What is a Labuan company and do I need one?
A Labuan company is a midshore vehicle under the Labuan Companies Act 1990, suited to mostly-offshore activity — international trading, holding, certain licensed financial businesses — with its own tax regime. For a business with Malaysian customers, Malaysian banking and Malaysian staff, a domestic Sdn Bhd is the expected structure; Labuan entities face restrictions dealing onshore.
Statutory figures: Labuan Companies Act 1990
Also asked as: labuan vs sdn bhd; offshore company malaysia; labuan company benefits.
If someone is selling you a Labuan setup mainly as a tax trick for an onshore business, get a second opinion — substance requirements and onshore-dealing rules have tightened significantly.
Key facts
- Labuan Companies Act 1990; midshore regime
- Onshore-dealing restrictions; substance requirements apply