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
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.

Minimum number of Shareholders


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.






Labuan Corporate Data Sheet – Summary

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)

Labuan IBFC – Cost and Benefit Analysis

Item(s) Star Rating


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. 

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