Labuan, a federal territory of Malaysia located off the coast of Borneo, has established itself as a premier offshore financial center. The jurisdiction offers an attractive environment for company registration due to its favorable tax regime, strategic location, and robust regulatory framework.
Labuan's legal and regulatory framework is designed to facilitate business operations while ensuring compliance with international standards. The Labuan Financial Services Authority (Labuan FSA) oversees the regulatory environment, ensuring transparency and stability. Additionally, Labuan adheres to international anti-money laundering (AML) and counter-terrorism financing (CTF) standards, enhancing its reputation as a secure and reputable jurisdiction. A key advantage of registering a company in Labuan is the ease and speed of the incorporation process. Furthermore, Labuan allows for 100% foreign ownership, and there are no restrictions on the repatriation of profits, making it an attractive hub for international business.
Labuan's geographical location, in the heart of Asia-Pacific, provides strategic access to major markets in the region, including China, India, and Southeast Asia. This enhances its appeal as a base for regional operations. The political stability and business-friendly environment further contribute to Labuan's attractiveness as a destination for company registration.
Manimama ensures a seamless company registration process in Labuan. Trust us to provide expert guidance and support, so your business can thrive from day one in Labuan. Start your journey with confidence, knowing you have the best team by your side.
Legal Opinion about Labuan as a Jurisdiction for Company Formation
Ganna Voievodina
Manimama, CEO
“Labuan offers a compelling combination of tax advantages, regulatory robustness, strategic location, and business-friendly policies, making it a highly attractive jurisdiction for company registration and international business operations. Manimama is ready to help you with business registration in Labuan”.
Our Packages
Our comprehensive packages simplify the process of setting up the perfect legal entity for your business whether you are a small start-up, a non-profit company, or an international company. Let us guide you through every step, ensuring your business begins on a solid foundation.
Company Formation
- Company formation
- Registered address for the 1st year
- Annual accounting requirement bookkeeping
Annual Services
- Company renewal and registered address
- Annual Government Tax
- Mandatory Financial Beneficiary Report
Other Services
- Set of corporate documents (certified/apostille)
- Nominal service for 1 year
- Offshore banking
Key Numbers about Labuan as a Jurisdiction for Company Formation
minimum 1director for a company |
up to 4 weekstimeline for a company registration |
MYR 1minimum share capital |
3%corporate income tax (CIT) rate for trading activities |
up to 30%personal income tax (PIT) rate |
not applicablevalue added tax (VAT) |
Set up Your Company in Labuan in Several Steps
Step 1. Initial setup
- Initiating a preliminary project assessment
- Preparation and filing of the package of documents
Step 2. Company registration
- Appointing a licensed Labuan trust company
- Verification and reservation of the company name at the Labuan Financial Services Authority (FSA)
- Facilitating the notarial process for the company's official registration
- Opening a bank account and depositing a the share capital
- Incorporating the company's data into the Labuan FSA
- Obtaining the Certificate of incorporation from the Labuan FSA, Memorandum and Articles of Association
Requirements for Company Formation in Labuan
Before deciding to set up a new company in Labuan, read the information below to understand the characteristics of an International Business Company (IBC):
Shareholders: the company is required to have at least 1 shareholder, who can be an individual or a corporate entity. There are no restrictions on nationality.
Director: the company must have a minimum 1 director. The director can be a resident of any country.
Company secretary: it must have at least 1 qualified resident company secretary. The secretary has to be appointed within 30 days of incorporation.
Minimum share capital: the minimum capital requirement is MYR 1 (approx. €0,19). The Malaysian government does not put any restrictions on repatriation of capital, which provides flexibility for shareholders.
Legal address: a Labuan company must have a registered office in Labuan, which can be a physical / virtual office / the office address of the company secretary.
Liability: the liability of its shareholders is limited to the amount of capital they have invested in the company through their shares.
Accounting: IBC is required to file an annual report containing a statement of their accounting records, which must be kept in Labuan.
Taxes in Labuan
The basic CIT rate is 24%.
But companies in Labuan that are engaged in international trade or finance can apply for a Labuan International Business and Financial Center (IBFC) status.
Companies with IBFC status are subject to a tax rate of 3% of net profits per audited accounts.
Non-trading (activity relating to the holding of investments in securities, stocks, shares, loans, deposits or any other properties situated in Labuan by a Labuan entity on its own behalf) companies are not subject to CIT in Malaysia, provided it has fulfilled the substance requirements.
- from MYR 5,000 (approx. €980) to MYR 20,000 (approx. €3,921) - 1%
- from MYR 20,000 (approx. €3,921) to MYR 35,000 (approx. €6,862) - 3%
- from MYR 35,000 (approx. €6,862) to MYR 50,000 (approx. €9,803) - 6%
- from MYR 50,000 (approx. €9,803) to MYR 70,000 (approx. €13,724) - 11%
- from MYR 70,000 (approx. €13,724) to MYR 100,000 (approx. €19,606) - 19%
- from MYR 100,000 (approx. €19,606) to MYR 400,000 (approx. €78,426) - 25%
- from MYR 400,000 (approx. €78,426) to MYR 600,000 (approx. €117,640) - 26%
- from MYR 600,000 (approx. €117,640) to MYR 2,000,000 (approx. €392,134) - 28%
- over MYR 2,000,000 (approx. €392,134) - 30%
The PIT rates are as follows:
A non-resident individual is taxed at a flat rate of 30% on total taxable income.
An approved resident individual under the Returning Expert Programme having or exercising employment with a person in Malaysia can enjoy a tax rate of 15% for 5 years on income from an employment.
VAT is not applicable in Labuan.
Double taxation avoidance agreements in Labuan: Austria, Bahrain, Bangladesh, Belgium, Bosnia and Herzegovina, Brunei, Canada, China, Croatia, Czech Republic, Denmark, Egypt, Fiji, Finland, France, Hungary, Iran, Ireland, Italy, Jordan, Kazakhstan, Kuwait, Kyrgyzstan, Laos, Lebanon, Malta, Mauritius, Mongolia, Morocco, Myanmar, Namibia, New Zealand, Norway, Pakistan, Papua New Guinea, Philippines, Poland, Qatar, Romania, Russia, San Marino, Saudi Arabia, Serbia, Singapore, South Korea, Sri Lanka, Sudan, Switzerland, Syria, Thailand, Turkey, Turkmenistan, United Arab Emirates, Uzbekistan, Venezuela, Vietnam, Zimbabwe.
Start Your Company Formation Process with Manimama
There are numerous reasons why Manimama is the leading company formation agent in Labuan:
Expertise in Regulations of Labuan
- 1. Manimama has an in-depth understanding of Labuan's legal and regulatory framework.
- 2. Our team ensures all legal requirements are meticulously met for a seamless company formation process.
Local and International Experience
- 1. With extensive experience in both local and international markets, Manimama can cater to a diverse range of business needs.
- 2. Our expertise spans various industries, providing customized solutions for each client.
Efficient and Timely Service
- 1. We pride ourselves on our swift turnaround times, ensuring your company is registered promptly.
- 2. Our efficient processes minimize delays and get your business up and running quickly.
Client-Centric Approach
- 1. Manimama prioritizes customer satisfaction by offering personalized support and guidance.
- 2. Our dedicated team is always available to address any concerns and provide expert advice.
Robust Network of Local Partners
- 1. We have established strong relationships with local authorities, banks, and service providers.
- 2. This network ensures that your business receives the best possible support and resources.
Ongoing Compliance Support
- 1. We provide continuous support to ensure your business remains compliant with laws of Labuan.
- 2. Our team keeps you updated on any regulatory changes that may impact your company.
Frequently Asked Questions
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What are the benefits of registering a company in Labuan?Benefits include a favorable tax regime, ease of incorporation, strategic location, access to international markets, and a robust regulatory framework.
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Can foreign nationals fully own a Labuan company?Yes, Labuan allows 100% foreign ownership of companies.
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How long does it take to incorporate a company in Labuan?The incorporation process typically takes 3-4 weeks, provided all necessary documents are submitted correctly.
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What are the minimum capital requirements for a Labuan company?There is no minimum capital requirement for a Labuan company.
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Is it mandatory to have a local director for a Labuan company?No, it is not mandatory. A Labuan company can have directors of any nationality.
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Are there any physical office requirements in Labuan?Labuan companies must have a registered office address in Labuan.
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What are the annual compliance requirements for Labuan companies?Labuan companies must file an annual return and audited financial statements with the Labuan Financial Services Authority (Labuan FSA).
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How is the confidentiality of company information handled in Labuan?Labuan offers a high degree of confidentiality for company information, with strict regulations to protect the privacy of business operations and beneficial owners.
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Can a Labuan company open bank accounts locally and internationally?Yes, Labuan companies can open bank accounts both in Labuan, Malaysia, and internationally.
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Is it mandatory to appoint a company secretary for a Labuan company?Yes, Labuan companies must appoint a resident company secretary.
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How can a Labuan company ensure compliance with anti-money laundering (AML) regulations?Labuan companies must adhere to AML regulations set by the Labuan FSA, including customer due diligence and reporting requirements.
Client Feedbacks
“I would like to extend a huge thank you to the Manimama OU for their excellent service”.
“The lawyers quickly understood the essence of my issue, suggested several solutions and helped me choose the best way to proceed”.
"I am very pleased with the services provided by the Manimama OU”.
Manimama as the Best Solution for Your Company Formation in Labuan
By choosing our company formation service in Labuan, you are partnering with a law firm that values integrity, expertise, and client satisfaction. Let us help you set up your company in Labuan and pave the way for your business success.
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