Why Choose Labuan for Company Formation?
Labuan is a federal territory of Malaysia and a midshore financial centre, the Labuan International Business and Financial Centre (Labuan IBFC), supervised by the Labuan Financial Services Authority (Labuan FSA). It combines an offshore-style tax regime with a regulated base inside Malaysia and offers compelling advantages for Asia-focused structures:
Preferential Tax Regime. A 3% tax rate on audited net profits for a Labuan trading company that meets economic-substance requirements, and 0% on qualifying non-trading (investment-holding) activity
100% Foreign Ownership. Full foreign ownership with no requirement for a local Malaysian shareholder
Midshore Positioning. A midshore jurisdiction that combines an offshore-style tax regime with a regulated, treaty-network base inside Malaysia
Asia Gateway. A practical base for trading, holding, and financial-services activity across Malaysia and the wider Asia region
Regulated Financial Centre. The Labuan International Business and Financial Centre (Labuan IBFC) is supervised by the Labuan Financial Services Authority (Labuan FSA)
Financial-Services Licensing. Labuan licenses regulated activities such as money broking, insurance and reinsurance, leasing, and fund management
Low Capital and Simple Structure. No statutory minimum capital, and a single shareholder and director are permitted
English-Language Common-Law Framework. A business-friendly legal and regulatory framework with English widely used in documentation
Labuan Entity Types
Labuan Company (Trading)
- Min. capital
- No statutory minimum
- Shareholders
- 1 minimum (can be corporate)
- Best for
- Asia trading and operating businesses; 3% tax on audited net profits where substance is met
Labuan Company (Non-Trading)
- Min. capital
- No statutory minimum
- Shareholders
- 1 minimum (can be corporate)
- Best for
- Investment holding of shares, securities, and assets; generally not taxed
Licensed Labuan Entity
- Min. capital
- Set by licence type
- Shareholders
- 1 minimum
- Best for
- Regulated activity (money broking, insurance, leasing, fund management) under Labuan FSA
Labuan Foundation / Trust
- Min. capital
- No statutory minimum
- Shareholders
- Founder / settlor
- Best for
- Private wealth, family office, and succession planning
Common Uses for Labuan Companies
Asia Trading
A midshore base for regional trading and distribution. A Labuan trading company that meets substance is taxed at 3% on its audited net profits.
Holding Company
An investment-holding vehicle for shares, securities, and other assets. Qualifying non-trading (investment-holding) activity is generally not subject to tax.
Financial-Services Licensing
A licensing base for regulated activities such as money broking, insurance and reinsurance, leasing, and fund management, supervised by Labuan FSA.
Wealth and Succession
Labuan structures, including foundations and trusts, are used for private wealth, family-office, and succession planning.
Note: Costs are indicative and may change with your requirements and regulations. Contact us for a tailored quote.