GENERAL INFORMATION

Labuan is an island located off the Borneo coast and is a Federal Territory under the administration of the Federal Government of Malaysia. Sharing a common time zone with many large Asian cities makes Labuan convenient for business dealings.

Since being declared an international business and financial centre in 1990, Labuan International Business and Financial Centre (Labuan IBFC) has steadily grown in reputation and financial standing over the years. Labuan Financial Services Authority (Labuan FSA) is the statutory body responsible for the development and administration of the Labuan IBFC.

Other basic facts:

Time zone

Greenwich Mean Time +8

 

Official language

Bahasa Malaysia (Malay) is the national language. English, Chinese and Tamil dialects are also widely spoken, with English being the language of business

 

National currency

Malaysian Ringgit (MYR)

 

KEY CORPORATE FEATURES OF LABUAN COMPANIES

SHARE CAPITAL
Permitted currenciesAny foreign currency except Ringgit Malaysia
Standard currencyUS$
Minimum issued capitalOne (1) in any denomination in foreign currency
Authorised capitalN/A
Par / nominal valueN/A
DIRECTORS
MinimumOne (1)
Corporate directorAllowed
Local director requirementsOptional
Location of meetingAnywhere
Minimum number of meetingsPer Articles of Association
Publicly accessible recordsNo
SHAREHOLDERS
MinimumOne (1)
Bearer sharesNo
Corporate shareholdersAllowed
Local shareholder requirementsNo
Location of meetingAnywhere
Minimum number of meetingsOne (1) annually
Publicly accessible recordsNo
COMPANY SECRETARY
MinimumOne (1)
RequirementsA resident secretary who must be a Trust Officer of a trust company OR a Labuan / Malaysian domestic company wholly-owned by the Labuan trust company
REGISTERED OFFICE
RequirementsPrincipal office of a trust company in Labuan
ACCOUNTS
RecordsKept in Labuan
Preparation of accountsYes
Audit requirements and filingRequired for Labuan companies carrying on Labuan trading business
Publicly accessible recordsNo
ANNUAL REQUIREMENTS
Annual returnNot later than 30 days from the anniversary date of incorporation of the Labuan company
Annual government feeOn or before the anniversary date of incorporation of the Labuan company
Tax filingAnnual tax return needs to be filed with the Malaysian Director General of Inland Revenue by 31 March of that year of assessment. Normally, an extension of time for filing is allowed by the Inland Revenue
TAXATION
Trading activities3% of net audited profits
Non-trading activitiesNil
Trading and non-trading activities3% of net audited profits
OthersNo withholding tax, no capital gain tax, no stamp duty on offshore instruments
GENERAL
Legal systemCommon Law
Corporate re-domiciliationYes
Double taxation treaty accessYes
Exchange controlNo

The information in this document is not advice of any kind but general information only and should not be relied on as legal advice. Kensington Trust Group recommends seeking professional advice on legal or tax issues affecting you before relying on it. While Kensington Trust Group tries to ensure that the content of this document is accurate, adequate or complete, it does not represent or warrant, express or implied, its accuracy, correctness, completeness or use of any of the information. Kensington Trust Group does not assume legal liability for any loss suffered as a result of or in relation to the use of this document. To the extent permitted by law, Kensington Trust Group excludes any liability for negligence, for any loss, including indirect or consequential damages arising from or in relation to the use of this document.