Set Up Your International Business in Labuan, Malaysia
Structured support for foreign entrepreneurs, international companies and investors considering Labuan IBFC. Contact us to know more.
What Is Labuan IBFC?
Labuan is a Malaysian federal territory and an international business and financial centre. It provides a credible, regulated framework for entrepreneurs and companies that operate across borders and want a recognised base within Asia.
A Labuan company can be used for a range of international business activities, always subject to the proposed activity, due diligence and the applicable regulatory requirements.
Who Can Establish a Labuan Company?
Both Malaysian residents and non-residents may establish a Labuan company. Eligibility is subject to the proposed activity, due diligence and applicable rules at the time of incorporation.
Main Characteristics
- At least one director
- At least one shareholder
- Resident secretary
- Registered office in Labuan
- Incorporation through a licensed Labuan trust company
- No bearer shares
- Activity-specific licensing where required
- Annual compliance requirements
Contact us to know more about the applicable requirements.
Trading and Non-Trading Activities
In plain terms, a Labuan trading activity generally involves active commercial operations such as trading, consulting or services, while a non-trading activity generally involves holding investments such as shares, securities or property. The distinction affects how an activity is treated. We do not provide individual tax advice.
Tax Overview
Labuan trading activity may receive specific tax treatment under applicable Labuan legislation, while qualifying non-trading activity may receive different treatment. This is subject to current legislation, substantial activity requirements and full compliance.
Tax outcomes depend on the actual activity, management, substance, source of income, ownership, applicable treaties and the tax residence of the owners. Independent tax advice is required. Contact us to know more.
Substance Requirements
Access to Labuan tax treatment may require appropriate operational substance, which can include:
- A physical office in Labuan
- Appropriate personnel
- Appropriate operating activity
- Proper records and management
- Activity-specific compliance
Requirements vary by business activity. Contact us to know more about the requirements relevant to your proposed activity.
Banking Support
Global Pass Consultants can help prepare the application and coordinate introductions.
Bank account approval depends on the bank's KYC process, source-of-funds review, business activity, ownership structure and risk policy. No bank account is guaranteed. Contact us to know more.
Work Permits and Family
Qualifying Labuan entities may apply for work permits for eligible directors or employees. Availability, duration, role requirements, salary requirements and dependent options are subject to current Labuan FSA and Malaysian immigration rules. Contact us to know more.
Company incorporation does not by itself guarantee work permits, dependent visas, residency or automatic immigration. Immigration matters are handled by authorized professionals.
Industries
Normal activities
- International trading
- Consulting
- Digital services
- E-commerce
- Holding activities
- Regional management
- Import and export
Regulated activities
- Banking
- Insurance
- Leasing
- Factoring
- Fund management
- Money broking
- Securities
- Other financial services
Regulated activities need proper licensing and professional review. Contact us to know more.
General Document Checklist
- Passport copy
- Proof of residential address
- Professional or business profile
- Proposed company names
- Description of business activity
- Shareholder and director information
- Source-of-funds information
- Business plan, where required
- Corporate documents for corporate shareholders
- Additional due-diligence documents when requested
Contact us to know more about the documents relevant to your circumstances.
Setup Process
No costs or fixed timelines are shown. Contact us to know more.
Requirements & Considerations
Every business structure is different. Requirements depend on the proposed activity, ownership, licensing, compliance and operational needs. Contact us to know more.
Frequently Asked Questions
Ready to Explore Labuan?
Start with a confidential assessment of your business, preferred country and expansion goals. Contact us to know more.