What is a Labuan company?
A Labuan company is an entity established in Labuan IBFC, Malaysia’s international business and financial centre. It offers a preferential tax system and regulatory advantages for those seeking an offshore company in Malaysia
What are the main benefits of setting up a Labuan company?
A Labuan company provides a strategic advantage with 100% foreign ownership, a low corporate tax rate of 3% on trading activities, and access to Malaysia’s extensive network of double taxation agreements. These features make it an ideal structure for international trade, asset holding, and investment activities in Asia.
Why do jurisdictions with low tax rates, often called 'tax havens', exist?
Jurisdictions like Labuan exist to attract foreign investment and capital through low tax rates and business-friendly regulations. They help drive economic diversification and global competitiveness while upholding substance and transparency.
Is a Labuan company the same as an offshore company in Malaysia?
A Labuan company is a specific type of offshore company in Malaysia that benefits from Labuan IBFC’s unique legal and tax framework. It allows for 100% foreign ownership, flexibility, and a business-friendly environment.
How do I proceed with Labuan company registration?
To register a Labuan company, appoint a licensed Labuan trust company to handle documentation and application with the Labuan Financial Services Authority. The process is efficient, and Labuan offshore company setup is usually completed in a few days.
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