Effortless Labuan Company Incorporation
Set Up Your Global Business
in Just a Few Clicks
Online Registration
Register your Labuan company from anywhere in the world.
Client Care Services
Hassle-free multi-currency business account setup.
After-Sales Support
Ongoing assistance from our Labuan incorporation specialists to ensure smooth operations.
How it Works (Steps):
1. Submit Your Company Details
Fill out your information online:
Click Here
2. Sign Documents
Receive and sign pre-incorporation documents within 2 days
3. Quick KYC Verification
A 2-minute call for director/shareholder verification
4. Official Registration
We handle the submission to the Labuan Companies Registry
5. Official Registration
Get seamless access to banking for your business
Must- know Requirements
Minimum 1 Director & Shareholder
Can be the same person
100% Foreign Ownership Permitted
No local partner required
Paid-Up Capital
Minimum one share in any
foreign currency denomination
Processing Time
7-14 business days
Upon submission of complete documents
Audit Requirement
Mandatory for active companies
Resident Secretary
Required for company compliance
Why Labuan?
Labuan International Business and Financial Centre (Labuan IBFC) has thrived as a global business hub since 1990, offering a tax-efficient regime, regulatory flexibility, and a business-friendly environment. Its internationally recognized legal framework, enforced by the Labuan Financial Services Authority (Labuan FSA), ensures compliance with global standards while fostering innovation and growth.
Flexible Tax System
- Only 3% tax on net profits for Labuan business activities companies
- Zero tax for investment holding companies
- No withholding tax on dividends or interest
Strategic Location
Located in Asia’s financial hub, close to Hong Kong, China, Japan, Korea, India, and ASEAN
Low Operational Costs & Skilled Workforce
- Lower costs compared to most Asian cities
- English-speaking, educated workforce
- Labuan work permits available for foreign business owners
100% Foreign Ownership Allowed
- No local partner required—full ownership allowed under Labuan’s business-friendly laws
- Low cost for substance creation & business operations
Embracing Digitalization
Labuan has positioned itself at the forefront of the digital era by implementing guidelines for the Digital Governance Framework. As of 2023, Labuan boasts 61 license holders for digital financial services, anticipating ongoing expansion and solidifying its status as a hub for digital business growth in Asia.
FAQ
1. What is IBFC?
Labuan International Business and Financial Centre, IBFC is a Malaysian financial hub offering tax advantages, a robust regulatory framework, and diverse services like banking, insurance, and Islamic finance. Its strategic location in Southeast Asia, ease of doing business, and global connectivity make it significant for attracting international investment and fostering economic growth.
2. What is a Labuan company?
A Labuan company is an entity incorporated under the Labuan Companies Act 1990 in Labuan, Malaysia.
3. Can foreigners fully own a Labuan company?
Yes, Labuan allows full foreign ownership, enabling foreigners to serve as both directors and shareholders.
4. Is physical presence in Labuan required for company incorporation?
5. How long does the incorporation process take?
6. Is a registered office address in Labuan mandatory?
Yes, a registered office in Labuan is required for compliance and shall be at a Labuan trust company.
7. What are the main benefits of incorporating a company in Labuan?
- 100% foreign ownership allowed
- No withholding tax on dividends or interest payments to non-residents
- No stamp duty on business instruments
- No foreign exchange controls and full profit repatriation
- No capital gains tax, inheritance tax, GST, SST, or VAT
- Full tax exemption on director’s fees for foreigners
- Access to Double Taxation Avoidance (DTA) treaties with over 70 countries
- Low tax regime
- Ease of incorporation and access to international banking
8. Can a Labuan company open a bank account remotely?
While most banks require a physical meeting with company directors and authorised signatory, yet, some fintech solutions provider or payment facilitator like Airwallex offer remote account opening.
9. What are the advantages of a multi-currencies e-wallet account?
- Online account opening
- Seamlessly collect & store funds in multiple currencies
- Cheaper international transfers
- Streamlined foreign exchange management
10. Which Labuan business activities qualify for the 3% tax rate while meeting substance requirements for a Labuan company?
- Administrative services
- Accounting services
- Legal services
- Backroom processing services
- Payroll services
- Talent management services
- Agency services
- Insolvency related services
- Management services
11. What is the tax structure for Labuan companies?
- Labuan business activities companies – 3% tax on audited net profits, provided substance requirements are met for Labuan business activity.
- Non-trading (investment holding) companies – 0% tax with the submission of an annual management account, provided substance requirements are met.
12. What happens if I fail to meet the substance requirements, or my business activity is not in the listed categories?
If a company fails to meet either the substance requirements or does not fall under the listed business activities, it will be subject to a 24% tax rate.
13. What is the substance requirement?
14. What is the role of a company secretary in a Labuan company?
A company secretary ensures:
- Compliance with Labuan regulations
- Maintenance of statutory records
- Submission of necessary filings to LFSA
15. Is Labuan company required to do beneficiary ownership reporting?
16. What is a Significant Controller?
A Significant Controller is an individual or entity holding substantial control over a company, typically defined as owning at least 25% of shares or voting rights.
17. Who can be a Significant Controller?
Any individual or legal entity meeting the ownership or control threshold qualifies as a Significant Controller.
18. When should I file my first audit report and tax return?
A Labuan company must file its audited financial report & submit its tax return within seven months after the financial year end.
19. Can I handle accounting and auditing by myself?
Yes, you can manage your company’s accounting. However, the audit must be conducted by an auditor approved by LFSA.
20. What tax and accounting services does BBS TRUST provide?
- Work Permit
- HR & Payroll
- Serviced Office
- Tax Filing
- Accounting
21. Why Choose Airwallex?
As a global fintech company, Airwallex provides innovative payment and financial solutions tailored to support businesses in navigating international markets efficiently.
22. What services does Airwallex provide for businesses in Labuan?
Airwallex offers a comprehensive financial solution for Labuan entities, including:
- Global Business Accounts: Open multi-currency accounts to receive, hold and manage funds in USD, HKD, EUR, GBP, CNY, SGD, and more.
- Cross-border Payments: Send payments internationally with competitive FX rates via local payment rails, avoiding Swift which is both costly & slow.
- Local and Global Collections: Collect funds easily from customers worldwide through local payment rails.
- FX and Treasury Solutions: Access wholesale exchange rates and optimize foreign currency exposure.
23. How does Airwallex compare to traditional banks?
Unlike traditional banks, Airwallex provides faster, more flexible, and cost-efficient financial services. Key advantages include:
✅ Faster international transfers (often same-day)
✅ No minimum balance requirements
✅ Significantly lower FX conversion costs
✅ Seamless digital onboarding (no need for physical branch visits)
24. How secure is using Airwallex?
Airwallex prioritizes security and compliance at every level. Airwallex uses bank-grade security including end-to-end encryption, multi-factor authentication (MFA), and continuous fraud monitoring.
25. How does Airwallex charge?
Airwallex operates on a transparent, fee-based model:
- No account opening or maintenance fees
- Free transfers (for international transfers supported by our network of local rails)
- Simple deposit fee of 0.3%
- Competitive FX rates (2-3 times cheaper than banks)
- No hidden fees (all transaction fees are displayed before executing a transfer or trade)
26. Are there any transactions or account limits with Airwallex?
No, there are no transactions or account limits for Labuan entities. Businesses can send and receive funds freely, subject to standard compliance and regulatory checks.
27. Is Airwallex regulated, and by whom?
Yes, Airwallex holds financial licenses in multiple jurisdictions around the world. For a full list of regulatory authorities and licenses, please visit: https://help.airwallex.com/hc/en-gb/articles/900001757106-How-is-Airwallex-licensed-and-regulated
Why Choose BBS TRUST INT’L LIMITED
Industry-Leading Expertise
With over 25 years of professional experience, we have established ourselves as a trusted authority in offshore business solutions.
Proven Track Record
Our team has successfully handled 300+ license applications, ensuring smooth approvals across various offshore jurisdictions.
Comprehensive Business Advisory
We provide end-to-end solutions, from company formation and licensing to compliance, banking, and taxation—helping you navigate the complexities of offshore business seamlessly.
Global Reach, Local Expertise
As partners with 50+ jurisdictions worldwide, we offer tailored solutions that align with your business goals and regulatory requirements.
Streamlined, Stress-Free Process
We simplify complex procedures, ensuring a hassle-free application experience, so you can focus on growing your business.
Trusted Advisors
Our clients rely on us for strategic guidance and confidentiality, backed by a team of seasoned professionals dedicated to your success.
One-Stop Offshore Solutions
From incorporation to ongoing compliance, we are your all-in-one platform for offshore business needs—saving you time, effort, and resources.
