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.
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.
Administrative
Accounting
Backroom processing
Payroll services
Agency services
Management services
Talent management Insolvency related services
investments in securities, stock, shares, loans, deposits or any other properties situated in Labuan.
Insurance
Money broker
Fund manager
Bank
Securities licensee
Investment bank
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. 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. 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. 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:
From
USD3,500
(Inclusive of Labuan Authority Registration Fees)
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
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 |
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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.
Got an URGENT question?
Contact us via [email protected] or WhatsApp +60-175159832