Advantages of setting up an offshore company in Labuan

Why should you consider setting up a company in Labuan ?

Straightforward and advantageous tax system

  • Minimum tax on Labuan trading company upon election annually:
    • 3% of net profits as per audited accounts;or
    • RM20,000 (USD5,000)
  • 0% tax on Labuan Non-Trading activities (Investment Activities)
  • Double Tax Agreements (Treaties) with over 70 countries
  • Withholding tax exemption on payments made to non-residents
  • No import duty / sales tax / capital gain tax
  • 50% tax abatement for expatriate professionals and managers employed under Labuan companies

Cost Effective

  • No stamp duty on all instruments relating to offshore business activities including share transfer
  • 100% exemption for director’s fees received by non-citizen directors of Labuan companies


  • No foreign exchange controls
  • Strategically situated in the Asia Pacific region and sharing a common time zone with many large Asian cities

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