Labuan company (limited by shares, by guarantee or unlimited), Labuan Companies Act 1990Malaysia · Labuan IBFC
What it takes to form, own and run a private limited company in Malaysia · Labuan IBFC, and how its profit is taxed. Each figure links to the page it was read from.
This company type
At a glance
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The minimum number of shareholders in an offshore company is one (1).
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Every Labuan company shall have at least one director who may be a resident director.
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A minimum of one share is required. Apart from this there is no minimum capital requirement
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Tax shall be charged at the rate of three per cent for a year of assessment upon the chargeable profits of a Labuan entity
Form it
Who registers it
- Registry
- Formed without visiting
- Not stated
The registry’s and the law’s own pages do not mention it.
- Formed online
- Yes
What it takes to form
- A notary
- Not required
- A resident director
- Not required
- Paying up the capital
- Not in our records
Own it
Who may own and run it
- Directors
- At least 1 · none need live there · a company may be one
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Every Labuan company shall have at least one director who may be a resident director.
- Shareholders
- At least 1 · a company may be one · nominees allowed
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The minimum number of shareholders in an offshore company is one (1).
- Members
- At least 1 · one person may form it alone
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The minimum number of shareholders in an offshore company is one (1).
- A local company secretary
- Required
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Every Labuan company shall appoint one or more secretaries at least one of whom shall be a resident secretary.
- A local registered agent
- Required
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Every Labuan company shall at all times have a registered office in Labuan, which office shall be the principal office of a Labuan trust company.
Each year, at the registry
- Annual registry fee
- USD 1,000 (about €875)
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Annual Fees Labuan company USD 1,000
- Accounts on the public record
- No
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who can demonstrate to the Authority that he has a good reason for doing so
- Audit for a small company
- Not required
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A Labuan company or a foreign Labuan company shall not be required to appoint a person or persons to be the auditor or auditors of the company unless
- Audit
- A Labuan company is not required to appoint an auditor unless a Labuan financial-services law requires it, its articles so provide, or it makes an offer of securities under the Labuan securities acts (s.113(1)). Labuan business activity tax is charged on net profits in audited accounts (LBATA s.4(2)).
Important dates
When each obligation falls due, as the authority states it.
- Lodge a return of a change of director or secretary with the Authority
- 1 month after change of officers
With Labuan FSA (through the Labuan trust company)
Labuan Companies Act 1990 s.94(5)(b),(c): within one month after a person ceases to be, or becomes, a director or secretary.
- Lay audited or unaudited accounts before a meeting of members
- 9 months after the end of the accounting period
With Labuan FSA
s.111(1): accounts laid not more than nine months after the date to which they are made up. s.111(1A), (2): lodgements follow the meeting date, which the rule types cannot express, so only the nine-month limit is recorded.
What is public
- Directors
- To the authorities only
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who can demonstrate to the Authority that he has a good reason for doing so
- Beneficial owners
- To the authorities only
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who can demonstrate to the Authority that he has a good reason for doing so
Tax
Tax on profit
How this company type is taxed, which can differ from its place’s headline rate.
Varies · 0–3%+1 regime
Labuan business activity tax: 3% of the net profits in audited accounts for a Labuan trading activity; a non-trading activity is not charged tax under the Act; the entity may elect irrevocably to be taxed under the Income Tax Act 1967 (s.3A). Rate and conditions as stated in the Act; the substance requirements are in separate regulations not read here.
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Tax shall be charged at the rate of three per cent for a year of assessment upon the chargeable profits of a Labuan entity
Special regimes that may apply
- Labuan business activity tax — Labuan trading activity free zone · 3%
Labuan entities carrying on a Labuan business activity which is a Labuan trading activity Labuan Business Activity Tax Act 1990 (Act 445), section 4, as amended by Act A1614 and Act 833
Whether a company qualifies depends on its activity and conditions set in each statute.
- CFC rules in Malaysia
- Not in our records
Close it
Closing it
The other end, which most guides leave out.
Not in our records Route, Statutory fee: none of these is in our records for the Labuan company (limited by shares, by guarantee or unlimited), Labuan Companies Act 1990.
Every business in Malaysia · Labuan IBFC
Sales and consumption tax
- The tax
- SST (Sales and Service Tax)
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Rate of tax is amended to :- 6% (1 Sept 2018 – 29 Feb 2024) 8% (Start 1 Mac 2024) except F&B, Parking, Logistic & Telecommunications – 6%
- Standard rate
- 8%
Service tax is 8% from 1 March 2024, and 6% for food and beverage, parking, logistics and telecommunications. Sales tax on taxable goods is 10% unless the goods are listed for 5% or exemption; a foreign provider of digital services charges 6%.
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Rate of tax is amended to :- 6% (1 Sept 2018 – 29 Feb 2024) 8% (Start 1 Mac 2024) except F&B, Parking, Logistic & Telecommunications – 6%
- Other rates
- 6% Service tax on food and beverage, parking, logistics and telecommunications services, and on digital services supplied by a foreign registered person
- 5% Sales tax on goods listed in the Sales Tax (Rate of Tax) Order 2025
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Rate of tax is amended to :- 6% (1 Sept 2018 – 29 Feb 2024) 8% (Start 1 Mac 2024) except F&B, Parking, Logistic & Telecommunications – 6%
- Registration threshold
- MYR 500,000 · about €109,068
sales value of taxable goods for sales tax; service tax thresholds are set per service group, and a foreign digital service provider registers above RM500,000; 12 months
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Taxable goods manufacturers are required / liable to be registered when; SALES VALUE OF TAXABLE GOODS has exceeded RM500,000 for 12 months period
- Voluntary registration
- Yes
A manufacturer of taxable goods below the RM500,000 threshold may register voluntarily under section 14 of the Sales Tax Act 2018.
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Voluntary registration is permitted under Section 14 of the Sales Tax Act 2018, provided that you are engaged in the manufacturing of taxable goods and the total value has not reached the threshold amount of RM500,000.00.
- A foreign company
- The same threshold applies
A person outside Malaysia supplying digital services to consumers registers with the Royal Malaysian Customs Department once the value of those services passes RM500,000, and files for a three-month taxable period. Nothing read states whether a representative must be appointed, and the position for a foreign supplier of services other than digital services is not stated on these pages.
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A Foreign Service provider is liable to be registered if his total value of digital services provided to consumer has exceeded the prescribed threshold of Ringgit Malaysia five hundred thousand.
- Returns filed
- Depends on the business
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Returns must be filed once every two months (according to the taxable period).
- Tax authority
- Registration page read 2026-10-22
Payment and banking services
3 services name Malaysia on their own list: Paysera, Airwallex, Stripe. Each provider, and what a listing means.
Reference
Its name and code
- Kind
- Private limited companyDerived our grouping, the same words in every country
- Name in law
- Labuan company (limited by shares, by guarantee or unlimited), Labuan Companies Act 1990
- Identifier
- MY-LABUAN-COMPANYA form ISO 20275 does not list.