Labuan Company Formation

Our team provides complete incorporation services in Labuan. We also offer post-incorporation assistance, regardless of the type of company you have opted for.

The video below presents how to open a company in Labuan:

What are the main advantages of setting up an offshore Labuan company? 

We list some of these key advantages of starting a business in Labuan below:

• full ownership – the local legislation allows full foreign ownership and the company can be formed by only one person, who can act as a shareholder and as a director;
• no corporate tax – this only applies to a select group of companies known as non-trading companies, such as holding companies;
• lack of other taxes – there is no sales tax, no VAT, no customs duties and no stamp duty;
• no personal income tax – for a Labuan offshore company, a non-resident director was exempt from personal income tax on director fees up to YA 2025 (check whether the exemption has been extended).

What are the steps for registering a Labuan company? 

The general steps for opening a Labuan company are the following:

1. choose the company name – it is advisable to propose at least three company names that will be checked for availability;
2. determine the shareholder ownership – for those companies with more than one shareholder, the ownership share should be established during this early stage;
3. register the company – the application for registration generally includes the Articles of Association for the company, the filled in forms as well as statutory declarations;
4. apply for a work permit (only if you will work or live in Labuan) – this is not required for incorporation and investors can decide if they wish to include any dependents on their visa application;
5. open the bank account – a Labuan company is required to have a bank account in its name.

What types of incorporation services can I obtain from your company formation team?

Our team of specialists in company formation in Labuan can offer a wide range of services for our international clients. Our corporate services package includes the following:

1. trade name check and reservation;
2. registered address;
3. tax registration;
4. common seal and rubber stamp;
5. secretary services.

How much does it cost to benefit to open a company in Labuan?

In order to benefit from our company registration services, clients must pay a fee of USD 1,990 (please mind that the fee includes the professional fee for company formation in Labuan, the registration fee charged by the local authorities and the secretary fee – the latter is paid for 1 year of services). We recommend you get in touch with us for a personalized offer.

Do you provide other corporate services?

Yes. You can rely on our team of specialists in company formation in Labuan for other types of services necessary for a newly registered legal entity. Some of the ways in which we can assist investors are:

1. apply for and open a corporate bank account;
2. offer ongoing compliance services in accordance with the legal requirements applicable to the type of company investors have opted for.

How long does it take to open a corporate bank account?

Please mind that, while the incorporation process can be completed in a short amount of time, setting up a corporate bank account can take at least 1,5 months. The duration of the process is influenced by the sector in which the company operates, the client’s profile, the bank’s internal procedures, and others.

Do you provide an initial consultation for starting a company in Labuan?

Yes. In order to understand the needs of our client, we will establish an initial consultation during which we will try to determine our client’s needs, so that we can offer the most suitable business approach. For this, during our first consultation, our team will cover subjects such as:

1. the industry of interest and the types of activities intended to be carried out in Labuan;
2. the type of company;
3. the nationality of our client and of the person who will act as a company director;
4. any other matter that is of importance when starting a business here.

The infographic below presents how to open a company in Labuan in 5 steps:

How long does it take to register a company in Labuan?

The registration procedure can be completed in a period of minimum 1 week (it can take up to 10 days) and the investor is not required to be physically present in the country. The procedure can be completed with the help of our team.

What is the most common way to set up a business in Labuan?

The process of incorporating a Labuan company is simple and foreign investors can have full foreign ownership over the legal entity they register here. The most commonly used business form is the Labuan international company – the legal entity that allows for 100% foreign ownership and benefits from all of the tax advantages practiced in Labuan. 

Can I open a branch or a subsidiary in Labuan?

Yes, companies from abroad can decide on establishing branches or subsidiaries in Labuan in respect to the rules of the Labuan Financial Services Authority (Labuan Companies Act 1990). In both cases, the documents of such entities need to contain information about the parent company and about the board of managers controlling the branch or the subsidiary in Labuan, Malaysia.

Can I set up a trust in Labuan?

Yes, investors from abroad can set up trusts in Labuan, in respect to the Labuan Trusts Act 1996 and the following conditions:

• a legal entity or a natural person can represent a trust in Labuan;
• the assets of a trust can be handled by a representative in the name of a specific beneficiary;
• there is no need for a minimum share capital for setting up a trust in Labuan.

Can I purchase virtual office services in Labuan?

If you do not want to set up a traditional office connected to your activities, it is best to direct your attention to virtual office packages in Labuan. Such services come with a prestigious business address in Labuan, a local phone number, a fax number and also a virtual assistant.

Here is a video with complete information about how to open a company in Labuan with assistance offered by our Labuan team of company formation agents: 

What laws regulate the activity of foreign companies in Labuan?

Labuan Financial Services and Securities Act of 2010, Labuan Trusts Act of 1996, Labuan Business Activity Tax Act of 1990, and Labuan Limited Partnership and Limited Liability Partnership Act of 2010 are few of the legislation that observe how business is done by foreign investors. We remind that each type of company in Labuan needs to be registered in respect with the Labuan Companies Act 1990. 

Entrepreneurs who need assistance to open a company in Labuan can contact our team of company formation consultants.