fbpx

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.

Labuan Company Incorporation cover

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. Labuan Company may carry out business activities through or in Labuan, known worldwide as a tax haven.

Labuan Incorporate What is Labuan Company
Services

Administrative
Accounting
Backroom processing
Payroll services
Agency services
Management services
Talent management Insolvency related services

Investment

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

Finance

Insurance
Money broker
Fund manager
Bank
Securities licensee
Investment bank

Pure Equity

Only income is dividends / capital gains via share ownership of other entities

Can I Do Business in Labuan?

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

Requirements to Incorporate in Labuan

Service Company 1

Service Company

1. Establish a physical office in Labuan

2. Employ two full-time staff in Labuan

3. Spend at least MYR 50,000 of annual operating expenses in Labuan

Pure Equity holding company 1

Pure Equity Holding Company

1. Management & control in Labuan (company registered address, secretarial company and company documents must be archived in Labuan)

2. Hold a board meeting in Labuan every year

3. Spend at least MYR 20,000 of annual operating expenses in Labuan

investment company 1

Investment Company

1. Establish a physical office in Labuan

2. Employ one full-time employee in Labuan

3. 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 <RM50,000
  • 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)

Advantages of Incorporating in Labuan

Low Tax Rate 1

Low Tax Rates

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

Relaxed requirement 1

Relaxed requirements

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

High Privacy 1

High Privacy

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

Low Paid up 1

Low Paid-up Capital

Minimum USD 1 requirement for foreigners.

startegy HR delivery

International Relations

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

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 PassMalaysia My Second Home (MM2H)
Type of VisaBusiness Visa (2 years)Social Visit Pass (10 years)
Purpose of IssuanceFor international businessFor  retirement in Malaysia
Business ConductCan be the company’s director and shareholder Strictly as investor only
Corporate Bank AccountAvailableAvailable
Personal Bank AccountAvailableAvailable
Personal Income Tax12% 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 fix deposit in Malaysia account (after approved)
  • Additional dependent RM50,000 of fix deposit (per pax)

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 MISHU.

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 MISHU.

Why engage MISHU 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 MISHU can assist you through our on-demand accounting and corporate taxation services.

Tell me one disadvantage of a Labuan Company.

The privacy Labuan offers can make it harder for potential investors or partners to conduct due diligence on your business.

maya ai powered company secretary chat assistant
Got an URGENT question?

Contact us via [email protected] or WhatsApp +6017-5159832

Contact Us

    Powered by MISHU AI
    Maya

    Hello, I am Maya, your AI assistant. I have been trained to answer any questions about our services to make things easier and faster for you. Feel free to ask me anything!

    Dont worry, for peace of mind, a human colleague will follow up after our chat to confirm important details and offer further assistance.

    Let's get started. How can I help you today?

    Scroll to top