
Location
One of the outside islands of Malaysia.
Economy
A federal territory in East Malaysia.
Famous tourism area in South Asia.
Language
Malay and English
Legal System
Common Law
| Labuan Company | |
| Type | Limited Company |
|---|---|
| Name | End with “Ltd.”, “Corp.”, “Inc.”, “Bhd”, “S.A.”, “N.V.”, “B.V.”, “GmbH” or “A.G.”. |
| Capital | No requirement. |
| Share | Prohibited to issue no value or bearer shares. |
| Share Index | Yes |
| Registered Agent | Yes |
| Registered Address | Yes |
| Public Disclosure | No |
| Min. Shareholder | At least one |
| Min. Director | At least one |
| Disclosure of Shareholder | No |
| Disclosure of Director | No |
| Trading restriction | No |
| Taxation | Income tax rate 3% or a Fixed taxation paid of MYR 20, 000 every year. |
| Financial Statement | Yes |
| Tax Returns | Yes |
| Account Filing | Yes |
| Audit Report | Yes |
| Accounting | Yes |
| Incorporation Cost | USD 3,000 |
| Annual Fee | USD 2,900 |
Tax Rate: %
*Footnote
Domestic Withholding Tax Rates for Labuan
Dividends: 0
Interest: 15
Royalties: 10 *
| Treaty Partner | Ownership | Dividends * | Interest | Royalties |
| Albania | - | 0 | 10 | 10 |
|---|---|---|---|---|
| Australia | - | 0 | 15 | 10 * |
| Austria | - | 0 | 15 | 10 * |
| Bahrain | - | 0 | 5 | 8/10 * |
| Bangladesh | - | 0 | 15 | 0/10 * |
| Belgium * | - | 0 * | 10/D * | D * |
| Brunei | - | 0 * | 10 * | 10 * |
| Canada | - | 0 | 15 | 0/10 * |
| Chile | - | 0 | 15 | 10 |
| China | - | 0 | 10 | 10 * |
| Croatia | - | 0 | 10 | 10 |
| Czech Republic | - | 0 | 12 | 0/10 * |
| Denmark | - | 0 | D * | 10 |
| Egypt | - | 0 | 15 | 10 * |
| Fiji | - | 0 | 15 | 10 * |
| Finland | - | 0 | 0/15 * | 0/10 * |
| France | - | 0 | 15 | 0/10/D * |
| Germany | - | 0 * | 10 * | 7 * |
| Hungary | - | 0 | 15 | 10 * |
| India * | - | 0 * | 10 * | 10 * |
| Indonesia | - | 0 * | 10 * | 10 * |
| Iran | - | 0 | 15 | 10 |
| Ireland | - | 0 | 10 | 8 |
| Italy | - | 0 | 0/15 * | 0/10 * |
| Japan | - | 0 | 10 | 10 |
| Jordan | - | 0 | 15 | 10 * |
| Kazakhstan | - | 0 * | 10 | 10 |
| Korea (R.O.K.) * | - | 0 * | 0/15 * | 0/10 * |
| Kuwait | - | 0 | 10 | 10 * |
| Kyrgyzstan | - | 0 | 10 | 10 |
| Laos | - | 0 * | 10 * | 10 * |
| Lebanon | - | 0 | 10 | 8 |
| Luxembourg | - | 0 | 0/10 * | 8 |
| Malta | - | 0 | 15 | 10 * |
| Mauritius | - | 0 | 15 | 10 * |
| Mongolia | - | 0 | 10 | 10 |
| Morocco | - | 0 | 10 | 10 |
| Myanmar | - | 0 | 10 | 10 |
| Namibia | - | 0 | 10 | 5 |
| Netherlands | - | 0 | 0/10 * | 0/8 * |
| New Zealand | - | 0 | 15 | 0/10 * |
| Norway | - | 0 | D * | 0/D * |
| Pakistan | - | 0 | 15 | 0/10 * |
| Papua New Guinea | - | 0 | 15 | 10 |
| Philippines | - | 0 | 0/15 * | 0/10 * |
| Poland | - | 0 | 0/15 * | 0/10/D * |
| Qatar | - | 0 | 5 | 8 |
| Romania | - | 0 | 0/15 * | 0/10 * |
| Russia | - | 0 | 15 * | 10 * |
| San Marino | - | 0 * | 10 * | 10 * |
| Saudi Arabia | - | 0 | 5 | 8 |
| Seychelles | - | 0 | 10 | 10 |
| Singapore | - | 0 | 10 | 5/8 * |
| South Africa | - | 0 | 10 | 5 |
| Spain | - | 0 | 10 | 5/7 * |
| Sri Lanka | - | 0 | 10 | 10 |
| Sudan | - | 0 | 10 | 10 |
| Sweden | - | 0 | 10 | 8 |
| Switzerland | - | 0 | 10 | 0/10 * |
| Syria | - | 0 | 10 | 10 * |
| Taiwan | - | 0 | 10 | 7.5/10 * |
| Thailand | - | 0 | 15 | 0/10 * |
| Turkey | - | 0 | 15 | 10 |
| Turkmenistan | - | 0 | 10 | 10 |
| United Arab Emirates | - | 0 | 5 | 10 |
| United Kingdom | - | 0 | 10 | 8 |
| Uzbekistan | - | 0 | 10 | 10 |
| Venezuela | - | 0 | 15 | 10 |
| Vietnam | - | 0 | 10 | 10 |
| Zimbabwe | - | 0 | 10 | 10 |
Note 1:Malaysia does not levy withholding tax on dividends.
Note 2: A 10% rate applies to royalties generally. The 10% rate also applies to payments for services rendered in Malaysia where the nonresident does not have a PE in Malaysia; if the nonresident has a PE, the rate is 10% + 3%.
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