Labuan company formation
Labuan Company under the Labuan Companies Act 1990, the Asian midshore alternative to a pure offshore IBC. Trading profits taxed at 3% of audited net profit (0% on non-trading holding activity) where you meet Labuan's economic-substance test. REPUTABLE tier: Malaysia is off the EU Annex I/II list and off the FATF grey list as of Feb 2026. Mandatory licensed Labuan trust company as incorporating agent; no public UBO register. Note: Malaysia is not in the Hague Apostille Convention, so documents for foreign use require consular legalization rather than an apostille.
- Tier
- REPUTABLE
- Formation
- 5 business days
- KYC
- Tier 1
- Renewal
- $2699/yr
What's included
- Labuan FSA name reservation, registration fee, and the first-year USD 1,000 annual fee: we file and pay them on your behalf
- Memorandum and Articles of Association (Labuan company under the Labuan Companies Act 1990)
- First Director and Subscriber Resolutions
- Resident secretary and registered office in Labuan, provided by the licensed Labuan trust company as required by statute
- Beneficial Owner Declaration, collected and held by the licensed Labuan trust company under its Labuan FSA AML program (not published)
- First-year licensed Labuan trust-company (incorporating agent) service
- Sanctions screen on the order (OFAC, EU, UN) + Tier 1 KYC
What's NOT included
- Apostille: not available, Malaysia is not in the Hague Apostille Convention, so documents for foreign use need consular/embassy legalization, a longer process we quote case by case
- Year-2+ renewal ($2,699/yr: the USD 1,000 annual Labuan FSA fee plus the mandatory trust-company secretary and registered-office service)
- Economic-substance build-out (local staff, premises, and minimum annual local spend): required to hold the 3% trading / 0% holding rate, scoped and quoted separately, not part of this formation price
- Audit of trading-company accounts (a Labuan trading company files audited accounts; billed by a Labuan-licensed auditor, not us)
- Bank account opening (separate post-formation flow; major US rails do not onboard Labuan companies, plan on an Asia-corridor or local Labuan account over a multi-week onboarding)
- Any tax preparation, filing, or treaty-position work (we form the entity; we are not your accountant)
We list what's not included on every product page so there are no checkout surprises.
Operator-grade use case
The Asian midshore company for an operator who wants a real low rate under a published statute rather than a zero-tax flag a compliance desk squints at. Labuan is REPUTABLE: Malaysia is off the EU Annex I and Annex II lists and off the FATF grey list as of February 2026, the Labuan Companies Act 1990 is a recognized framework, and there is no public UBO register. A trading company is taxed at 3% of audited net profit; a holding company at 0%, both conditional on meeting Labuan's economic-substance test.
Most appropriate for non-US operators with genuine Asian trading activity who can support substance in Labuan (management, core activity, minimum staff and local spend) and want Malaysia's treaty network behind the structure, and for non-US Bitcoin operators holding a treasury who want a 0% holding company with an Asia-corridor or Bitcoin-native banking path. Formation runs about 5 business days once Tier 1 KYC clears through the mandatory licensed Labuan trust company.
Less ideal for a passive shell or a US person. The 3%/0% rates are not automatic: fail the substance test and income can be taxed at Malaysia's 24% standard rate, and at $3,699 Year 1 plus $2,699/yr with a mandatory trust company and (for trading companies) an audit, Labuan is neither cheap nor low-maintenance. If you only need a zero-tax wrapper with no substance, a Seychelles IBC at $1,099 is far cheaper. US persons get no US-tax benefit here (CFC and Subpart F rules apply). And remember there is no apostille: foreign banks that want legalized documents trigger the slower consular-legalization route.
What you'll need to hand us
- Email address
- Country of residence
- Intended use statement (free-text)
- Government-issued photo ID (passport or national ID)
- Proof of address (utility bill, bank statement, or government letter, dated within 90 days)
- Source-of-funds attestation (drop-down + free text)
- Optional: PEP and adverse-media screening consent
- Everything in Tier 1
- Beneficial owner declaration for every party with 25%+ ownership
- Source-of-wealth documentation (tax return, employment letter, salary, asset proof)
- Manual enhanced-due-diligence reviewer notes from our KYC partner
Common questions
- What is a Labuan company good for?
- An Asian midshore trading or holding company under the Labuan Companies Act 1990: 3% tax on audited net trading profit, 0% on non-trading holding activity, both conditional on meeting Labuan's economic-substance test. It is REPUTABLE tier, off the EU Annex I/II and FATF grey lists as of February 2026, with no public UBO register.
- Is the 3% rate guaranteed?
- No. It applies only if you meet Labuan's substance requirements (management and core activity in Labuan, minimum local staff and annual spend). Fail the test and income can be taxed at Malaysia's 24% standard corporate rate. Substance build-out is scoped and priced separately, not part of the formation fee. General information, not tax advice.
- Can I get an apostille?
- No. Malaysia is not in the Hague Apostille Convention, so documents for use abroad need consular or embassy legalization instead of an apostille. It is slower; budget for it if a foreign bank asks for legalized documents.
- How do I pay, and what does it cost?
- The $3,699 all-in Year-1 price is settled in BTC, Lightning, or USDT via BitSettle, and includes the Labuan FSA government fees (with the USD 1,000 annual fee) and the mandatory licensed trust company's first-year service. Renewal is $2,699/yr.
Operators usually pair this with
Seychelles IBC
Classic offshore IBC.
Hong Kong Ltd
Asia hub. Treaty network, multi-currency banking.
Banking Concierge
Account-opening introductions + application prep. No guarantees, better odds.
Offshore RA Renewal
Annual offshore RA renewal.