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Labuan Financial Services Authority (Processing And Approval Fees) (Labuan Financial Institutions) Order 2012 |
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Labuan Business Activity Tax (Forms) Regulations 2013 |
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Labuan Companies Regulations 2010 – PU (A) 414/2010 |
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Labuan Trusts Regulations 2010 – P.U.(A) 415/2010 |
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Labuan Foundations Regulations 2010 (P.U (A) 418/2010) |
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Labuan Limited Partnerships and Limited Liability Partnerships Regulations 2010 (P.U. (A) 419/2010) |
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Labuan Financial Services and Securities Regulations 2010 (P.U (A) 416/2010) |
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Labuan Islamic Financial Services and Securities Regulations 2010 – PU(A) 417/2010 |
| Labuan Offshore Business Activity Tax (Forms) Regulations 1991 [Revoked By P.U.(A) 224/2013] – P.U.(A) 157/91 | |
| Labuan Offshore Trusts Regulations 1999 – P.U.(A) 164/99. [Revoked by P.U.(A) 415/2010] | |
| Offshore Companies Regulations 1990 [Revoked By P.U.(A) 414/2010] – P.U.(A) 324/90 | |
| Labuan Offshore Financial Services Authority (Annual Fee for Management and Operation Office of Labuan Holding Company in Kuala Lumpur) Order 2009 | |
| Labuan Offshore Financial Services Authority (Annual Fee for Marketing Offices Outside Labuan) (Offshore Financial Institutions) Order 2006 | |
| Labuan Financial Services Authority (Annual Fee for Co-Location Office) (Labuan Insurance and Takaful Licensee) Order 2011 |
Since its inception in 1990, many laws on Labuan had been passed, amended and repealed. To this, equal numbers of guidelines, rules and circulars had been passed, amended and removed. Below are the list of almost if not all guidelines on doing business in Labuan, arranged based on category of industries.
For a complete and latest updated guidelines in Labuan IBFC, kindly refer here.
| Who can use? | Local and foreign | By foreign corporation only | By foreign corporation only | Local and foreign | |
| What business can be conducted? | Can be used to in the local business in Malaysia, for example consulting, manufacturing, restaurant, travel agency, telecommunication, etc. Can be 100% foreign owned subsidiary. | Not allowed to conduct business in Malaysia. Only suitable for foreign company intending to study Malaysian market before actually investing in full, to co-ordinate business activities, to identify source of raw material, etc. | Can do most type of local business through the branch. | ||
| Entity | Private limited company | Non-entity | Branch | ||
| 1 | What is the Registering Body? | Company Commission of Malaysia | Ministry of International Trade & Industry | Company Commission of Malaysia | Labuan FSA |
| 2 | Who do I see to register? | Company secretary | Can register on your own or appoint consultant | Company secretary | Trust company in Labuan |
| 3 | How long does it take to register? | 1 day | A few weeks | 2-3 days | 1 day |
| How long is duration? | No limit | Usually approval is given for 2 years only | No limit | No limit | |
| 4 | What is the minimum number of director? | Min 2 | N/A | N/A but may appoint local director | Min 1 |
| 5 | What is the minimum number of shareholder? | Min 2 | N/A | N/A | Min 1 |
| 6 | Local shareholder? | No required unless when doing business with government or government controlled companies | N/A | N/A | No |
| 7 | Local director? | No, but if all directors are foreign, must have local addresses in Malaysia | N/A | May appoint local branch director | No |
| 8 | Can I do business with Malaysian residents? | Yes | NO | Yes | NO |
| 9 | Size of paid up capital required? | No unless applying for employment pass, in which case min is MYR500k | N/A but to qualify to apply, foreign co MUST have at least MYR2m annual turn over | N/A | No unless applying for employment pass, in which case min is MYR250k |
| 10 | Is physical office required? | Yes | Yes | Yes | NO |
| 11 | Employment of local | Not required | Not required | Not required | Not necessary |
| 12 | Opening of FX a/c | Yes | Yes, expenses only | Yes | Yes |
| 13 | Opening of RM a/c | Yes | Yes, expenses only | Yes | Yes |
| 14 | Buy or acquire lease of property in Malaysia? | Yes | No | Yes | Yes, but only for own use |
| Taxation | accounting & audit | ||||
| 15 | Who is the Tax Authority? | Inland Revenue Board of Malaysia | Not subject to tax | Inland Revenue Board of Malaysia | Inland Revenue Board of Malaysia |
| 16 | Corporate tax rate | Varies with year of assessment and company’s paid up capital | NA | 26% of branch profit | 3% of audited net profits for trading activity and zero percent for non-trading activity (provided that the tax substantial activity requirements is complied) |
| 17 | Taxation basis | Current year basis | N/A | Current year | Preceding year basis |
| 18 | Accounting and audit | Mandatory | N/A | Mandatory | Mandatory |
| Costs | |||||
| 19 | Professional fee 1st year | MYR3500-MYR7000 | MYR5000 min | MYR5000 min | USD3500 |
| 20 | Annual maintenance | MYR2000 excluding accounting, audit and tax compliance | N/A | MYR2000 excluding accounting, audit and tax compliance | Min USD1850 excluding accounting, audit and tax compliance |
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Establishing an operational office is a key requirement for a Labuan company, particularly if the company aims to take advantage of the favorable low tax treatment in Labuan or seeks to apply for a Labuan employment visa. In today’s landscape, it’s clear that many companies embrace a flexible or remote working culture, making the traditional large office space less essential.
We work alongside a managed workspace provider in Labuan and Kuala Lumpur to guarantee our clients access to comprehensive office services for their convenience. The office is equipped with a receptionist, internet access, a pantry with free flows of coffee, and a community space for interaction and the exchange of business ideas.
If you’re looking to establish a contemporary physical office with a prestigious address in Labuan or even in Kuala Lumpur, contact our team today. Relax and let us handle all the arrangements and paperwork for your office tenancy. We’ll ensure you secure the finest office with a stunning view in the city!
High Commission of the Federal Republic of Nigeria
85 Jalan Ampang Hilir, 55000 Kuala Lumpur
Tel: 03 4251 7843, 03 4251 8512
Registrar General may register a ship as a Malaysian International Ship, if it owned by a corporation that satisfies the following requirements:
The owner of the ship shall, before applying for a ship to be registered, appoint a ship manager whom shall be :
Upon due acceptance of the above documents, the Registrar will allocate an official number to the vessel.
Marine surveys are conducted by Surveyor of Ships working under the direction of the Surveyor-General who may also authorized classification societies to conduct surveys on his behalf.
The following are recognized classification societies for Malaysia International Ship Registry;
My Expat (MM2H) Sdn Bhd is one of the many authorised MM2H agents that is licensed by the Ministry of Tourism, Malaysia. Whilst we have no affiliation, link or relationship with My Expat (MM2H) Sdn Bhd, we regularly recommend it due to its competitive pricing and speedy service.
