Labuan Offshore Company

About Labuan

The Federal Territory of Labuan is a region of Malaysia. It comprises seven small islands, of which Labuan is the largest. Labuan lies off the north-west coast of Borneo, 8 km from the Malaysian state of Sabah. It is located on the major shipping and air routes of the Asian Region and is Malaysia’s only deep-water anchorage area.

The nation is economically strong and politically stable. Under the guidance of LOFSA (the Labuan Offshore Financial Services Authority) the Malaysian authorities have invested heavily into the improvement of Labuan’s physical infrastructure, which is now completely modernized. The legal system in Labuan is modeled on the English system, though special laws have been enacted to benefit offshore business operations.

Benefits of Setting up an Offshore Business in Labuan

  • Minimum personnel required for company registration is 1 director and 1 shareholder. May be the same person
  • Company registrants may be from any nationality
  • No need to travel to complete registration
  • Option of 3% tax on corporate profits, or a flat rate of US$6,000
  • Non-trading companies (e.g. holding companies) are exempt from paying corporate taxes
  • No stamp duty, custom duty or VAT
  • Easy registration and compliance procedures for incorporation
  • No trade license requirements for specific industries (e-commerce, import/export and consultancy services)

Key Corporate Features

Type of CompanyOffshore Trading
Type of LawCommon
Shelf company availabilityNo
Time to establish a new company4 - 8 days
Minimum government fees (excluding taxation)RM1500
Corporate Taxation3% or RM20,000
Double Taxation Treaty AccessYes
Share capital or equivalent
Standard currencyUS$
Permitted currenciesAny except RM
Minimum paid upUS$1
Usual authorisedUS$1 - US$1,400
Minimum numberOne
Local requiredNo
Corporate Directors PermittedYes
Publicly accessible recordsNo
Location of meetingsAnywhere
Minimum numberOne
Corporate Members permittedYes
Publicly accessible recordsNo
Location of meetingsAnywhere
Company Secretary
Local or qualifiedLocal
Requirements to prepareYes
Audit requirementsNot required if company pays a flat tax rate of RM20,000
Requirements to file accountsNot required if company pays a flat tax rate of RM20,000
Publicly accessible accountsNo
Requirement to file annual returnYes
Change in domicile permittedYes

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