Labuan Company Incorporation
Financial Licenses | Employment Passes | Full Compliance
Give your business the protection of the strictest confidentiality, lowest corporate tax rates and paid-up capital requirements, and some of the most foreigner-friendly policies in Malaysia.
HERO IMAGE PLACEHOLDER
What is a Labuan Company?
Incorporating a company in Labuan is the same as incorporating elsewhere in Malaysia, except here the company will be regulated under the Labuan Companies Act 1990 (LCA 1990), and all the benefits it offers.
A Labuan Company may carry out business activities through or in Labuan, known worldwide as a tax-friendly international business centre.
LABUAN IMAGE PLACEHOLDER
Services
Advisory, consultancy and other professional business services.
Investment
Investment-related structures and international holdings.
Finance
Approved financial services and regulated activities.
Pure Equity
Holding shares or equity interests in other entities.
Can I Do Business in Labuan?
Yes, if your business falls under one of these four categories. The correct structure and substance requirements depend on the activities you plan to conduct.
Requirements to Incorporate in Labuan
Service Company
- Establish a physical office in Labuan.
- Employ two full-time staff in Labuan.
- Spend at least MYR 50,000 of annual operating expenses in Labuan.
Pure Equity Holding Company
- Management and control maintained in Labuan.
- Hold a board meeting in Labuan every year.
- Spend at least MYR 20,000 of annual operating expenses in Labuan.
Investment Company
- Establish a physical office in Labuan.
- Employ one full-time employee in Labuan.
- Spend at least MYR 20,000 of annual operating expenses in Labuan.
No Hidden Fees With Us
Here’s what you pay and everything we promise to do:
Our Incorporation Services Include The Following:
- Company incorporation with paid-up capital below RM50,000
- Company name reservation
- Preparation of all registration forms
- One year Company Secretary and registered address
- Capital fee to authority
- Certificates and statutory books
- One common seal
- Three sets of Certified True Copy statutory documents
- Registration of employer tax number
- Corporate tax filing for first year
- Employer tax filing for first year
- Bank account opening information letter
- Assistance in bank account opening
- Up to two directors and two shareholders
- Declaration of Fit & Proper Person
USD3,500
(Inclusive of Labuan Authority Registration Fees)
Advantages of Incorporating in Labuan
01
Low Tax Rates
0%–3% corporate tax rate, depending on the business, and up to 50% rebate on income tax.
02
Relaxed Requirements
A sole shareholder and director may be a foreigner residing overseas, with no nominee director needed.
03
High Privacy
Company information is kept from the public unless the owner chooses to disclose it.
04
Low Paid-up Capital
Minimum USD1 paid-up capital requirement for foreigners.
05
International Relations
Access to Malaysia’s extensive network of tax agreements and investment treaties.
We Can Also Help You Secure the Following Financial Licenses
| License | Business Nature |
|---|---|
| Labuan Digital Bank | Full-fledged digital bank. |
| Labuan Bank | Full-fledged conventional bank. |
| Investment Bank | Credit facilities, consultancy, advisory, foreign exchange and other banking services except receiving deposits. |
| Digital Exchange | Securities exchange for the listing of digital assets. |
| Money Brokering | Arranging transactions between buyers and sellers in money or foreign exchange markets. |
| Payment System Operator | Payment platform and e-wallet. |
| Fund Manager | Management, advisory and administration services relating to investment funds. |
| Securities Licensee | Investment advice or administrative services for investment purposes. |
| Credit Token | Issuance of tokens to a person for approved purposes. |
| Factoring | Acquiring debts due to any person. |
| Building Credit | Credit facilities for construction or building projects. |
| Development Finance | Credit facilities for economic development projects. |
| LITC | Labuan International Commodity Trading Company. |
| LCMB | Treasury, liquidity and financing management for related companies. |
| Leasing | Lease of aircraft, vessels or high-value equipment and machinery. |
Foreign Talent Support Through Employment & MM2H Passes
| Labuan Employment Pass | Malaysia My Second Home (MM2H) | |
|---|---|---|
| Type of Visa | Business Visa (2 years) | Social Visit Pass (10 years) |
| Purpose | International business | Retirement in Malaysia |
| Business Conduct | May be company director and shareholder | Strictly as investor only |
| Corporate Bank Account | Available | Available |
| Personal Bank Account | Available | Available |
| Personal Income Tax | 12% to 30% | Maximum 30% |
| Requirements | Director or top management; tertiary education or professional qualification; minimum monthly salary RM10,000. | RM1.5 million liquid assets; RM40,000 monthly foreign income; RM1 million fixed deposit after approval; additional RM50,000 per dependent. |
Frequently Asked Questions
Is Labuan corporate tax-free?
Depending on the type of business, rates vary between 0% and 3%, substantially lower than elsewhere in Malaysia.
What is the process of incorporation in Labuan?
The process is similar to company incorporation elsewhere in Malaysia, except it must be completed through a licensed Company Secretary or trust company.
Can I incorporate a company in Labuan myself?
No. Incorporation requires submission through an online portal accessible by a licensed service provider.
Why engage BondsGate Consulting to incorporate on my behalf?
Our experienced team and professional network help coordinate the process, documents and compliance requirements from start to finish.
Are foreigners eligible to incorporate a Labuan Company?
Yes. Labuan is designed to support international business and offers foreign owners a flexible incorporation structure.
Do I need to physically visit Labuan during incorporation?
No. The incorporation process can generally be completed remotely.
Is company information in Labuan kept confidential?
Yes. Information about directors, shareholders and other key details is not generally made publicly available.
Do Labuan companies need to file annual returns and obtain an annual audit?
Yes. BondsGate Consulting can also assist with ongoing accounting, taxation and annual compliance.
What is one disadvantage of a Labuan Company?
The high level of privacy may make it harder for potential investors or partners to conduct due diligence.
PORTRAIT IMAGE PLACEHOLDER
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© 2023 Bondsgate Consulting Sdn. Bhd. All Rights Reserved.