01 / LABUAN COMPANY
Why entrepreneurs choose Labuan.
Foreign ownership
Possible without a local shareholder, subject to the activity and licensing requirements.
Trading tax with substance
Qualifying Labuan trading activities are taxed at 3% of audited net profits when the required local operations, staff and spending are maintained. Failure to meet the applicable substance requirements can result in a 24% rate.
Employment Pass
A work pass tied to the approved role and the company’s continuing eligibility. Renewal and duration depend on approval and Malaysia’s applicable employment-pass limits.
Planned together
Eligible family members can seek the appropriate immigration passes.
02 / LABUAN COMPANY
Labuan company and director’s work pass essentials.
A real business is the key. The pass depends on your company staying active and compliant.
| Item | Requirement |
|---|---|
| Company | At least 1 director and 1 shareholder, 100% foreign-owned |
| Office and secretary | Provided through a licensed Labuan trust company, a regulated firm that helps incorporate and administer Labuan companies |
| Substance | Real operations in Labuan, with staff and annual local spending appropriate to the business activity. The applicable minimums must be confirmed for your company. |
| Director's salary | At least RM10,000 a month |
| Pass | Labuan Employment Pass, renewable subject to approval and applicable duration limits |
| Family | Spouse and eligible children may apply for dependant passes, subject to immigration conditions |
| Tax | 3% on audited net profits from qualifying trading activities; 0% for qualifying non-trading activities. Failure to meet applicable substance requirements can result in 24% tax. |
| Regulator | Labuan Financial Services Authority (Labuan FSA), the statutory regulator for Labuan’s international business and financial centre |
Sources: Labuan FSA company and work-permit guidance, its June 2026 clarification, and official tax guidance. Checked 4 November 2026. RM means Malaysian ringgit, the local currency. The trust company confirms the activity classification, staffing, spending and pass requirements before you commit.
03 / LABUAN COMPANY
Labuan company requirements.
- A real business: Labuan suits genuine international trading, consulting or holding activity, not residency alone.
- Office in Labuan: Plan for a genuine operating presence in Labuan. Any marketing or co-located office elsewhere requires the relevant approval and does not automatically replace the applicable Labuan substance requirements.
- Local staff: Full-time employees who physically work in Labuan where required by your activity’s substance rules. Staffing and annual spending minimums depend on the business activity; we confirm them with the trust company.
- Director's salary: At least RM10,000 a month to qualify for the Employment Pass.
- Annual compliance: Yearly Labuan FSA fees, audited accounts and tax filings to keep the company active.
- Documents: Passport, CV and qualifications, business plan, and company incorporation papers.
04 / LABUAN COMPANY
Plan your business costs.
Your budget covers company setup, ongoing operations and professional support. We confirm the scope and costs before you commit.
SETUP + ANNUAL FEES
Company administration
Registration, trust company and secretarial fees, plus annual regulatory fees.
ONGOING OPERATING COSTS
Running your business
Office space, employees and operating expenses required for your business activity.
OUR SERVICE FEE
Agreed in writing.
A clear quote outlining our services and the costs payable separately.
05 / LABUAN COMPANY
From company setup to your move.
We coordinate each stage with your licensed Labuan trust company, with approvals confirmed along the way.
Confirm the right fit
Review your business, budget and preferred location before choosing this route.
Register your company
The licensed trust company handles incorporation with Labuan FSA.
Set up your operations
Arrange the office, staffing and banking needed for your business activity.
Apply for your work pass
The trust company coordinates your application through Labuan FSA, subject to approval.
Plan your family’s move
Arrange eligible family passes and a home that fits your approved location and pass conditions.
06 / LABUAN COMPANY
Your Labuan setup, coordinated end to end
We coordinate with licensed Labuan trust company partners on incorporation, work-pass applications and your move. The trust company and relevant authorities handle the regulated filings and approvals.
- Business structure check
- Incorporation coordination
- Office and staff setup guidance
- Bank account support
- Work-pass application coordination with the trust company
- Dependant pass application coordination
- Home search aligned with your approved location
- Annual renewal reminders
07 / LABUAN COMPANY
Labuan company questions, answered plainly.
Can I live in Kuala Lumpur with a Labuan company?
Not automatically. Your pass is tied to your approved role and employer. Labuan FSA recognises operational, approved marketing and co-located offices under the relevant guidelines. A Kuala Lumpur base must fit the office approval and immigration conditions. Tax consequences depend on the activity and office arrangement; some co-location arrangements require taxation under Malaysia’s Income Tax Act. We check both with the licensed trust company and tax adviser. If your main priority is living in Kuala Lumpur, MM2H Platinum or PVIP may be worth comparing.
Do I need an office in Labuan?
You need the operating presence required for your business activity and approved office arrangement. The preferential tax rates depend on meeting the applicable Labuan substance requirements; a registered address alone is not enough.
How much tax does a Labuan company pay?
Qualifying Labuan trading activities are taxed at 3% of audited net profits, while qualifying non-trading activities, such as certain investment holding, attract 0%. Both depend on meeting the relevant substance rules. Failure to meet them can result in 24% tax. Other activities or tax elections may fall under Malaysia’s Income Tax Act; obtain advice for your company.
Can my family come with me?
Eligible family members may apply to join you. The pass category, age rules and documentation depend on the relationship.
Is a Labuan company a residency visa?
No. Incorporating a company does not itself grant residency. You must separately qualify for a work pass tied to an approved role. If the company stops operating or loses eligibility, the pass may be revoked or not renewed.
Labuan company or MM2H?
A Labuan company suits a genuine business with the required operations and compliance. MM2H is a separate long-term residence programme: Platinum permits work and business, while other categories require separate permission for those activities. We compare the routes against your plans.
THE DETAIL BEHIND THE NUMBERS
Sources & planning notes.
Programme conditions, professional fees and approval requirements are confirmed for your individual case before you commit.
- Labuan IBFC — tax structure
- Labuan FSA — June 2026 work permit clarification
- Labuan FSA — company formation and tax eligibility
- Labuan FSA — work-permit and marketing-office guidelines
- Labuan FSA — tax and substance requirements (section 6)
- Labuan FSA — holding-company co-location conditions
Official sources checked 4 November 2026. Incorporation does not guarantee a work pass or a preferential tax rate. Final approvals and conditions are decided by the relevant Malaysian authorities. The licensed trust company and tax adviser confirm the current rules for your activity, office arrangement and application.
