A Labuan company:
May be a company limited by shares or by guarantee or an unlimited company.
May participate in business activities and enjoy attractive tax benefits provided
under the Labuan Business Activity Tax Act 1990 (LBATA).
May carry out any business that is permitted in Malaysia in, from or through Labuan.
Would need to be licensed if it intends to undertake specific businesses as defined
under the Labuan Financial Services and Securities Act 2010 or the Labuan Islamic
Financial Services and Securities Act 2010, which may include the banking,
insurance/insurance-related, fund management, leasing, factoring and company
management businesses.
Residents and non-residents of Malaysia are permitted to establish Labuan companies.
Section 7(5) of the Labuan Companies Act 1990 (LCA) allows a Labuan company to deal
with a resident subject to the filing of notification to Labuan FSRP within 10
working days of the transaction.
Business transactions of Labuan companies must be made in currencies other than the
Malaysian Ringgit, except for the purpose of defraying administrative and statutory
expenses as well as receiving fees and commissions.
Labuan companies can own controlling stakes in a Malaysian domestic company and are
also allowed to undertake shipping operations with non-residents.
Please visit REEFS (Real Time Search of Company Status) in Labuan FSRP Coral to
search for companies in Labuan.
The general process of incorporating a Labuan company involves the following:
The applicant must be aware of the legislative framework of Labuan FSRP, and the
powers and duties of a Labuan company and its members under the Labuan Companies Act
1990 (LCA).
The applicant must appoint a licensed Labuan trust company, which should conduct its
own due diligence on the prospective client.
Reservation of a company name is subject to the following:
The client may choose any name, but Labuan FSRP has the discretion to reject the name
if it is undesirable or involves a name that the Registrar is not willing to accept.
The name shall contain any word or abbreviation thereof in the national language of
any country with an accurate and certified rendition of the name in the English
language provided.
Application fee for reservation of name is RM50.
Approval by the Registrar is within 24 hours, and the name will be reserved for a
period of three months.
The application for incorporation of a company must be accompanied by the following
documents and payments:
Memorandum and Articles of Association of the proposed company
Statutory declaration of compliance by the trust company
Consent to act as a director(s)
Individual forms filled up by each director; and
Relevant fees.
For activities that require licensing, prior approval to conduct such business must
be obtained before incorporation.
pon lodgement of complete documentation and payment of fees as well as clearance from the due diligence process conducted by Labuan FSRP, a Labuan company can be approved for incorporation or registration within 24 hours.
Labuan Financial Services Regulatory Provider. All Rights Reserved.