Labuan FSA licensed trust company — LT0072
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Labuan IBFC
Labuan is Malaysia's own International Business and Financial Centre — a substance-based midshore jurisdiction with a 3% trading tax rate, a full treaty network, and a residency route into Malaysia.
Labuan is one of the three federal territories of Malaysia, located off the north-east coast of Borneo in East Malaysia. Borneo comprises territories belonging to three sovereign nations — Brunei, Indonesia and Malaysia.
The territory consists of seven small islands, of which Labuan Island is the largest. The weather is tropical, and the main island benefits from good beaches and excellent hotel facilities, making it a practical place for both business and pleasure. The population is approximately 100,000, and people are mostly bilingual — Malay is the national language, but English is the main language of business.
Labuan sits in the heart of the ASEAN community. The main island is accessible by direct flight from Kuala Lumpur, Kota Kinabalu and Miri, and from Brunei by sea.
The resources we maintain for clients and advisers. Each one carries a last-reviewed date, because in this jurisdiction the rules move.
A Labuan company is governed by the Labuan Companies Act 1990, regulated by Labuan FSA, can be incorporated in three business days, and is taxed at 3%, 0% or 24% depending on its activity and whether it meets economic substance requirements.
Labuan trading companies listed under the Schedule pay 3% of net audited profit and non-trading companies pay 0% — but only if economic substance requirements are met; otherwise the rate is a flat 24%.
Answer four questions about your Labuan entity and this tool tells you whether the economic substance requirements apply, what the minimum employee and expenditure levels are, and which tax rate follows.
The statutory fees for a Labuan company are modest and public, but the real annual cost is driven by economic substance — the full-time employees and operating expenditure you must maintain in Labuan to keep the preferential tax rate.
Labuan's distinctive combination is a 3% treaty-accessible rate with genuine substance requirements and a residency route — where the classic offshore jurisdictions offer no residency and increasing banking friction.
Ready when you are
Talk to the firm that holds the licence.