Intergroup
Company Formation

Labuan Company Formation

Establish your company in Labuan — Malaysia's international business and financial centre offering a fixed 3% tax rate on trading profits. We handle the entire process from Labuan FSA registration to post-incorporation setup.

Why incorporate in Labuan?

Labuan's trading companies pay a flat 3% tax on audited net profits, while non-trading (investment holding) companies can elect a 0% rate. As a federal territory of Malaysia, Labuan provides preferential access to ASEAN markets and Malaysia's network of 75+ double-taxation treaties.

The Labuan Business Activity Tax Act (LBATA) and Labuan Companies Act provide a distinct regulatory framework for international business. Labuan FSA offers a robust but business-friendly environment, and there are no restrictions on foreign ownership. Companies can be incorporated in as little as 2–3 business days.

3%

Trading tax rate

75+

Tax treaties (via MY)

2–3 days

Registration

0%

Non-trading option

Low 3% tax rate

Labuan trading companies enjoy a flat 3% tax on audited net profit — one of the lowest rates in Asia. Non-trading (investment holding) companies may elect a 0% rate.

Gateway to ASEAN

Labuan is a Malaysian federal territory with preferential access to ASEAN markets and Malaysia's extensive network of 75+ double-taxation agreements.

Flexible ownership

No restrictions on foreign shareholding. A single director and shareholder are sufficient, and they need not be Malaysian residents.

Dedicated legal framework

The Labuan Business Activity Tax Act (LBATA) and Labuan Companies Act provide a clear, separate regulatory regime tailored to international business.

Regulated by Labuan FSA

The Labuan Financial Services Authority provides a robust but business-friendly regulatory environment, recognised internationally for insurance, leasing and Islamic finance.

Quick incorporation

Companies can be registered within 2–3 business days. Labuan also permits re-domiciliation of foreign companies into the jurisdiction.

Labuan company formation

Setup costs depend on your specific structure and requirements. Contact us for a personalised quotation.

Labuan Company Formation

Labuan company formation costs vary based on the entity type, licensing requirements and substance arrangements. We'll analyse your situation and provide a detailed cost breakdown.

The incorporation process

A clear, guided path from first consultation to a fully registered Labuan company.

  1. 1

    Initial consultation

    Day 1

    We discuss your objectives and recommend the optimal Labuan structure — trading company, non-trading company, holding company or protected cell company.

  2. 2

    Name search & reservation

    1 day

    We check name availability with Labuan FSA and reserve your chosen company name.

  3. 3

    Document preparation

    1–2 days

    We draft the Memorandum & Articles of Association, statutory declarations and all required forms.

  4. 4

    KYC & due diligence

    3–5 days

    We collect certified ID, proof of address, source-of-funds documentation and background checks for all directors and beneficial owners.

  5. 5

    Labuan FSA registration

    2–3 days

    We file the incorporation documents with Labuan FSA. Upon approval you receive the Certificate of Incorporation.

  6. 6

    Post-incorporation setup

    3–5 days

    We arrange for the company seal, tax registration, opening of corporate bank accounts and any required Labuan FSA licences.

What you'll need

Comprehensive documentation — we'll guide you through every step.

Individual directors / shareholders

  • Certified copy of passport
  • Proof of residential address (< 3 months)
  • Bank reference letter
  • CV / professional profile
  • Source of funds declaration

Corporate shareholders

  • Certificate of Incorporation (certified)
  • Memorandum & Articles of Association
  • Register of directors, shareholders & UBOs
  • Certificate of Good Standing
  • Board resolution authorising the investment

Company details

  • Proposed company name (2–3 alternatives)
  • Description of intended business activities
  • Proposed share capital (minimum US$1 for standard company)
  • Details of proposed directors and shareholders

Advantages

  • Flat 3% tax on trading profits — one of the lowest in Asia
  • Non-trading companies may elect 0% tax
  • No withholding tax on dividends, interest or royalties paid to non-residents
  • Access to Malaysia's 75+ double-taxation treaties
  • Quick 2–3 day incorporation process
  • No requirement for local directors or shareholders
  • Re-domiciliation of foreign companies permitted

Things to consider

  • Must carry out "substantial activity" in Labuan to maintain tax status
  • Annual audited accounts and tax returns required
  • Minimum of one Labuan trust company as company secretary
  • Some activities require a Labuan FSA licence

Frequently asked questions

What is the difference between a Labuan trading and non-trading company?
A trading company carries on commercial activities (e.g. consulting, trading, services) and pays 3% tax on audited net profit. A non-trading company earns passive income (dividends, interest, rent) and may elect a flat tax of RM 20,000 or a 0% rate if certain conditions are met.
How long does it take to incorporate?
Once all KYC documents are received, Labuan FSA typically processes the incorporation within 2–3 business days.
Do I need local directors?
No. There is no requirement for locally-resident directors. However, you must appoint a Labuan trust company as your registered agent and company secretary.
What is the substance requirement?
Trading companies must have an adequate number of employees in Labuan and incur an adequate amount of operating expenditure in Labuan. Labuan FSA publishes guidelines on what constitutes "adequate".
Can a Labuan company open a bank account?
Yes. Labuan companies can open accounts with Labuan-based banks as well as banks in mainland Malaysia and internationally. We facilitate introductions to our banking partners.
Is Labuan suitable for holding companies?
Yes. Labuan is widely used for investment holding due to the potential 0% tax rate on passive income, access to Malaysia's treaty network and a well-established regulatory framework.

Register in Labuan

Get a tailored quote for your Labuan company — we'll recommend the best structure for your goals.

+852 5803 1008

Ready to set up in Labuan?

Speak with our team for a free consultation. We'll help you choose the right structure and handle the entire process.

+852 5803 1008