Comparison

Labuan compared with other jurisdictions

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.

We act as intermediary for companies formed in Brunei, Singapore, Hong Kong, the BVI, Seychelles, Samoa and elsewhere, so this comparison is not a sales pitch for one answer. Sometimes Labuan is the wrong choice.

The right jurisdiction depends on where your customers are, where your banking needs to sit, whether you need treaty access, and whether you personally want to live in the region.

Where Labuan fits

Labuan	3% on trading profit or 0% non-trading, conditional on substance. Malaysian treaty network. Real substance obligations. Offers a 2-year renewable residency route for you and your dependants. Audited accounts required
Singapore	Higher headline tax with a strong reputation, deep banking and an extensive treaty network. Higher operating costs. Substance expectations are real
Hong Kong	Territorial tax basis and excellent access to mainland China. Strong banking, though account opening has tightened considerably
BVI / Seychelles / Samoa	Low administrative burden and low cost, but no residency route, limited treaty access, and increasing friction with banks and counterparties. Excellent choice for investment holding entities and cross-border corporate structures
Brunei	18.5% corporate tax with pioneer-industry incentives of 5-20 years, no personal income tax and no VAT. Our second office, so we file there directly and it is suited for doing businesses domestically in Brunei

Frequently asked questions

Would you ever advise against Labuan?

Yes. If your activity is in scope for economic substance but you have no intention of employing anyone in Labuan, the 24% rate will apply and the structure will not deliver what you expect. In that case another jurisdiction — or a different structure entirely — is the better answer.

Can you form companies outside Labuan?

Yes. We act as intermediary for companies formed in Brunei, Singapore, Hong Kong, the BVI, Seychelles, Samoa and other jurisdictions, and we run our own office in Brunei.

Speak to us

We are the licensed trust company, so the advice and the filing come from the same place.

Talk to our Konsultan

Sources

The primary documents this page relies on, linked to the authority that issued them. If one has moved, tell us and we will correct it.

Labuan companies — Labuan FSA overview of the structure (opens in a new tab)
Labuan FSA · Regulator
The Labuan side of the comparison, stated by the regulator itself.
Acts administered by Labuan FSA — including the Labuan Companies Act 1990, the Labuan Business Activity Tax Act 1990 and the Labuan Financial Services and Securities Act 2010 (opens in a new tab)
Labuan FSA · Legislation

Last reviewed 4 August 2026

Whilst considerable care has been taken to ensure the information contained within this page is accurate and up to date, no warranty is given as to the accuracy or completeness of any information and no liability is accepted for any errors or omissions in such information. The information given in this page is based on our present understanding of the current laws, guidelines and regulations and may therefore be subject to change without notice.