Fact File

Fact File Supplied By:

Labuan International Business and Financial Centre (Labuan IBFC).


Off the North-West of Borneo and approximately 10 km from the Malaysia State of Sabah.

Time Zone

8 hours ahead of Greenwich Mean Time (+0800 GMT) and 16 hours ahead of US Pacific Standard Time.




Federal Territory of Malaysia.


Labuan International Airport.


The National language is Bahasa Malaysia while English and Chinese are widely spoken. English is commonly used as business language.


Malaysian Ringgit (MYR).

Political system

Federal government through the Ministry of Federal Territories.

International dialling code

Common law legal system.

Centre’s expertise

1. Islamic finance
2. Digital financial services
3. Wealth management
4. Insurance and risk management
5. Trading and non-trading (investment activities)
6. Banking
7. Capital market

Personal income tax

Subject to the provisions of the Malaysian Income Tax Act, 1967 (ITA).

Corporate income tax

All Labuan companies that are in scope will be subject to ‘economic substance requirements’ (ESR) under the Labuan tax regime, and will benefit from the preferential tax rates mentioned below:
• Labuan companies undertaking Labuan trading activities are subject to 3% tax of net audited profit
• Labuan companies undertaking Labuan non- trading activities are not subject to tax
• Labuan companies undertaking both Labuan trading and non-trading activities are deemed to be undertaking Labuan trading activities and subject to 3% tax of net audited profit

Exchange restrictions

Any currency.

Tax Information exchange agreements

Labuan Business Activity Tax Act 1990 

Permitted currencies

Any currency.

Minimum authorised capital


Minimum share issue

1 share.

Shelf companies


Timescale for new entities

1 business day.

Incorporation fees

Company incorporation fee is based on paid up capital:
1. < MYR50,000 – USD300 / MYR1,000
2. MYR50,000 – MYR1,000,000 – USD600 / MYR 2,000
3. > MYR1,000,000l – USD1,500 / MYR5,000

Annual fees

Labuan company – USD800/MYR2,600
Labuan foreign company – USD1,500 / MYR5,300

Minimum number


Residency requirements/ownership restrictions


Corporate directors



Must be held out of Labuan, minimum 1.

Bearer shares

Not permitted.

Minimum number


Annual return


Audit requirements

Mandatory for Labuan companies carrying on trading activities.

Registered office

Registered office address in Labuan is mandatory.

Domicile issues


Company naming restrictions

No restriction, subject to section 21 of LCA.