Labuan Company & Investment Holding

Company Secretarial Services

    • A Labuan company is incorporated under the Labuan Companies Act 1990 (“LCA”) and enjoys preferential tax benefits provided under the Labuan Business Activity Tax Act 1990 (“LBATA”).
    • It can engage in various business activities, including trading and investment in Labuan.
    • Labuan investment activity involves holding investments, while Labuan trading activity includes banking, insurance, and more.
    • Labuan Company can apply for Licensing required for specific sectors like banking & financial services, insurance & takaful, fund management, capital markets ,wealth management, digital financial services, commodity trading and ship registry (“Labuan Licensed Companies”).
    • Both residents and non-residents can establish Labuan companies.
    • Transactions with residents require notification to Labuan FSA.
    • Business transactions should be in foreign currencies other than MYR, except for specific purposes.
    • Labuan companies can own stakes in Malaysian domestic companies and engage in shipping operations with non-residents.
    • Summary showing different Labuan business activities and its tax treatment.

Business Activity

Tax Treatment

Labuan Investment Activity

Not subject to Tax

Labuan Trading Activity

3% of net profits as per audited accounts

Carry out both Labuan Trading and Investment Activities

Same tax as Labuan Trading Activity at

3% of net profits as per audited accounts

Non Labuan Business Activities

25% tax under Malaysia’s domestic Income Tax Act 1967 (“ITA”)

Labuan Company can irrevocably elect to be taxed under Income Tax Act 1967 instead of LBATA.
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Labuan Investment Holding Company

• A Labuan Company serves as a structuring solution, consolidating foreign companies under one holding company with preserved ownership.
• Labuan Investment Holding Company can acquires overseas assets with ZERO tax, and be listed on major stock exchanges in Singapore, Hong Kong, Australia, Dubai or Taiwan for IPOs or RTOs.
• It also functions as an investment holding company for shareholders of a public listed company (PLC).
• Tax-free dividends and occasional stock holdings enjoy 0% tax on capital gains, while foreign capital gains and rental proceeds are taxable in respective jurisdictions.

Licensing Requirements



Incorporation Agent

Appoint a Labuan Trust Company to:

· Provide registered office & resident secretary.

· Performs secretarial duties for documents lodgement.

· Availability of its trust officers for appointment as resident director & secretary.

Share capital

Minimum one share (with no minimum per share value) In any currencies, except MYR.

Directors & Shareholders

At least one director and one shareholder, which can be the same person

Operational Requirements



Company Secretary

At least 1 resident secretary which shall be a Labuan Trust Company

Registered Office

Principal Office of the appointed Company Secretary

Accounting Requirement

Only required for
a) Labuan company opting to pay 3% per annum on the audited net profits; and

b) Licensed Labuan Companies

Management Office & Marketing Office

Labuan Trading Company may apply to establish marketing offices within Malaysia.

Labuan Investment Holding Company may apply to Co-locate its management and marketing offices in Kuala Lumpur, with irrevocable election for ITA taxation.

All Labuan companies with marketing or co-located offices must maintain a management office in Labuan island, except for insurance or takaful brokers and captives..

Annual Fee

Labuan Company : Annual Fee : USD800

Foreign Labuan Company Annual Fee : USD1,500

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