registration of legal entity

Cost of registration The cost of the second year Number of Directors Corporate tax rates Payment of Charter Capital Financial statements
2815.00 USD 1425.00 USD 1 3.00% 10000.00 No

Registration of an offshore company in Labuan

labuan.jpgLabuan became an offshore territory controlled by Malaysia in October 1990. In 2010, the Financial Services Authority of Labuan was established there, which coordinates offshore companies. The legislation of Malaysia introduced a number of amendments and clarifications that allowed to establish transparent business contacts with foreign business owners and acquire the status of IBFC (international financial and business services).

Labuan is an authoritative region for carrying out business operations in the opinionof international supervisory and controlling bodies.

The main legislative documents regulating economic affairs are as follows:

  • Offshore Banking 1990;
  • Labuan Offshore Trusts 1996;
  • Labuan Offshore Financial Services Authority 1996;
  • Labuan Offshore Securities Industry 1998;
  • Labuan Offshore Business Activity Tax 1990.

The process of registration


International investors interested in registering a company can choose from two forms of incorporation approved by the relevant law of jurisdiction (Companies Act since 1990):

  • trading companies;
  • holding (non-trading, non-commercial)companies.

Corresponding license is required for verification of trust, leasing, insurance and banking institutions of offshore type from the governmental bodies of Malaysia. Other types of activities are not licensed.

Offshore companies are divided into 4 categories depending on the form of liability:

  • Company Limited by Guarantee;
  • Private Unlimited Company;
  • Private Company Limited by Shares;
  • Public Company Limited by Shares.

Private firms are distinguished by the following advantages:

  • exemption from the submission of balance reporting;
  • the right to credit granting to own directors and third-party companies concerned;
  • minimum authorized capital is 2 ringgits;
  • opportunity to acquire the status of "exempt private company";
  • residence has no impact on the right to be a shareholder;
  • maximum number of shareholders is 50.

Depending on the type of company, relevant fixed fee (not exceeding 6,000 ringgits) is levied from it. The cost for selection and transcription of a unique name equals to 50 ringgits.

Local licensed trust organization is entitled to prepare registration certificates and acts, as well as be engaged in the process of incorporation. There must be at least one resident or non-resident director (natural or legal person) and local secretary. On average, registration processes last no more than a month. In Labuan, there are no specific requirements for the company's minimum capital, but there is a generally accepted rate of 10,000 USD. In fact, nominalamount of 500 USD is contributed to the corporate bank account.

Terms of taxation of the companies of Labuan

Non-commercial companies are not subject to tax. The foregoing include holdings-owners of assets in the form of securities, real estate and bank deposits.

Trading companies pay either a fixed tax of 20,000 ringgits, or 3% of net income (that assumes audit control).


Please, contact lawyers Law&Trust International for more detailed information and assistance in the issue of registering an offshore company in the territory of this jurisdiction.

Set of documents
  • Check with managers
Nominee director and shareholder
  • Check with managers

General information
Population78 000.00
CapitalLabuan Town
State polityconstitutional monarchy
Telephone code81 060
Place in the world in corruption56
locationThe Federal Territoty of Labuan is part of Malaysia. Labuan lies off the north-west coast of Borneo
Climatetropical climate, wich warm and humid; two seasonal monsoon periods (april to June and September to December); avg. maximum temperature (July) +23°; avg. minimum temperature (January) +15°
Literacy rate88.70%
Ethnic groupsMalay; Chinese, Filipino, Indians and Bugis are the minor part of population.
National currencyRinggit
USD exchange rate3.08
GDP per capita77
Official languageBahasa Malaysia
Credit ratingA-
The judiciarySupreme Court, Supreme Court, magistrates and session courts. Violations of the Shariah or adat under the jurisdiction of Islamic courts.
Executive authorityLabuan Office submitted to the Federal Government of Malaysia
Legislative authoritiesMalaysian Federal Parliament: Senate and House of Representatives
Corporate information
Opportunity to purchase ready-made companiesНет
Legal systemCommon Law
The use of the Cyrillic alphabet in the nameНет
Local registered officeДа
Indication of BPA in the nameLimited, Corp, BV, Pty, Ltd. If the name used by the Malaysian word "Berhad", must stand before him "(L)" to indicate that the company is registered in Labuan
Local registered agentДа
Shares and share capital
Standard currencyRinggit
The minimum amount of the issued capital1
Bearer sharesНет
The usual size of the authorized capitalUSD 10000
Usual nominal value of sharesUSD 1
Possibility to issue shares without par valueНет
Basic corporate tax rate3.00%
Capital gains taxНет
Currency controlНет
Corporate tax rates details3% or the sum of RM 20,000 (Malaysian Ringgit )
Stamp dutyНет
Director and Secretary
Minimum number of directors1
The requirement for residency directorsНет
Director of legal entities are allowedДа
The data reveals to the local agentДа
Data field to the public registryДа
The requirement for the presence of the SecretaryДа
Requirement to the residense of the SecretaryДа
Requirements to qualification of the SecretaryДа
Legal entity as the SecretaryНет
Shareholder and beneficiary
Minimum number of shareholders1
Data is entered in the public registerНет
Shareholders residency requirementНет
Information about the beneficiary is disclosedНет
Information may be disclosed to the local agentНет
Shareholders-legal entities are acceptableДа
The requirement for filing reportsНет
Open access to reportsНет
Statutory auditНет
The requirement for filing Annual ReturnНет
Open access to the Annual ReturnНет
The requirement for reportsНет
Treaty on avoidance of double taxation (States which signed)12
Membership in the OECDНет
Is it offshore according to Russian legislationДа
Trademark Registration
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