Labuan, Malaysia has emerged as a premier international business hub, attracting entrepreneurs and investors from across the globe—especially within the Asia-Pacific region. Its business-friendly environment, robust legal framework, and alignment with the Common Reporting Standard (CRS) make Labuan Company Registration one of the most attractive options for foreign investors seeking flexibility, low taxation, and confidentiality.
Why Register a Labuan Company?
Labuan offers an ideal platform for businesses looking to expand globally. Some of the key benefits include:
- Favorable Tax Incentives under the Labuan Business Activity Tax Act 1990 (LBATA).
- 100% Foreign Ownership permitted for non-residents.
- Ability to operate international business activities in, from, or through Labuan.
- Access to Malaysia’s strategic location as a gateway to ASEAN and global markets.
Types of Labuan Companies
A Labuan company can be established in different forms:
- Limited by Shares
- Limited by Guarantee
- Unlimited Company
These structures allow flexibility for small startups, holding companies, or multinational corporations.
Business Activities
Labuan companies may carry out a wide range of business activities. However, certain regulated sectors require licenses under:
- The Labuan Financial Services and Securities Act 2010, or
- The Labuan Islamic Financial Services and Securities Act 2010.
This includes businesses in banking, insurance, fund management, leasing, factoring, and company management.
Who Can Establish a Labuan Company?
- Both Malaysian residents and foreign investors are eligible to set up Labuan companies.
- According to Section 7(5) of the Labuan Companies Act 1990 (LCA), a Labuan company can transact with Malaysian residents as long as Labuan FSA is notified within 10 working days.
Currency and Transactions
- Labuan companies must transact in foreign currencies (USD, EUR, GBP, etc.).
- Exceptions: They may use Malaysian Ringgit (MYR) only for administrative and statutory costs or when receiving fees and commissions.
Additional Flexibility
- Ownership: Labuan companies can hold majority shares in domestic Malaysian companies.
- Shipping: Permitted to conduct international shipping operations with non-residents.
Labuan Offshore Company – Registration Requirements
To incorporate a Labuan Offshore Company, an investor must appoint a licensed Labuan trust company as its official incorporation agent. Such service providers offer:
- A registered office and resident secretary in Labuan.
- Handling of secretarial duties and filings as required under the LCA.
- Trust officers who may act as resident directors or secretaries.
Labuan Offshore Company – Key Features
- Directors: At least one director required.
- Resident Secretary: Must appoint a local resident secretary.
- Capital: No minimum or authorized share capital requirement.
- Shares: Shares issued do not have par/nominal value; bearer shares are prohibited.
- Treasury Shares: Permitted.
- Classes of Shares: Can issue multiple classes with different rights.
- Amalgamation: Allows mergers of two or more Labuan companies.
- Registered Office: Mandatory, usually the office of the appointed resident secretary.
- Confidentiality: Strict privacy laws prevent disclosure of shareholding, management, or transaction details.
Why Choose ZattWorldSolutions for Labuan Company Setup?
At ZattWorldSolutions, we provide end-to-end Labuan incorporation services, including:
- Company formation and registration
- Resident secretary and registered office services
- Business licensing for regulated activities
- Banking and tax advisory
- Corporate compliance and documentation
With our expertise, you can establish a Labuan offshore company seamlessly and take full advantage of Malaysia’s tax-friendly, internationally recognized business environment.
📧 Contact us at info@zattworldsolutions.com or 📞 +6011-16262730 to start your Labuan incorporation today.
