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MY · Incorporation

Company Formation
Labuan Company

Set up your Labuan Company for international holding, trading or asset structuring — with preferential tax treatment, no indirect taxes in Labuan, and full support from Strasia Group from setup to ongoing compliance.

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Labuan incorporation for international holding structures
Corporate Tax0% / 3%
Indirect Taxes0% in Labuan
Foreign Ownership100%
StructureTrust Company

Last updated: 04/2026

Overview

Why a Labuan Company?

A Labuan Company is one of the most attractive structures in Asia for international holding, investment, licensing and selected cross-border trading activities. Compared with a standard Malaysia Sdn Bhd, Labuan is designed for international business and offers a simpler, more specialised tax and structuring environment.

Strasia Group handles the entire setup through the required Labuan trust company structure — from name reservation and incorporation to registered office, secretary coordination, bank account support and ongoing compliance guidance.

Ideal for: International holding structures, treasury functions, licensing setups, family investment holding, and selected cross-border trading or service models. Not the first choice for a normal local operating business in mainland Malaysia.

Advantages of a Labuan Company

3% tax on qualifying trading profits (subject to substance)
0% tax on non-trading activities (holding of qualifying investments)
No indirect taxes in Labuan (no sales tax, service tax or import duties)
No minimum capital — minimum one share only
100% foreign ownership possible
Bank accounts in Labuan or abroad (subject to onboarding)
No foreign exchange controls when dealing with non-residents
Marketing office in Malaysia possible (subject to applicable rules)

Trading vs. Non-Trading in Labuan

Labuan non-trading activity generally refers to the holding of investments such as securities, stocks, shares, loans, deposits or other qualifying property — this can fall under 0% tax. Labuan trading activity includes management, licensing, trading and other active business activities — this is generally taxed at 3% of audited net profits.

In both cases, the applicable substance requirements must be met to access the preferential Labuan tax regime.

Incorporation Process

Your company is typically ready within a few days.

Consultation & Structure Review

We assess whether Labuan is the right structure for your goals — for example for holding, licensing, treasury or international trading — and compare it with a Malaysia Sdn Bhd where relevant.

Name Check & KYC

We coordinate the company name reservation and complete the required KYC and onboarding through the Labuan trust company.

Incorporation & Registered Office

Your Labuan Company is incorporated through the required Labuan trust company structure, which also provides the registered office and secretary function.

Bank Account Setup

We support the bank account process in Labuan or with selected international banking options, depending on your profile and business activity.

Tax & Ongoing Compliance

We coordinate the practical next steps, including accounting expectations, annual compliance and the substance-related requirements relevant to your activity.

Banking & Structuring

Labuan companies can open bank accounts in Labuan or outside Labuan, depending on the banking strategy and onboarding profile. Strasia Group helps structure the setup properly from the beginning — especially where holding, treasury, licensing or international ownership structures are involved.

For clients who need a more operational e-commerce or payment-heavy setup, we also assess whether Hong Kong, Singapore or a different jurisdiction may be the better fit.

When does a Labuan Company make sense?

A Labuan Company is usually best suited for international holding structures, treasury functions, licensing setups, family investment holding, and selected cross-border trading or service models. It is generally not the first choice for a normal local operating business in mainland Malaysia.

For local Malaysian operations, hiring in mainland Malaysia, or domestic trading into the Malaysian market, a Malaysia Sdn Bhd is often the better structure.

Frequently Asked Questions

Can a foreigner own 100% of a Labuan Company?
Yes. Foreign founders can establish Labuan companies. A minimum of one shareholder is required.
Is there a minimum capital requirement?
No general minimum capital is required. A minimum of one share is sufficient.
Do I need a local secretary or agent?
Yes. A Labuan company must be incorporated through a Labuan trust company, which also provides the secretary and registered office function.
What tax rate applies in Labuan?
This depends on the activity. Non-trading activity can fall under 0%, while qualifying trading activity is generally taxed at 3% of audited net profits, subject to the applicable substance requirements.
Can a Labuan Company be used as a holding company?
Yes. Labuan non-trading activity is specifically defined around the holding of investments such as securities, shares, loans and deposits.
Can a Labuan Company open a bank account?
Yes. Labuan companies can open foreign accounts with banks in Labuan or outside Labuan, subject to normal bank onboarding.
Does a Labuan Company need physical presence in Labuan?
To access the preferential Labuan tax regime, the company must meet the applicable substance requirements, including office, employees and operating expenditure depending on the activity.
Does a Labuan Company get full treaty access automatically?
This should not be presented as automatic. In some cases, companies elect to be taxed under the Income Tax Act 1967 instead, depending on the intended structure and tax position.
Is Labuan better than a Malaysia Sdn Bhd?
It depends on your goals. Labuan suits international structures, holding and licensing. A Malaysia Sdn Bhd is better for local operations, hiring in Malaysia and the domestic market. We help you choose the right structure for your specific situation.
What does incorporation with Strasia cost?
That depends on the structure you choose, banking and ongoing support — a blanket price would not help you. In the free initial consultation we establish what you actually need, and you then receive a binding fixed-price offer: one figure, all government fees shown transparently, no follow-up charges.

Ready to incorporate?

Free initial consultation — 60 minutes, no obligation.

Fixed-price offer after the initial call — government fees shown transparently.

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Tax Quick Reference

Non-Trading (Holding)0%
Trading (qualifying)3%
Capital Gains Tax0%
Indirect Taxes0% in Labuan
FX ControlsNone (Non-Residents)

Subject to substance requirements. No guarantee.

Labuan vs Malaysia Sdn Bhd

Tax0% / 3%17–24%
Indirect taxes0% in Labuan6% SST
Best forInternationalLocal
SubstanceRequiredStandard

Related Pages

Malaysia Sdn Bhd IncorporationHong Kong IncorporationSingapore IncorporationJurisdiction Finder
Comparison

Labuan vs Malaysia Sdn Bhd vs Hong Kong vs Singapore

Compare the key structures for international incorporation at a glance.

Corporate Tax0% / 3%
Capital Gains Tax0%
VAT / SST / GST0% in Labuan
Best use caseHolding, Treasury, Licensing
100% Foreign OwnershipYes
Minimum Capital1 share
Local substance expectationYes (required)
Bank account accessLimited
Best for holding structures✓ Yes
Best for operational businessNo
Best for payment processingNo
Best for relocation useLimited
1 / 4

Data as of 2026. Information subject to change. Substance requirements may vary.

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Free initial consultation — 60 minutes, no obligation.

We will assess whether Labuan, Malaysia Sdn Bhd, Hong Kong or Singapore is the better fit for your structure — before you incorporate.

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Our Office

Contact our Labuan, Malaysia Team

Our team is available for all questions regarding company formation, accounting, compliance, and visa & migration. Leave your details and we will get back to you within 24 hours.

Strasia Group — Labuan, Malaysia

Office

Unit B, Lot 49, 1st Floor
Block F, Lazenda Warehouse 3
Jalan Ranca-Ranca
87000 Federal Territory of Labuan
Malaysia

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