List (.pdf)
Total area: 93 sq. km.
Population: approximately 51,500 residents
Political structure - dependent federal territory of Malaysia
Official languages - Bahasa and English
Legislation is based on British common law.
Currency - Malaysian ringgit
Company law
Labuan Companies Act 1990 (Act 441)
Offshore Companies Act - Offshore Companies Act 1990 (historical name)
Company type
Offshore company - Offshore Company in the form of a private company ("Sendirian Berhad" or "Sdn. Bhd.,").
Permitted activities
Any activity not prohibited by law. A special licence is required for banking and insurance activities
Prohibited activities
A company may not conduct in Malaysia activities connected with oil and gas industry products (storage, transportation, trading) or sea passenger and cargo transportation.
Registration time
2 weeks from the date all required documents are provided.
Possibility to purchase ready-made companies
The law does not prohibit purchase of already registered companies.
Company name
It must not be identical or similar to an existing name.
The name must end with one of the words/phrases indicating limited liability: "Corporation", "Incorporated", "Limited", "Societe Anonyme", "Sociedad Anonima". If the Malaysian word “Berhad” is used in the name, it must be preceded by the letter “L”, meaning that the company is incorporated in Labuan.
The words "Building society", "Trust", "Chamber of commerce", "Chartered", "Royal", "Royal Family" or other words or phrases having the same meaning require special permission
A name considered undesirable by the official authorities will not be registered
Documents required for registration
Memorandum of incorporation.
Articles of Association.
Statutory declaration of compliance with the laws.
Confirmation of payment of fees.
Minutes on appointment of the director.
Articles of Association.
Statutory declaration of compliance with the laws.
Confirmation of payment of fees.
Minutes on appointment of the director.
Registered address
Provided by the registered agent and must be located within the administrative territory of the jurisdiction. It is used only for receiving postal correspondence from government authorities.
Share capital
The state registration fee depends on the amount of paid-up authorised capital: up to and including RM 50,000 - USD 300; over RM 50,000 but less than RM 1 million - USD 600; RM 1 million and above - USD 1,500. The annual government fee for a Labuan company is USD 1,000.
Shares
All types of shares may be issued, except bearer shares.
Shareholders
Company shareholders may be legal entities or individuals resident in any country of the world. The minimum number of shareholders is two. If one person becomes the shareholder of a private company, liability for payment of debt or compensation of losses will be unlimited and will apply to all assets of the shareholder.
Directors
Directors of the company may be individuals or legal entities resident in any country of the world. The minimum number is one director, who has all powers except those within the exclusive competence of the shareholders (determined by the memorandum, articles of the company and/or law).
Corporate Secretary
Each company must have a corporate secretary who is a resident of Malaysia and has the appropriate qualifications. As a rule, an employee of the company acting as registration agent is appointed as company secretary.
Holding meetings of shareholders/directors
Shareholders meetings are held annually in any country of the world, no later than 6 months after the end of the previous financial year. Minutes may be kept by each shareholder and one copy at the registered office.
Financial accounting requirements
All legal entities, including offshore companies, are required to provide a financial report on commercial activity containing information on all income and expenses of the company and certified by a local auditor.
Information available on request by third parties
Company name, registered office, authorised capital, addresses and names of directors
Taxation
Companies carrying out offshore operations pay income tax on net income at the rate of 3% or a fixed fee of 20,000 ringgit. Offshore companies carrying out commercial activity in the provision of services are exempt from income tax.
Company bank accounts
The law does not restrict the company in its choice of banks or the countries where they are located, or the total number of accounts required for its own business needs. The law protects the confidentiality of information about the company's banking operations.
Currency control
An offshore company may not carry out commercial activities in Malaysian currency, except for payment of administrative expenses and expenses provided for by the articles.
Double taxation agreements
Australia, Austria, Albania, Bangladesh, Belgium, United Kingdom, Hungary, Vietnam, Germany, Denmark, Zimbabwe, India, Indonesia, Italy, Canada, China, Korea, Malta, Mauritius, Mongolia, Netherlands, New Zealand, Norway, UAE, Pakistan, Papua New Guinea, Poland, Romania, Europe, Saudi Arabia, Singapore, Sudan, Thailand, Turkey, Sweden, Switzerland, Sri Lanka, Czech Republic, Philippines, Finland, France, Yugoslavia and Japan.