Labuan company formation

A holding company at 0%, with no public owner register

A Labuan company that holds your shares in other companies, inside Malaysia's own offshore tax law. One price, US$4,990 a year, with the resident director, audit and yearly meeting in Labuan all handled, run from anywhere.

Formed through a licensed Labuan trust company. No visit needed.
  • Resident director included
  • Audit and tax return handled
  • Nothing charged until you sign
0%Labuan tax on a holding company that meets the rules
0%Withholding on dividends it pays you abroad
NoneDirectors, owners or accounts on a public file
RM20,000A year spent in Labuan, and we make sure it is
01Which company are you?

Labuan company tax: 0%, 3% or 24%, by what you do

Most pages sell "3% tax" to anyone. Labuan's rate depends on what the company does and who works for it in Labuan. Pick yours.

02Keeping the 0%

What a Labuan holding company needs each year

The 0% has conditions, and they sit in Labuan, not with you. Each one is inside the yearly price.

  1. RM20,000Spent in Labuan

    About US$4,950 a year. We make sure at least this much is spent in Labuan every year, whatever the exchange rate does, inside your price.

  2. 1 meetingA board meeting in Labuan

    Held there once a year with your resident director. We agree how you take part before you order.

  3. 1 directorA resident director

    Required by law since 2022, supplied by the trust company. You sit on the board too.

  4. 1 auditAudited accounts and a tax return

    Due seven months after your year end, even at 0%. Prepared and filed for you.

03Who sees what

Is a Labuan company private?

Yes, as far as the public goes. A free search confirms the company exists and is active, and that's all. Disclosing more is a criminal offence in Labuan law. How that search works: Labuan company search.

Public search Your company Ltd
StatusActive
Directors
Shareholders
Accounts
  • Labuan FSAHolds the owner register, for anyone at 25% or more, filed by your trust company.
  • Your trust companyKnows you, and keeps the records in Labuan.
  • Banks and tax officesSee what they need through the usual checks and tax data exchange.
04Money in, money out

A Labuan holding company in numbers

Type what your companies would pay up to it each year. The point of a holding company is what it keeps.

US$
Labuan taxUS$0
Withholding when it pays youUS$0
Our yearly price, as a share2.5%

05Inside Malaysia

Labuan vs a Malaysian Sdn Bhd

Labuan is Malaysian soil with its own company and tax law. That brings a respected address, and a few things to know.

Malaysian customers are fine

The old ban on dealing with Malaysians and in ringgit went in 2019. A Malaysian payer may deduct only part of what it pays you, so it suits foreign business first.

Off the EU lists

Malaysia left the EU's watch list in October 2024, and isn't on either part of the October 2026 update. It's not on the FATF lists either.

Treaties, with care

Treaty benefits need management in Malaysia, and some treaties leave Labuan out. A holding run from abroad shouldn't count on them.

06Crypto

Labuan and crypto: keep it out of the holding company

The 0% list covers shares, loans and deposits. Crypto isn't on it, so as we read it, crypto gains count as trading. Hold coins somewhere else; our crypto company guide compares the options.

Holding companyShares in your companies0%, with the yearly conditions met
Own cryptoTrading, on our reading3% only with staff in Labuan
Services for othersA Labuan licenceRM1.5 million capital, an office in Labuan, and US$10,000 a year
07The whole bill

Labuan company formation cost, the same every year

Most quotes leave out the resident director, the audit and the Labuan spending. Ours is one number, and year one costs the same as year five.

Year one

GovernmentAt cost: US$300 registration and US$15 name reservationUS$315
HeirsonLicensed trust company, office, secretary, resident director, owner filing, board meeting in Labuan, bank account set up with youUS$4,675
You payUS$4,990

Every year after

GovernmentAt cost: Labuan FSA annual feeUS$1,000
HeirsonTrust company, office, secretary, resident director, audit, tax return, owner filing, board meeting in LabuanUS$3,990
You payUS$4,990
Trading at 3%Quoted firstTwo qualified staff hired in Labuan, and RM50,000 a year
Legalised documentsQuoted firstMalaysia doesn't use the apostille
Fast trackUS$500 extraAt cost, from Labuan FSA

We see that RM20,000 is spent in Labuan each year, whatever the exchange rate. Comparison: added up with a resident director, audit and tax return, the lowest complete offer we found came to about US$5,300 in year one, before any Labuan spending, in November 2026.

Questions

Labuan company questions, answered

Selling services alone, with no team? A Seychelles or Belize company fits better.

How much does a Labuan company cost?
With Heirson, US$4,990 a year, the first year included. That covers government fees, the trust company, a resident director, the audit, the tax return and the yearly board meeting in Labuan. Every date and penalty that price covers is in our Labuan annual fees and filings guide.
Is Labuan tax 3% or 0%?
0% for a holding company that meets the yearly conditions, and 3% of audited profit for a trading company with qualified staff working in Labuan. Without the conditions it's 24%. More in our Labuan tax guide.
Can I still pay RM20,000 flat tax instead?
No. That option ended from 1 January 2019. RM20,000 now appears as the minimum a holding company spends in Labuan each year, and we make sure it's spent, inside our price.
Do I need a resident director in Labuan?
Yes. Since June 2022 every Labuan company has one, supplied by a licensed trust company. You can be a director as well, and you keep ownership.
Can foreigners own 100% of a Labuan company?
Yes. One shareholder of any nationality is enough, with no minimum capital. Bearer shares are banned.
Are Labuan company owners public?
No. Owners at 25% or more go on a register held by Labuan FSA, which the public can't search. Regulators and, through tax exchange, tax offices can still learn who you are.
Can outsourced staff meet the substance rules?
Not since 2025. Staff must be qualified, employed by the company itself and physically working in Labuan. That's why we sell trading companies only after quoting real hires.
Does a Labuan company pay tax on dividends to me?
Labuan charges no withholding on dividends paid to owners abroad. Where you live may tax what you receive.
Do I have to visit Labuan?
Not to form it. Malaysia doesn't accept apostilles, so some papers need legalising. A Labuan bank may ask a director to visit, so we plan the bank route with you early.
Can I open a bank account for a Labuan company?
Yes, in Labuan, elsewhere in Malaysia or abroad, and we handle the application with you. Done that way, it almost always goes through. Which bank fits, and what Labuan's 2026 rules ask, is in our Labuan company bank account guide.
Next

Let your companies pay up to one that keeps it all.

US$4,990 a year, every year, with Labuan's conditions handled for you. The first payment follows your signature.

Labuan holding companyUS$4,990 a year, all inStart