevailing rate in US$ please click

Whilst you can make an application on your own, you may also appoint us during the application stage. If we are appointed, during the application process we are your “conduit”, receiving correspondence from you and the authorities. We will send your application forms, advise you on completion of the forms, relay your inquiries to the authorities or vice versa, advise on the documents required and its sufficiency, etc. We will submit complete documents on your behalf and attend to all inquiries, and where necessary attend meetings and apply for extension of time to file certain documents.

Establishment of your licensed company in Labuan IBFC
This may be done prior to submitting your application. This may also be done once approval for a licence is granted, but before a licence is extracted. At this stage we will incorporate your company in accordance with the structure that you require, including drafting suitable M&A for your company. Once incorporated we will provide the following;

  • Registered address.
  • Licensed Company Secretary.
  • All company documents and kits.
  • Open bank account/s.
  • Appoint auditors.
  • Prepare resolutions, if required from time to time.
  • Mailing, ( if required ).
  • Provision of resident director ( if required ).
  • Annual statutory and tax filling.


If you require an office in Labuan IBFC we could help you with:

  • Recommending suitable location.
  • Establishing phone, fax, internet lines.
  • Establishing courier accounts.
  • Applying for work permit, etc.


Please take note a licensed entity may apply for marketing office to be set up in either Kuala Lumpur or Johor Bahru and we can assist you to apply for an approval. Fee payable to Labuan FSA after approval is MYR7500.00 annually.

On consultancy basis we can undertake to review your policies and procedures, including AML/CFT policies and procedures. As most licensed companies are required to conduct internal audit, we can perform this task on consultancy basis.