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 most foreigner-friendly policies in Malaysia.

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Labuan Company
Incorporation

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.

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Investments in securities, stock, shares, loans, deposits or any other properties situated in Labuan.

Can I Do Business in Labuan?

Yes, if your business falls under one of these four categories:

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
Company name reservation
Preparation of all registration forms
One year provision of Company Secretary and registered address
Capital fee to authority
Disbursement on certificates and statutory books
One common seal (to be kept at registered office)
Three sets of Certified True Copy statutory documents
Registration of employer tax number
Corporate tax filing for 1st year
Employer tax filing for 1st year
Letter of information for one bank account opening
Assistance in bank account opening
Up to two directors and two shareholders. Additional USD50/person
Attestation of Declaration of Fit & Proper Person

From

USD3,500

(Inclusive of Labuan Authority Registration Fees)

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Advantages of Incorporating in Labuan

Low Tax Rates

0% – 3% corporate tax rate (depending on business) and up to 50% rebate on income tax

Relaxed Requirements

Sole shareholder and director may be foreigners residing overseas (no nominee director needed).

High Privacy

Company information is kept from the public unless owner chooses to disclose it.

Low Paid-up Capital

Minimum USD 1 requirement for foreigners.

International Relations

Double Tax Agreement (DTA) with 75 countries and Bilateral Investment Treaties (BIT) with 65 countries worldwide.

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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	Provide credit facilities, consultancy, advisory services, foreign exchange and other banking services except receiving deposit.
Digital Exchange	Securities Exchange for the listing of digital assets.
Money Brokering	Arranging transactions between buyers and sellers in the money or foreign exchange markets.
Payment System Operator	Payment Platform, E-wallet.
Fund Manager	Management, advisory and administration services about investment fund.
Securities Licensee	Provides investment advice or administrative services for the purpose of investment.
Credit Token	Issuance of token to a person for certain purposes.
Factoring	Acquiring debts due to any person.
Building Credit	Providing credit facilities to construction or building projects.
Development Finance	Providing credit facilities for economic development projects.
LITC	Labuan International Commodity Trading Company.
LCMB	Management of treasury, liquidity and financing to related companies.
Leasing	Lease of aircraft, vessels or high value equipment/machines.

And We’re Ready to Assist with Your Foreign Talent Needs 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 of Issuance	For international business	For retirement in Malaysia
Business Conduct	Can be the company’s 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 Possess tertiary education or professional qualification Draw minimum monthly salary RM10,000	RM1.5 million of liquid assets RM40,000 proof of monthly foreign income Place RM1 million fixed deposit in a Malaysian account after approval Additional RM50,000 fixed deposit for each dependent

Frequently Asked Questions

Is Labuan corporate tax-free?

Depending on the type of business, rates vary between 0-3%, drastically lower than anywhere else in Malaysia.

What is the process of incorporation in Labuan?

The process is similar to company incorporation anywhere else in Malaysia, except it must be done through a Company Secretary or secretarial company like Bondsgate.

Can I incorporate a company in Labuan myself?

Unfortunately, no. Incorporating in Labuan requires submission to an online portal that can only be done through a Company Secretary like Bondsgate.

Why engage Bondsgate to incorporate on my behalf?

We have years of experience in this space, and a network of partners on the ground in Labuan to help facilitate a smooth incorporation process.

Are foreigners eligible to incorporate a Labuan Company?

Yes! In fact, it’s easier and cheaper to set up a company in labuan as a foreigner compared to elsewhere in Malaysia.

Do I need to physically visit Labuan at any point in the incorporation process?

No, everything can be done remotely.

Is company information in Labuan kept confidential?

Yes, information about directors, shareholders and other key details are never made publically available.

Do Labuan companies still need to file annual returns and get an annual audit?

Yes, and Bondsgate can assist you through our on-demand accounting and corporate taxation services.