Why Choose Labuan for Your Business?
Labuan, Malaysia’s offshore financial hub, offers one of the most business-friendly environments in Asia. With low tax rates, full foreign ownership, and flexible regulations, a Labuan company is the perfect structure for entrepreneurs, investors, and global businesses looking for tax efficiency and international credibility.
At onecompany.my, we make your Labuan company registration fast, transparent, and fully compliant — so you can focus on growing your business while we handle the paperwork.
Processing steps and timing of your applications
Frequently Asked Question
What is a Labuan company?
A Labuan company is a business entity registered under the Labuan Companies Act 1990. It’s designed for international trade, investment, and business operations, offering low taxes, privacy, and full foreign ownership.
Who can set up a Labuan company?
Any foreign individual or corporate investor can establish a Labuan company. You don’t need to be a Malaysian citizen or have a local partner — it allows 100% foreign ownership.
What are the main advantages of a Labuan company?
Key benefits include 3% tax on audited profits, access to Malaysia’s banking system, no import/export duties, and the ability to open bank accounts in Malaysia or abroad.
Is a Labuan company considered offshore?
Yes. Labuan is Malaysia’s offshore financial center, meaning your company can conduct business internationally while enjoying tax incentives and regulatory flexibility.
Can a Labuan company operate in Malaysia?
Yes, but with some limitations. A Labuan company can deal with Malaysian residents only after notifying the Labuan Financial Services Authority (LFSA) and may be subject to domestic tax.
How do I register a Labuan company in Malaysia?
The process involves name reservation, preparing incorporation documents, appointing a Labuan-licensed secretary, and registering with the Labuan FSA. At onecompany.my, we manage the entire process for you.
How long does it take to register a Labuan company?
Typically, it takes 5–7 working days for incorporation once all documents are in order. Bank account opening may take an additional 1–2 weeks.
What documents are needed to register a Labuan company?
You’ll need:
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Passport copies of directors/shareholders
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Proof of address (utility bill/bank statement)
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Business activity description
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Proposed company name
Is a local director or shareholder required?
No. A Labuan company allows 100% foreign ownership. However, you must appoint a Labuan-licensed secretary and maintain a registered office in Labuan (we provide both).
What is the minimum capital requirement for a Labuan company?
There’s no minimum paid-up capital requirement — you can start with as little as USD 1, depending on your business activity.
Can I open a corporate bank account for my Labuan company?
Yes, you can open a corporate bank account with major Malaysian or international banks. We assist clients with bank introduction and document preparation for a smoother process.
What are the annual compliance requirements?
Every Labuan company must:
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File annual returns
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Maintain proper accounting records
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Submit audited financial statements (if applicable)
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Renew its annual license and registered office
Do I need to file tax returns for my Labuan company?
Yes. Even though tax is low (3% or exemption), you must still file annual tax returns with the Labuan Inland Revenue Authority (IRB).
Can I apply for a work visa under my Labuan company?
Absolutely. As a Labuan company owner or director, you can apply for a Labuan Work Visa (2 years, renewable) for yourself and your dependents.
Can a Labuan company be converted to an Sdn Bhd (private limited company)?
Yes, it’s possible through Labuan-to-Domestic conversion, but it requires specific regulatory approvals and procedures — our consultants can guide you through the process.