Incorporate in Labuan
Set up a Labuan Company
The Labuan International Business and Financial Centre is a reputable free trade area located in the Federal Territory of Labuan, an island off the coast of the state of Sabah in East Malaysia.
Labuan is becoming a one of the major financial hubs of Asia due to its pro-business regulation, low taxes and compliance with international standards on due diligence and transparency.
Companies incorporated in Labuan benefit from an attractive tax regime. Trading profits arising outside of Malaysia are taxed at 3% or at a flat tax of Rm20,000.
Non-trading profits such as those arising from the holding of investments in securities, stocks, shares, loans, deposits or other properties are not subject to taxation.
Furthermore, payments on dividends, royalties, interests, technical and management fees are exempt from withholding taxes.
Labuan is ideal for import-export businesses. As it has a free-port status, indirect taxes do not apply. Stamp duty is also exempted on all instruments executed by a Labuan entity in connection with its Labuan business activity. In addition, Labuan incorporated entities may benefit from the tax treaties that Malaysia has concluded.
Labuan companies are required to have the so-called commercial substance in Labuan. This could be having a Labuan bank account, staff in Labuan, a virtual office or an annual board meeting in Labuan.
The Labuan private limited company is an excellent vehicle for ASEAN market entry, fund management, group holding company, IP holding, tax structuring, international trade and professional services, among others.
Labuan is also an interesting option for those who wish to set up a regulated exchange that accepts fiat currencies in an advantageous fiscal environment. In addition, although banks are quite selective, it is possible to open bank accounts for exchanges in both Malaysia and Labuan for entities incorporated and regulated in the free zone.
Learn more about setting up a Labuan Company:
Labuan Limited Company – US$4,300.00 (All Included)
We pride ourselves in providing the best possible professional service which includes our honest hassle free “No Hidden Fee” policy. Your incorporation package includes:
- Registration and Government Fees
- Bound set of Constitutional Documents
- Certified Copies of Constitutional Documents for bank account opening
- Courier fees
Time to form: 2 to 4 weeks.
All our incorporation services include a yearly consulting session, a dedicated account manager and access to our global network of trusted business services, including introductions to accountants, financial, tax and legal advisors at no cost.
- Labuan Bank Account (Remotely) – US$500.00
- Malaysia Bank Account (Remotely/In-person) – US$500.00
- Mauritius Bank Account (Remotely) – US$500.00
- Curaçao Bank Account (Remotely) – US$500.00
- Bahamas Bank Account (Remotely) – US$500.00
- Offshore Bank Account* (Remotely) – US$300.00
- Singapore Bank Account (In-person) – US$900.00
- Hong Kong Bank Account (In-person) – US$1,200.00
- Cayman Islands Bank Account (Remotely) – US$900.00
- Crypto-Friendly Bank Account (Offshore, Remotely) – US$3,000
We include introductions to payment processors or merchant accounts with all of our incorporation services. Whether you just need standard credit card processing or specialized services for high risk processing, we are happy to help you with introductions that can empower your business.
*Offshore Bank Accounts: Belize, Puerto Rico, Nevis, Antigua, Saint Lucia. Other bank account options may be available depending on business profile and turnover.
Annual Fees – US$2,900.00
- Corporate Tax Filling
- Labuan FSA Fee
- Secretarial Services Fee
With CRS (Common Reporting Standard by OECD), it is important to validate your business by creating commercial substance for tax proofing from Tax Authority should they check. Additionally, Banks may need to see a valid business address to facilitate the account opening and for all Authorities to send mails.
- Virtual Office – US$290 per year (include mail receiving and scan)
- Office desk plus phone in service and address – US$1,100 per year