Labuan Companies

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Labuan Companies

A Labuan company:

May be a company limited by shares or by guarantee or an unlimited company.
Able to participate in business activities and enjoy attractive tax benefits provided under the Labuan Business Activity Tax Act 1990 (LBATA).
Able to out any business that is permitted in Malaysia in, from or through Labuan.
Would need to be licensed if it intends to undertake specific businesses as defined under the Labuan Financial Services and Securities (Amendment) Act 2022 (Act A1654) or the Labuan Islamic Financial Services and Securities (Amendment) Act 2022 (Act A1655), which may include the banking, insurance/insurance-related, fund management, leasing, factoring and company management businesses.

Residents and non-residents of Malaysia are permitted to establish Labuan companies. Business transactions of Labuan companies must be made in currencies other than the Malaysian Ringgit, except for the purpose of defraying administrative and statutory expenses as well as receiving fees and commissions. Labuan companies can own controlling stakes in a Malaysian domestic company.

Please visit REEFS (Real Time Search of Company Status) in Labuan FSA Coral to search for companies in Labuan.

Go to REEFS

Characteristics of a Labuan Company

It must have at least one director.
It must have a resident secretary.
There is no minimum capital and no authorised share capital requirements.
The shares issued shall have no par or nominal value.
Treasury shares are allowed.
It may issue shares of different classes and of different rights, but no bearer shares are allowed.
Amalgamation by merging two or more companies into one is allowed.
It is a requirement to have a registered office in Labuan which is the office of the resident secretary.
No person may divulge to others any information concerning the shareholding, management and any business, financial or other transactions of a Labuan company.

Registration Requirements

The LCA requires a Labuan company to employ the services of a trust company to act as its incorporation agent. The services offered by a trust company include, but are not limited to, the following:

Provides the registered office and resident secretary.
Performs the secretarial duties of the Labuan company including lodgement of any documents required under the LCA.
Makes available any of its trust officers for appointment as resident director and resident secretary.

COR@L System

COR@L System is an online core registration system owned by Labuan FSA’s Registrar Of Companies Unit (ROC). This is an online delivery system that promotes convenience and security to its users with real-time access. “COR@L” system is an acronym for “Corporate Online Registry at Labuan FSA”.

The COR@L system can be accessible via the secured encrypted internet connection on the following URL: https://www.lfsacoral.gov.my

Incorporation and Registration Procedures

The general process of incorporating a Labuan company involves the following:

The applicant must be aware of the legislative framework of Labuan IBFC, and the powers and duties of a Labuan company and its members under the Labuan Companies Act 1990 (LCA).
The applicant must appoint a licensed Labuan trust company, which should conduct its own due diligence on the prospective client.
Reservation of a company name is subject to the following:
- The client may choose any name, but Labuan FSA has the discretion to reject the name if it is undesirable or involves a name that the Registrar is not willing to accept.
- The name shall contain any word or abbreviation thereof in the national language of any country with an accurate and certified rendition of the name in the English language provided.
- Application fee for reservation of name is USD15.
- Approval by the Registrar is within 24 hours, and the name will be reserved for a period of three months.
The application for incorporation of a company must be accompanied by the following documents and payments:
- Memorandum and Articles of Association of the proposed company
- Statutory declaration of compliance by the trust company
- Consent to act as a director(s)
- Individual forms filled up by each director; and
- Relevant fees.

For activities that require licensing, prior approval to conduct such business must be obtained before incorporation.

Type of fees	Fees	Form
	General Fees
Application for the reservation of company name	USD15	9
	Incorporation Fees
Statutory declaration of compliance	Nil	6
Consent to act as director	Nil	24
Memorandum and Articles of Association (Labuan company)	Nil	Nil
	Paid-up Share Capital
RM50,000 and below	USD300	Nil
Exceeds RM50,000 but less than RM1 million	USD600	Nil
RM1 million and above	USD1,500	Nil
	Registration Fees
Statutory declaration by a Labuan trust company as an agent of a foreign Labuan company	Nil	33
Return on particulars and changes of directors and secretaries	Nil	25
Memorandum and Articles of Association	Nil	Nil
Registration of a foreign Labuan company	USD2,000	Nil
	Annual Fees
Labuan company	USD800	Nil
Foreign Labuan company	USD1,500	Nil

Approval process

Upon lodgement of complete documentation and payment of fees as well as clearance from the due diligence process conducted by Labuan FSA, a Labuan company can be approved for incorporation or registration within 24 hours.