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.
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
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
Consultation & Structure Review
Day 1We 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
Day 1–2We coordinate the company name reservation and complete the required KYC and onboarding through the Labuan trust company.
Incorporation & Registered Office
Approx. Week 1Your Labuan Company is incorporated through the required Labuan trust company structure, which also provides the registered office and secretary function.
Bank Account Setup
Week 1–3We support the bank account process in Labuan or with selected international banking options, depending on your profile and business activity.
Tax & Ongoing Compliance
Week 2 onwardWe 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?
Is there a minimum capital requirement?
Do I need a local secretary or agent?
What tax rate applies in Labuan?
Can a Labuan Company be used as a holding company?
Can a Labuan Company open a bank account?
Does a Labuan Company need physical presence in Labuan?
Does a Labuan Company get full treaty access automatically?
Is Labuan better than a Malaysia Sdn Bhd?
Tax Quick Reference
Subject to substance requirements. No guarantee.
Labuan vs Malaysia Sdn Bhd
Labuan vs Malaysia Sdn Bhd vs Hong Kong vs Singapore
Compare the key structures for international incorporation at a glance.
| Criterion | Labuan | Malaysia Sdn Bhd | Hong Kong | Singapore |
|---|---|---|---|---|
| Corporate Tax | 0% / 3% | 17–24% | 0–16.5% | 0–17% |
| Capital Gains Tax | 0% | 0% | 0% | 0% |
| VAT / SST / GST | 0% in Labuan | 6% SST | 0% | 9% GST |
| Best use case | Holding, Treasury, Licensing | Local Malaysian business | Trading, E-Commerce | Holding, Finance |
| 100% Foreign Ownership | Yes | Yes | Yes | Yes |
| Minimum Capital | 1 share | RM 1 | HKD 1 | SGD 1 |
| Local substance expectation | Yes (required) | Standard | Recommended | Recommended |
| Bank account access | Limited | Good | Excellent | Excellent |
| Best for holding structures | ✓ Yes | Limited | ✓ Yes | ✓ Yes |
| Best for operational business | No | ✓ Yes | ✓ Yes | ✓ Yes |
| Best for payment processing | No | Good | Excellent | Excellent |
| Best for relocation use | Limited | ✓ MM2H | Limited | ✓ EntrePass/EP |
Data as of 2026. Information subject to change. Substance requirements may vary.
Ready to incorporate?
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.
Find Your Optimal Structure
What do you want to achieve?
Select one or more goals. We will then ask you the relevant questions.
Your data is treated confidentially and will not be shared with third parties.
Contact our Labuan 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.
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