A Labuan company is a legal entity incorporated under the Labuan Companies Act 1990 in Labuan, Malaysia. It is commonly used for international trading, investment holding, fintech, and wealth management due to its tax-efficient and business-friendly environment.
Yes, Labuan companies allow 100% foreign ownership. Foreigners can serve as both directors and shareholders without any local equity requirement.
No, the entire incorporation process can be completed remotely through a licensed Labuan trust company.
Typically, it takes about 7–14 business days to incorporate a Labuan company, provided all required documents are complete and verified.
Yes, every Labuan company must maintain a registered office in Labuan, which is typically provided by a Labuan-licensed trust company.
The following activities qualify, provided substance requirements are met:
If a company does not fall under qualifying business activities or fails to meet the substance criteria, it will be taxed at the standard Malaysian corporate rate of 24%.
Most traditional banks require in-person identity verification. However, some fintech providers like Airwallex may allow remote account opening for Labuan entities.
A company secretary ensures regulatory compliance, maintains statutory records, and handles necessary filings with Labuan FSA on behalf of the company.
A business license is a legal permit authorizing operations within Malaysia. Depending on the nature and location of the business, this may include a premise license, signboard license, and sector-specific approvals.
Labuan offers a strategic location in Asia, a favorable tax regime, fast incorporation, and high confidentiality standards—making it ideal for international trading, holding structures, fintech, investment funds, and cross-border businesses.
Labuan is a Federal Territory of Malaysia, situated off the northwest coast of Borneo in the South China Sea. It lies close to the state of Sabah and is easily accessible by flights from Kuala Lumpur and Kota Kinabalu.
Money broking involves arranging deals between buyers and sellers in financial instruments, with the broker acting as an intermediary and earning brokerage fees. It does not include trading foreign currencies as a principal.
Yes. Transactions can only be conducted in foreign currencies. Dealings in Malaysian Ringgit are limited to covering administrative and statutory expenses. Money brokers also cannot transact with Malaysian residents, except with authorised dealers under the Exchange Control Act 195
Labuan money brokers are subject to a tax of 3% on audited net profits.
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