Labuan

The Federal Territory of Labuan is part of Malaysia and comprises sever small islands. Labuan lies off the north-west coast of Borneo and is 8km away from the Malaysian state of Sabah. Labuan is located on the major shipping and air routes of the Asian Region. The island covers an area of approximately 92 sq km and has a population of about 78.000.  

The nation is economically strong and politically stable. Labuan has been developing as an international financial centre during the last twenty-five years. Under the guidance of LOFSA (the Labuan Offshore Financial Services Authority), the Malaysian authorities have invested heavily into the development of Labuan’s physical infrastructure and economic expansion.

The Malaysian legal system is based on the English model, wish special laws enacted and applicable to the offshore industry. Launched in 2010 Labuan has its own legislation and tax regime to enhance the competitiveness of the Labuan International Business and Financial Centre (IBFC). The IBFC offers a wide range of financial products and services and is a modern comprehensive solution striking the ideal balance between client confidentiality and stringent compliance as business transactions and practices are conducted in accordance with the international standards and practices.

Labuan offers a business friendly environment, a simple and attractive tax system, modern and internationally recognised legal framework which is enforced by its regulator, the Labuan Financial Services Authority (FSA). As a well-regulated jurisdiction, Labuan IBFC remains compliant to all international protocols on exchange of information. The island is not on any black list by international organisations or other countries.

Key Corporate Features & Requirments

• Type of entity: Non-trading/ Trading      
• Type of law: Common   
• Shelf Companies Available: No 
• Time to establish a new company: 8 days             
• Minimum government fees (excluding taxation): RM1500               
• Corporate taxation: Non-trading: Nil/ Trading: 3% or RM20.000 
• Double taxation treaty access: Non-trading: No/ Trading: Yes     

• Standard currency: US$
• Permitted currencies: Any except RM   
• Minimum paid up: US$1               
• Usually authorized capital: US$1 - US$1.400        

• Minimum number: One               
• Local required: No          
• Publicly accessible records: No  
• Location of meetings: Anywhere             

• Minimum number: One               
• Publicly accessible records: Yes 
• Location of meetings: Anywhere             

• Required: Yes   
• Local or qualified: Local 

• Requirement to prepare: Yes    
• Audit requirements: No               
• Requirement to file accounts: No            
• Publicly accessible accounts: No               

• Requirement to file annual return: Yes 
• Change in domicile permitted: Yes