- Company including Protected Cell Company
- Partnership
- Foundation
Labuan IBFC offers a wide range of financial products & services. The above are examples of permitted activities.
Company (LTC)
Manager
Manager
LTC shall advise the required documents and process for non-license and license applications.
(to be guided by LTC)
- Economic substance
- Statutory account opening (e.g. tax file/EPF)
- To observe statutory reporting requirements by Labuan FSA|
- To comply with taxation obligations. The corporate tax rate is 3% for trading activities and 0% for non-trading activities. 24% will be taxed if the Labuan entities do not qualify to undertake Labuan business activity.
- Annual tax return needs to be filed with the Malaysian Inland Revenue Board (IRB) by 31 March or at any extended period allowed by the IRB for each year of assessment
Fact-Check
Items
Description
Regulator
Labuan Financial Services Authority - www.labuanfsa.gov.my
Type of company
Trading / Non-trading
Trading / Non-trading
Common
Shelf company availability
No. Economic substance is required in Labuan island depending on the type of business activity
Taxation
0% (Labuan non-trading activities)
3% (Labuan trading activities)
Ownership
No shareholding restriction. Allowing for 100% foreign ownership
Permitted currency of capital
Any currency
Company secretary
To engage from the list of LTC licensed by Labuan FSA
To engage from the list of LTC licensed by Labuan FSA
Able to access Malaysia’s 70+ double taxation agreements*
* Labuan entities enjoy the benefits of most of Malaysia’s tax treaties, but certain treaties have specifically excluded Labuan entities from treaty benefits
