Labuan company is a well known international company in Malaysia. The jurisdiction allows low tax regime for the labuan international entities. A fixed profit tax will be levied each year. For investment companies or business entities, establishing a business in Malaysia can be profitable. It can act without assets, separate property and wealth management. This means that doing business in labuan will  allow favourable conditions to your company for growth and development.

Benefits of labuan international company

 Labuan international company obtain several benefits which are as follows-

No taxes or lower tax rate- offshore non-trading corporations do not require to pay taxes on income and only 3% tax rate will be charged from other business entities.

 One director/ shareholder- A business entity can be incorporated with one shareholder only who can be it’s director also.

 English language- while English is not it’s official language but this language is widely spoken.

 Labuan free seaport- as labuan is a free seaport, no surtax, sales tax, excise tax, import and export duties are charged.

 Corporate infrastructure- corporate infrastructure is also provided by labuan port with qualified workforce.

 Ideal location- labuan provide access to middle east and Asian markets.

 International banks- in labuan, around 100 international banks have branches including DBS, bank of America, BNP Paribas and JP morgan. Foreigners can open banks and brokerage accounts easily in labuan.

 Company registration-

Company registration involves submitting of following standard documents- memorandum of association and articles of association. A consent from the director of company, a statutory declaration and required fee.

The malaysian government agencies that must be registered with the labuan international company are as follows-

Malaysia immigration department

Central bank of Malaysia

Labuan company formation authority

Inland revenue authority


 Shareholders are allowed from any country.

Below mentioned shares are allowed- registered shares par value, preference shares, redeemable shares and shares with no voting right. Only bearer shares are not permitted.

Directors and officers

There should be only one director in a corporation. The directors of the labuan company can become the citizens of the country. Local directors are not required.

Treasures or presidents are not required for the company. A labuan company secretary should be appointed who inhabit anywhere in the world.

Registered office and company secretary

 All the labuan companies must have a registered office and appoint a company secretary as well.

Comments are closed.

  • Partner links