Labuan Company Formation

North Borneo

The Federal Territory of Labuan consists of seven islands. It lies off the north-west coast of Borneo near the Malaysian state of Sabah. It derives its name from the Malay word for “harbour”. The main financial centre is Labuan town. Legislative power is in the hands of a bicameral parliament consisting of the Dewan Rakyat (House of Representatives) and the Dewan Negara (Senate). The Prime Minister and cabinet hold executive power. The official language is Bahasa Malay, English is widely spoken. Many of the world’s leading banks have branches in Labuan. It has developed as a major global offshore centre and in February 2010 the OECD listed added Labuan to the “white list”. The currency is the Ringgit (RM). Labuan has developed as a major global offshore centre and in February 2010 the OECD added the territory to the “white list”.

• TYPE OF COMPANY: Offshore Trading
• COMPANY LAW: Labuan Companies Act 1990
• SUFFIX TO DENOTE LIMITED LIABILITY: Limited; Incorporated; Corporation; S.A; or any internationally recognised equivalent
• DIRECTORS: One. Directors can be of any residency/nationality and either natural persons or corporate bodies – we can provide
• SECRETARY: Local resident secretary – we can provide
• SHAREHOLDERS: Corporate or Natural persons, minimum one – we can provide
• CLASSES OF SHARE: Registered
• CAPITAL REQUIREMENTS: US$1
• OWNERSHIP: 100% Foreign ownership allowed
• TIME TO INCORPORATE: 4 – 7 days
• REGISTERED OFFICE: Required in Labuan – we can provide
• ANNUAL RETURN: Yes
• ACCOUNTS: Yes (unaudited), no requirement to file them
• DISCLOSURE: No
• TAXATION: 3% or RM 20,000 (US$5800). Non trading or investment companies are not taxed on investment income
• GOVERNMENT LICENCE FEE: RM 1500
• DOUBLE TAXATION TREATIES: 68
• LANGUAGE OF DOCUMENTATION: English

** We can also incorporate Protected Cell Companies; Insurance and reinsurance companies and Takaful and Retakaful companies

If you would like further information on setting up a company in Labuan, the formation of a Labuan company, other Labuan corporate entities or require professional advice relating to taxation or the structuring and requirements of a Labuan company, please contact us. We can also provide advice on establishing a subsidiary, joint venture or foreign company to carry on business in Labuan.

We can provide a wide range of support and administration services, bank introductions, nominee directors, nominee shareholders, virtual offices, accountancy and legal services. We can also advise on compliance with all the regulatory and statutory requirements.