Expanding a business internationally requires a stable, transparent, and tax-efficient jurisdiction. Labuan International Business and Financial Centre (Labuan IBFC) has emerged as one of Asia’s most strategic gateways for global business expansion — offering the perfect blend of regulatory credibility, business flexibility, and low operational cost.
Why Choose Labuan for International Business?
Located in Malaysia yet recognized as an international financial hub, Labuan serves as a bridge between Asia-Pacific markets and global economies. Companies registered in Labuan enjoy multiple advantages under the Labuan Companies Act 1990 and Labuan Business Activity Tax Act 1990.
Key Benefits of a Labuan Company
1. Attractive Tax Incentives
Labuan companies engaged in trading activities can choose between:
- A 3% tax on audited net profits, or
- RM20,000 flat tax per year.
For non-trading entities such as investment holding companies, no tax is imposed. This flexibility allows businesses to optimize their global tax strategies.
2. 100% Foreign Ownership
Labuan companies can be fully owned by foreign individuals or corporations, with no local ownership requirement — making it ideal for international investors.
3. Ease of Repatriation
Profits, dividends, and capital can be freely repatriated without restrictions, ensuring smooth international transactions and global cash flow management.
4. Confidentiality and Privacy
Labuan’s regulatory framework ensures high standards of data privacy and confidentiality, protecting shareholders and company information while maintaining international compliance standards.
5. Double Taxation Agreements (DTAs)
As part of Malaysia, Labuan companies may enjoy tax treaty benefits with over 70 countries, reducing withholding taxes on cross-border income.
6. Wide Range of Business Activities
Labuan entities can engage in:
- International trading and consultancy
- Investment holding
- Financial services (with licensing)
- E-commerce and digital business
- Shipping and leasing
AMS Trust — Your Partner for Seamless Global Setup
Establishing a Labuan company is simplified with AMS Trust, a licensed Labuan Trust Company. Their services cover:
- Incorporation and business registration
- Corporate secretarial and nominee support
- Tax compliance and accounting
- Advisory for international structuring
Final Thought
Incorporating a Labuan company is not just about tax advantages — it’s about gaining access to a globally recognized platform for cross-border growth. With AMS Trust’s expertise, you can confidently expand your operations and protect your assets under a world-class regulatory framework.