A Labuan company is an offshore entity registered in Malaysia that provides significant financial and operational benefits for international investors. It’s an ideal structure for those seeking efficient tax management, global market access, and flexible business ownership.
3% on trading profits or zero tax for holding activities.
No local partner required.
Simple auditing and reporting.
Open corporate accounts with international banks.
We can help acquire visas for your family under your company.
Labuan offers easy access to major Asian markets and a stable business environment.
Needed only for tax reduction from 24% to 3%. Not mandatory for company formation or visa purposes.
initial and annual expenses are higher compared to local entities.
Effective 1st January 2019, any Labuan entity engaged in the following business activities must meet ESR conditions to qualify for the 3% tax rate
Note: Entities that fail to meet these requirements will be taxed at 24% under the Labuan Business Activity Tax Act (LBATA)
A legally established Malaysian offshore entity incorporated under the Labuan Companies Act 1990, ideal for international business.
Labuan entities offer a highly competitive 3% tax on net trading profits and 0% on holding activities.
Foreign investors are granted 100% ownership and full absolute control over the enterprise.
To qualify, a company must demonstrate “Economic Substance” by maintaining a minimum of MYR 50,000 in annual operating expenditure and employing at least two full-time staff members in Labuan. Failing this results in the standard 24% tax rate.
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