Registration of Labuan Companies and Financial Institutions
Strategically located in the heart of Asia Pacific, Labuan carries the status as the second Federal Territory of Malaysia since 1984. It is also zoned as international center for Business and Financial services since 1990.
Labuan is committed to ensuring safe and secure business environment through enforcement by Labuan Financial Services Authority under the governance of Central Bank Malaysia. It adheres to international standards, best practices and regulatory requirements set by the Organisation of Economic Co-operation and Development (OECD).
Labuan has a comprehensive, modern and globally-recognised regulatory framework. It protects the client’s confidentiality and complies with international financial standards. The tax structure is simple and straightforward.
Benefits of a Labuan Company
- Corporate Tax：
Investment Activities – 0%
Services & Others – 3% on Audited Net Profit - 0% Personal Income Tax ：on Foreign Director Fee
- 0% Indirect Tax(SST, GST, VAT & Custom Duty)
- 0% Withholding Tax on Dividend, Royalty, Lease Rental, Interest, Technical or Management Fee
- 0% Stamp Duty on Shares, Agreements and Financial Instruments
* Subjected to Labuan Substance Requirements
Non-compliance of substance requirements will be subject to 24% tax on audited net profit
Other Benefits
- Tax Residency Certificate is available
- Private & Confidential on the information related to the Company, Nominees and Beneficiaries
- Employment Pass for Stay and Work in Malaysia
- No Exchange Control Regulations. Free Flow of Funds
- Investment Protection Agreement (IGA) with more than 50 Countries
- Double Tax Treaties (DTA) with more than 70 Countries
FAQ
Yes, companies must meet Labuan’s substance requirements, which include demonstrating sufficient business presence and operational activities in Labuan. Non-compliance with these requirements may result in a 24% tax on audited net profits.
Labuan companies benefit from strict confidentiality protections, ensuring the privacy of information related to the company, its nominees, and beneficiaries.
Yes, companies incorporated in Labuan can obtain a Tax Residency Certificate, which is beneficial for accessing double tax treaties with over 70 countries.
No, Labuan does not impose exchange control regulations, allowing for the free flow of funds in and out of the jurisdiction.
Yes, an employment pass is available for foreign directors and employees, allowing them to live and work in Malaysia.
Yes, Labuan has Investment Protection Agreements (IGA) with more than 50 countries, providing added security for international investors.
Yes, Labuan has double tax treaties (DTAs) with over 70 countries, which can help reduce or eliminate double taxation on international income.
If your Labuan company fails to meet the substance requirements, it will be subject to a 24% tax on its audited net profits instead of the preferential rates.
