Offshore & Fiduciary Services
Labuan Company Incorporation
Monday - Friday
9.00am - 5.00pm
+6 087 421 644
+6 03 2161 3430
Lazenda Commercial Centre Phase 3
87000 F.T. Labuan, Malaysia
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Fees

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Click the link below to see the fee rates we have for Labuan Company.

  1. Fee schedules for formation of Labuan companies and other fees associated with it. Download
  2. Retail Charges for Miscellaneous Services – Labuan IBFC Download
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Readymade Companies

Law and Commerce applies the following pricing policies;

  1. Published Fees Policy: Law & Commerce adopts and practices a transparent fee policy. First of all most of our fees are published in our website. Secondly, before a work is to be performed it is our practice to send a written quotation and get our clients to agree with the quotation. Only after the quote has been agreed will an invoice be sent out. Our fees are generally divided as follows;
  2. Establishment Fees: This is almost always payable in the first year and covers formation of companies or trust, government fees, application for work permit, bank account introduction, out of pocket expenses, etc.
  3. Annual Fees: This is payable in the second and subsequent year and covers provision of registered address, company secretary, trustee and nominees, annual taxes or government fees, etc.
  4. Management Fees: Fees agreed with you prior to undertake any assignment based on pre-agreed scope of works. This normally covers provision of accounting, invoicing and audit services. Normally a management agreement is signed governing matters between our clients and us.
  5. Refund Policy: Refund in full less minor expenses may be claimed if payment has been made and we have not proceeded with setting a structure. If a structure has been set up, no refund can be made, either in full or partial.
  6. Advance Payment: Unless you are given credit (normally to established resellers) advance payment is required before any service can be delivered.
  7. Partial Payment: Partial payment for a service item is not allowed. For example we cannot allow partial payment for company formation. However, it is possible to arrange for staggered payment for a number of service items. For example, if you order company formation, bank introduction and work permit, we may break this into three separate invoices which you can pay stage by stage.
  8. “Work Related Fee”: Some services like application for work permit and application for bank a/c are “work related fee” and not “success related fee”. In other word we bill you for work we are doing in making application for you and not for guaranteeing the success of your application. There is no refund offered in full or partially if your application is rejected.
  9. Bank Charges: Unless otherwise agreed, invoice must be paid in full net of bank charges. If payment received is less than the invoice value, Law & Commerce reserves the right not to perform the services ordered until the discrepancy is rectified. Alternatively, Law & Commerce reserves the right to carry forward any shortfall to the second year billing.
  10. Late Payment: It is our policy to send annual fee invoices at least three months before due date to allow clients sufficient time to arrange payment. Any penalty incurred due to late payment is the responsibility of the clients.
  11. Cancellation of Service: A service ordered may be cancelled if the service has not been delivered in part or in full.
  12. Notice of Fee Increase: We strive to keep our clients informed of any changes in fee structure. Law & Commerce reserves the right to amend, increase or otherwise modify its fee structures at anytime with giving prior notice to its clients, if such increase is due to factors beyond its control.
  13. Unpublished Fees: Where certain fees are not published, please write in for full written quotation.
  14. Validity of Quotation: Unless otherwise stated, a written quotation is valid only for one month.

Full payment must be received before any service can be delivered. Payment can be made by telegraphic transfer, cheque or cash. Payment by cheque can be made to ‘Law & Commerce Trust Limited’

Payment by TT in US$ or RM can be made to:

  • A/C No. 8602-7835-5140 [$US]
  • A/C No. 8602-783-494 [RM]

Bank: CIMB Bank Berhad
Swift Code: CIBBMYKL
Beneficiary: Law & Commerce Trust Limited

Please read our Pricing Policy before making any payment.

Incorporate Now
Readymade Companies
Click here to download the document
International debit cards are commonly used to allow easy access to and use of funds. However it must be noted that its use is mostly for meeting personal expenses such as travels, entertainment and leisure. Working with a number of providers, we can assist you to apply not only single card for personal or family use, but also legal card programmes that will allow your company to issue unlimited number of cards to pre-approved or defined categories of employees or persons.

Here are just some of the most common ways to use the cards.
A cash card works like an ATM card. You can effortlessly and safely withdraw cash in millions of ATM machines around the world. Whether you are an active entrepreneur, participant in a different affiliate programs, or a consultant, your cash card simply allows you withdraw cash from your account wherever you may be.
  • Pay bills on the go, purchase flight ticket or make a hotel reservation or rent a car.
  • Provide a card to a family member, staff or associates.
  • Easily reloadable each time you need to give them fund.
  • Reload as often as you want up to the annual card load limit.
  • Save from paying high fees to transfer fund using company such as western union.
  • The card is a prepaid, reloadable travel cash card.
  • Safest and easiest way to carry your money during vacation.
  • Even if the card is lost or stolen, all of the funds are replaceable. Your Travel Card can be used at ATMs worldwide.
  • Always keep your Card and use it for your next travel. It’s better to be safe than sorry.
  • A prepaid, re-loadable card which your kids can use at any of the millions of ATM locations around the world.
  • Unlike a credit card, a prepaid card is limited to the amount of money that is loaded onto the card.
  • Further, parents can authorize others, family or friends to put money onto the Teen Card.
  • Definitely much more secure and faster way than giving cheque or cash.

Labuan Tax

Labuan tax treatment able a Labuan entity to avail itself of treaty benefits. In compliance with international taxation standards, a Labuan entity is subject to tax under Labuan Business Activity Tax Act 1990 (LBATA), and supplemented by parallel Labuan legislation for Labuan companies and trust.

Annual Tax Return needs to be filed with the Malaysian Director General of Inland Revenue by 31st March of that year of assessment.

At Law & Commerce, we assist in the preparation and submission of companies’ annual tax return submission to the Inland Revenue Board of Malaysia (IRB) for our clients.

Economic substance regulation (ESR) requires Labuan entities undertaking Labuan business activities to demonstrate that they carry out substantial economic activities in the jurisdictions, in accordance with the Labuan Business Activity Tax Act 1990 (Act 445)

The Labuan entities, as specified in the list shall, for the purpose of Labuan business activity have:

(i) an adequate number of full time employees in Labuan; and
(ii) an adequate amount of annual operating expenditure in Labuan,

as prescribed by the Minister by regulations made under this Act.

The number of full time employees (FTE) and annual operating expenditure (OPEX) varies depending on the type of business activity.

Non-fulfillment of the required ESR, will eliminate a Labuan entity from qualifying for the minimum tax rate of 3% for Trading entities; or 0% for Non-Trading entities.

The full list of Labuan ESR based on business activity can be referred here. 

A Labuan entity must carry out a business activity that is listed in the Substance Requirements [PU(A) 392 of 2018] for it to come under the ambit of LBATA.
The list of business activities are as follows:

Trading

 Labuan insurer, reinsurer, takaful and retakaful;

2. Labuan underwriting manager or underwriting takaful manager;

3. Labuan insurance manager or takaful manager;

4. Labuan insurance broker or takaful broker;

5. Labuan captive insurer/takaful;

6. Labuan international commodity trading company;

7. Labuan bank/investment bank/Islamic bank/Islamic investment bank;

8. Labuan trust company;

9. Labuan leasing or Islamic leasing;

10. Labuan credit token or Islamic credit token company;

11. Labuan development finance company or Islamic development company;

12. Labuan building credit or Islamic building credit company;

13. Labuan factoring or Islamic factoring company;

14. Labuan money broker or Islamic money broker;

15. Labuan fund manager;

16. Labuan securities licensee or Islamic securities licensee;

17. Labuan fund administrator;

18. Labuan company management;

19. Labuan international financial exchange;

20. Self-regulatory or Islamic self-regulatory organisations

23. Other trading entity — Labuan entity that carries out administrative, accounting and legal services including backroom processing, payroll services, talent management, agency services, insolvency related services and management services.

Non-Trading

21. Labuan entity that undertakes investment holding activities other than pure equity holding activities;

22. Labuan entity that undertakes pure equity holding activities.

Note: There is still uncertainty and ongoing dialogue on the treatment of category 23. It is best that tax agent advise be obtained if your intended business come under this category.

If your company is a trading company, it is liable to pay 3% or 24% tax on net audited profit – depending on whether the required substance regulation is met. It is a requirement for a trading company to maintain adequate financial records, as well as to have their account audited for tax submission.

For non-trading company, the tax rate is either 0% (not taxable) or 24% of the audited profit (if substance regulation is not complied).

However if the Labuan entity carries a business activity that is not listed in the regulation, tax filing has to be done under Income Tax Act 1967 (ITA) instead of Labuan Business Tax Activity Act 1990. An appointment of a tax agent is required for filing under this Act.
Summary of tax return for Labuan entity:

ACCOUNTING & AUDIT

Perhaps one of the areas which is most commonly overlooked and often neglected is the requirement to prepare accounting records and where applicable to audit the company’s accounts. In most cases even if a company is not required to pay tax under the prevailing laws there will normally be a requirement that the company prepares or maintains account which can clearly demonstrate the company’s financial position. Not to do so not only may amount to non-compliance but also compromise the company’s standing.

From our experience accounting work is rarely expensive and we work with a number of qualified accountants to provide accounting services to your company.

Through our network of qualified accountants, we can offer weekly, bi-weekly, monthly or yearly accounting regular reporting services. Our accounting services covers all aspects of accounting and bookkeeping, including:-

  • Entry of transactions.
  • General Ledger.
  • Assets /Equipment Ledgers.
  • Expenses Ledger.
  • Accounts Receivables.
  • Accounts Payables.
  • Ageing Report & Summaries.
  • Bank Reconciliation.
  • Financial Statements Preparation.
  • Trial Balance.
  • Income Statement (Profit & Loss).
  • Balance-sheet.
  • Cash Flow Statement.
  • Periodic/Annual Reports.

The accountants are familiar with most industry standard software applications, and if required, we can work with other applications also. With our knowledge and experience in Bookkeeping and Accounting procedures we provide our service for all your Bookkeeping and Accounting needs, whether computerized or manual.

We also work with a few well-established audit firms through which speedy and cost-effective auditing may be performed. If you require our recommendation of Labuan approved auditors, please do not hesitate to contact us.

Accounts & audit: A Labuan company must keep its financial records which clearly show its financial position. This would mean keeping accounts up to trial balance at least. As per Labuan FSA, a Labuan company must maintain proper accounting and other records in Labuan. These proper accounting and other records shall be kept at the registered office and shall be open at all times for inspection. A copy of an audited account shall be lodged with the Authority within certain period. 

Appointment of auditor: If your company is a trading company, or a non-trading company that does not comply with the required substance, an auditor must be appointed. This auditor must be “a Labuan approved auditor” as listed by Labuan FSA, which could be recommended on your request.

A Labuan company is now allowed to elect to be taxed under the ITA 1967 and pay tax at the rate that varies according to the year of assessment and the company’s paid up capital. This will enable the company to derive benefits from Malaysia’s numerous DTTs.

This election is irrevocable and if made will subject the company to all provisions under the ITA. Customers are advised to seek proper international tax advice before implementing this tax structure.

For companies that wish to elect for tax under ITA, an appointment of tax agent is required.

Summary of Tax, Accounting and Audit

Taxing statute Tax rate Payment deadline Is account required? Filing of account to IRB Filing of account to Labuan FSA
Labuan Trading entities LBATA 1990 3% or 24% On or before 31st March every year YES YES YES
Labuan Non-Trading entities  LBATA 1990 0% or 24% On or before 31st March every year YES  YES for 24% NO
Labuan entities electing for ITA 1967 ITA 1967 Tax rate varies with year of assessment and company’s paid up capital  Advance tax payable monthly YES  YES YES/NO
For a better understanding or clarification regarding the the tax return, accounting or audit requirement, please do not hesitate to contact our team.
It should be noted that there are many channels from which employment pass may be obtained in Malaysia. Further there many categories of employment passes and clients interested to apply must seek proper advice to ensure use the right channels and categories. The write up below only deals with application for employment pass using Labuan company.
With effect from 31st of March 2015 major changes had been introduced by the Labuan FSA on the procedures to apply for employment pass. These changes had made it very difficult and uneconomical to apply for an employment pass using a Labuan company. To see the changes in detail please see;

New Guidelines on Employment Pass;

  1. Licensed Entity Download
  2. Non-Licensed Entity Download
Recently we have noticed a significant drop in the number of applicants wanting to apply for employment passes. If you still wish to apply you must have real and sustainable business to conduct. May we remind you that NO APPLICATION SHOULD BE MADE IF AN APPLICANT DOES NOT HAVE ANY REAL BUSINESS BUT ONLY TO SECURE RESIDENCE. If you are currently holding a student pass in Malaysia, we are not interested to have you as an applicant for an employment pass unless you can prove that you have real business in your own country.

Major requirements:

  1. Minimum paid up capital if at least MYR250k or its equivalent in foreign currency
  2. Physical office in Labuan

In making any new application or renewal of employment pass, Law & Commerce is obligated to make sure that;

  1. application is genuine and not solely motivated by the desire take up residence in Malaysia,
  2. applicant’s business is not conducted with residents of Malaysia,
  3. application has a real business to be conducted, as evidenced by proven previous or current business,
  4. applicant has the financial resources to support not only his Labuan company but his family whilst living in Malaysia,
  5. applicant is fit and proper person for the post he is appointed,
  6. the applicant and or his Labuan company is not involved in illegal or undesirable activities
  7. applicant will not abuse his employment pass
  8. the Labuan company remains in compliance with the laws
  9. the expatriate registers for personal tax number, pays his personal income tax in Malaysia and file his personal tax return in Malaysia,
  10. the applicant stands a better chance to renew for the next term

To ensure that applicant is genuine and is not purely used as a tool to get residence, Law & Commerce requires the applicant/Labuan company to take the following mandatory services;

  1. Opening of corporate bank account
  2. Payment of monthly tax deduction for expatriate,
  3. Accounting service
  4. Audit service

A) Law & Commerce’s fee (estimate)

  1. Company formation: US$2750
  2. Opening of bank account: US$800
  3. Application for Employment Pass: US$1,500 per applicant
  4. Application for Dependant Pass: US$800 per dependent
  5. Renewal of Employment Pass: US$1,000 (after 2 years)
  6. Renewal of Dependant Pass: US$300 per dependent
  7. Annual accounting: US$600 min
  8. Annual audit: US$600 min unless choosing to pay flat tax
  9. Monthly tax payment and preparation of annual tax return: US$300
  10. Certification and translation cost and other disbursements, if any, will be bill separately.

B) Fees payable to Immigration:

  1. applicant pays RM600 for 2 years plus RM50 processing fee.
  2. dependant pays RM180.00 for 2 years plus RM50 processing fee
  3. journey performed fee, if required is RM500.00
Application for employment pass is now a complex issue. The procedures below serve as general guidance only. Different procedures may apply to different nationality.

An applicant must incorporate a Labuan company first and he provides documents/information below. Bank account must be opened simultaneously and once opened at least MYR250k or its equivalent in foreign currency be deposited. We are not able to submit your case UNTIL proof of such deposit is shown. The first stage involves applying for recommendation from the LFSA. If the LFSA recommends to the Immigration Department of Labuan that an employment pass be granted, then the second stage involves in submission of application to the Immigration Department of Labuan. If this application is approved, the applicant and dependant is any, are required to go to Labuan to have their passports endorsed. This approval, once granted is valid for 1 month.

A) Employment Pass

  1. Completed Forms DP10 & DP 11 and such other forms required by Malaysian Immigration
  2. clear copy passport of the applicant (only pages which have been stamped);
  3. passport having validity of not less than 18 months,
  4. address in Malaysia-this address is to be used as correspondence address, unless otherwise suggested,
  5. 4 copies passport size photographs; (white background)
  6. your C.V;
  7. your academic qualifications; (to be translated if not in English)
  8. contract of employment stating;
    • designation you are employed in or position in the company
    • your monthly remuneration – not less than RM10,000.00,
    • your duration of employment,
    • your acceptance of the employment.
    • letter from employer applying work permit for the employee;
    • Malaysian income tax number, if any,
  9. Letter of consent from the applicant to the academic/professional institution to give consent to Labuan FSA to verify the academic/professional certificate as and when required by Labuan FSA;
  10. Latest organizational chart
  11. Company profile detailing clearly at least the following;
    • Nature of business to be conducted,
    • Financial projection
    • Products or services to be offered,
    • Type of industries,
    • Type of customers,
    • Location of customers
    • Expected annual turnover for the next 3 years
  12. One professional reference from lawyer, accountant or other professional who have known you for at least 3 years and is familiar with your business,
    OR
  13. One business reference. The business reference may be from a supplier or customer who knows you or your business for the last 3 years.

Items 1, 8 & 9 will be prepared by Law & Commerce.

B) Dependant Pass

  1. Immigration forms to be completed
  2. clear copy of passport of your spouse/children;
  3. 2 copies of passport size photographs of spouse/children,
  4. marriage certificate/ birth certificate of children;
  5. where no marriage certificate is available, letter from own embassy conforming marriage;
  6. letter from the work permit applicant requesting for dependant pass.

Items 1 & 6 will be prepared by Law & Commerce.

IMPORTANT NOTES:

  1. Those documents that are in foreign languages other than English have to be translated and authenticated by own embassy.
  2. For those applicants requiring entry visa, please state the name of the Malaysia Embassy/ High Commissioner Office where they are to apply for the visa.
  3. Nationals from some countries may have to leave Malaysia and get their visa from nearest Malaysian Embassy. However this could be avoided by paying “journey performed” fee of RM500.00.
  4. Applicant must be at least 27 years of age at the time of application in order to qualify. Exemption is given for ICT related industry where minimum age of 24 is allowed PROVIDED written proof of at least two years working experience in related ICT industries can be shown.
  5. Successful applicant is required to Labuan, with his dependants, if applicable, once approval is given.
Incorporation of Labuan company takes 2-3 days after receiving complete documentation and payment. Corporate kit will take at least 1 week after company is incorporated.
Once Corporate kit is ready, opening of bank account takes at least 14 working days after submission of complete documentations. Some banks may take longer to approve.

Employment pass takes around 1 months to get recommendation from the LFSA and if there is no further documentation required. Client will need to book a appointment for travelling to Labuan to endorse your passport with Employment Pass sticker with Labuan Immigration. The date would need to be on either Tuesday, Wednesday or Thursday.

The trip to Labuan to endorse your passport with Employment Pass sticker can be done in just one day if the appointment are in the morning. If not, client will need to stay overnight to collect the passport the next day. However, this is subject to officer availability and the immigration in-house System condition.
International debit cards are commonly used to allow easy access to and use of funds. However it must be noted that its use is mostly for meeting personal expenses such as travels, entertainment and leisure. Working with a number of providers, we can assist you to apply not only single card for personal or family use, but also legal card programmes that will allow your company to issue unlimited number of cards to pre-approved or defined categories of employees or persons.

Here are just some of the most common ways to use the cards.
A cash card works like an ATM card. You can effortlessly and safely withdraw cash in millions of ATM machines around the world. Whether you are an active entrepreneur, participant in a different affiliate programs, or a consultant, your cash card simply allows you withdraw cash from your account wherever you may be.
  • Pay bills on the go, purchase flight ticket or make a hotel reservation or rent a car.
  • Provide a card to a family member, staff or associates.
  • Easily reloadable each time you need to give them fund.
  • Reload as often as you want up to the annual card load limit.
  • Save from paying high fees to transfer fund using company such as western union.
  • The card is a prepaid, reloadable travel cash card.
  • Safest and easiest way to carry your money during vacation.
  • Even if the card is lost or stolen, all of the funds are replaceable. Your Travel Card can be used at ATMs worldwide.
  • Always keep your Card and use it for your next travel. It’s better to be safe than sorry.
  • A prepaid, re-loadable card which your kids can use at any of the millions of ATM locations around the world.
  • Unlike a credit card, a prepaid card is limited to the amount of money that is loaded onto the card.
  • Further, parents can authorize others, family or friends to put money onto the Teen Card.
  • Definitely much more secure and faster way than giving cheque or cash.

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Law & Commerce Trust Limited

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LABUAN MAIN OFFICE

Level 2, Lot 19, Lazenda Commercial Centre Phase 3, 87000 Federal Territory of Labuan, Malaysia.

Kuala Lumpur Marketing Office

Block B, Level 5, Unit 2, Megan Avenue 2, No.12, Jalan Yap Kwan Seng,
50450 Kuala Lumpur, Malaysia.

Contact Us

  • +6 087 421 644

Business Operation Hours

9.00am to 5.00pm daily (except Saturday, Sunday and public holidays)

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Labuan Company Formation
Labuan Bank Account
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Accounting & Audit
Employment Pass

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