Malaysia Company Registration | Set Up a Labuan Company in Malaysia
Planning Malaysia company registration, or want to set up a company in Malaysia? Foreigners can own 100%, and there are two main entity types. A private limited company (Sdn Bhd) that operates locally registers with the Companies Commission of Malaysia (SSM). A Labuan company, often used for international trade and holding, must apply to the Labuan Financial Services Authority (Labuan FSA) through a Labuan trust company.
The SSM registration fee for a company limited by shares is RM1,000, a director must ordinarily reside in Malaysia, and corporate income tax is 24%. The Labuan company incorporation fee starts at US$300 depending on paid-up capital, the annual fee is US$1,000 from 2026, and companies that meet economic substance pay 3% on trading activities and 0% on investment holding.
NSS Group (戰國策集團) offers a one-stop Malaysia company formation service, from assessing a Sdn Bhd or Labuan company structure, name checks, documents and registration to bank account opening and annual maintenance, and helps founders and companies from abroad enter Malaysia and the ASEAN market.
A strategic location and a practical springboard into Southeast Asian markets.
A Labuan company pays 0% on non-trading activities (investment holding) and 3% on trading activities, provided it meets the economic substance requirements.
Our team supports you through every step so your company registration is completed smoothly.
Once the documents are complete, the fee is paid and Labuan FSA due diligence is passed, a Labuan company can be approved within 24 hours.
your Asian business hub?
The Labuan International Business and Financial Centre (Labuan IBFC) is regulated by the Labuan Financial Services Authority (Labuan FSA). Labuan companies are incorporated under the Labuan Companies Act 1990, their share capital can be in any currency other than the ringgit, and dealings with non-residents are not subject to exchange controls.
For tax, Labuan companies follow the Labuan Business Activity Tax Act: trading activities pay 3% of audited net profit, and non-trading activities such as investment holding pay 0%. However, the company must have enough full-time employees and annual operating expenditure in Labuan. Companies that do not meet economic substance are taxed at 24% under the same Act. Malaysia has tax treaties with many countries, and whether a Labuan company can use them must be confirmed treaty by treaty.
The main vehicle in Labuan is the Labuan company. By law, it must be set up through a trust company licensed by the Labuan Financial Services Authority (Labuan FSA), which first completes customer due diligence and issues a compliance declaration. If you plan to operate locally in Malaysia, register a private limited company (Sdn Bhd) with SSM instead.
NSS Group connects you with a reliable Labuan trust company, assesses whether a Sdn Bhd or a Labuan company suits your business, and plans the company structure and economic substance, so your Malaysia company registration and ongoing operations stay clear and compliant.
This is the first and a required step in setting up a Labuan company. The trust company acts as your local agent, handles everything related to registration, and provides company secretarial and registered address services.
Provide your proposed company name. The trust company applies to Labuan FSA to reserve it for a fee of US$30. Approval usually takes 24 hours, and the name is reserved for 3 months.
You provide detailed ID documents (such as passport copies) and proof of address for all directors and shareholders. The trust company prepares the constitution, directors’ consent to act, compliance declaration and all other required legal documents.
Once the documents are ready, the trust company files them with Labuan FSA and pays the incorporation fee (US$300, US$600 or US$1,500 depending on paid-up capital). After due diligence is passed, approval usually takes 24 hours, and you receive the certificate of incorporation.
After incorporation, the trust company helps you open a multi-currency corporate account with a bank in Malaysia or elsewhere in the world, so you can manage funds globally.
service
- Company name search and reservation
- Preparation and filing of registration documents
- Drafting of the company constitution
- Collection of the registration certificate
- Choosing a bank in Malaysia or Labuan
- Account opening document preparation
- Appointment scheduling and accompaniment
- Support after the account is opened
- Registered address
- Company secretary appointment
- Annual filings
- Document safekeeping and management
- Bookkeeping
- Tax filing and planning
- Financial statement preparation
- Audit arrangement
- Trademark search and assessment
- Trademark application filing
- Trademark maintenance and renewal
- Infringement protection advice
- Company change registration
- Share transfer support
- Company deregistration
- Legal advisory support
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Good customer service is key to a successful business. We give you a free AI customer service system that answers customer questions in real time and improves customer satisfaction.
A professional website is your company’s storefront online. Our full web design service gives you a site that looks good and works well.
Online marketing is an essential part of growing a business today. Our online marketing services include SEO, social media marketing and content marketing.
Every NSS Group company formation package includes a free all-in-one AI business management system, valued at NT$360,000
One AI system to run your company: 12 core systems, 75+ modules and 15 AI tools covering the full business workflow, so a new company can start operating quickly.
- Sdn Bhd or Labuan company structure assessment
- Company name check and reservation
- Introduction to a Labuan trust company or company secretary
- Preparation and filing of registration documents
- Registered address for the first year
Official fees: SSM registration for a company limited by shares RM1,000; Labuan company incorporation from US$300 and an annual fee of US$1,000 from 2026. Company secretary, trust company, accounting, audit and advisory fees are quoted by structure and scope of service. See the fee breakdown below. No hidden fees.
Malaysia company formation cost: fee breakdown
There are two ways to set up a company in Malaysia: register an ordinary private limited company (Sdn Bhd) with the Companies Commission of Malaysia (SSM), or set up a Labuan company with the Labuan Financial Services Authority (Labuan FSA) through a Labuan trust company. Their official fees and annual costs differ, so each item is listed below to help you check quotes.
| Item | Official fee | Notes |
|---|---|---|
| SSM ordinary company (Sdn Bhd) registration fee | RM1,000 (company limited by shares) | Filed online through MyCoID. A company limited by guarantee is RM3,000. The certificate of incorporation is requested separately for a fee. |
| SSM company name reservation | RM50 per name | An approved name is reserved for 30 days and can be extended with the Registrar's consent. |
| Labuan company name reservation | US$30 | Filed by a Labuan trust company. Labuan FSA usually approves within 24 hours, and the name is reserved for 3 months. |
| Labuan company incorporation fee | US$300 / US$600 / US$1,500 | Based on paid-up capital: US$300 up to RM50,000, US$600 above RM50,000 and below RM1 million, US$1,500 for RM1 million or more. |
| Labuan company annual fee | US$1,000 (from 2026) | Revised by Labuan FSA from January 1, 2026 (previously US$800). Paid through LEPAY by January 15 each year. |
| Company secretary, registered address, accounting and audit | Quoted by scope of service | A Sdn Bhd must appoint a company secretary within 30 days of incorporation. A Labuan company must appoint a Labuan trust company as its resident secretary, which also provides the registered address. |
| Labuan economic substance (staff and operating expenditure) | Depends on the type of business | To use the 3% or 0% rate, the company must have enough full-time employees and annual operating expenditure in Labuan, at the levels set by Labuan FSA and the tax authority. |
| NSS Group advisory fee | Written quote after a free assessment | Based on the entity type, shareholders' background, business activities and bank account needs. Every item is listed in the quote, with no hidden fees. |
Fees follow SSM and Labuan FSA notices, checked in October 2026. The latest official notice prevails.
Malaysia company tax: Sdn Bhd and Labuan company
Ordinary companies file under the Income Tax Act with the Inland Revenue Board of Malaysia (LHDN). Labuan companies follow the Labuan Business Activity Tax Act (LBATA), with completely different rates and conditions.
| Item | SSM ordinary company (Sdn Bhd) | Labuan company |
|---|---|---|
| Corporate income tax | 24%; companies that qualify as SMEs pay 15% on the first RM150,000, 17% on RM150,001 to 600,000 and 24% on the rest | Trading activities: 3% of audited net profit; non-trading activities (investment holding): 0% |
| Conditions for the lower rates | Paid-up capital of no more than RM2.5 million and gross income of no more than RM50 million; from year of assessment 2024, foreign companies or non-Malaysian citizens may not hold more than 20% directly or indirectly | Must meet economic substance: enough full-time employees and annual operating expenditure in Labuan; otherwise taxed at 24% under LBATA |
| Sales and service tax (SST) | Sales tax 5% or 10% (some essentials exempt); service tax generally 8%, and 6% for food and beverage, telecommunications, logistics and some others | Depends on whether the business supplies taxable goods or services in Malaysia, case by case |
| Annual obligations | File the annual return and financial statements with SSM and the income tax return with LHDN | Pay the Labuan FSA annual fee and file the annual return, audited financial statements and LBATA return |
A Sdn Bhd in which foreign shareholders hold more than 20% generally cannot use the 15% and 17% SME rates. Ask an accountant to assess your actual structure.
Sdn Bhd or Labuan company? Entity comparison
To do business locally in Malaysia, most companies choose an SSM ordinary company. A Malaysia Labuan offshore company is worth considering for regional holding or international trade.
| Item | SSM private limited company (Sdn Bhd) | Labuan company (Labuan FSA) |
|---|---|---|
| Regulator and law | Companies Commission of Malaysia (SSM), Companies Act 2016 | Labuan Financial Services Authority (Labuan FSA), Labuan Companies Act 1990 |
| How to set up | Apply online through MyCoID, yourself or through a company secretary | Must go through a licensed Labuan trust company, which carries out due diligence first |
| Directors and shareholders | At least 1 shareholder and 1 director; the director must ordinarily reside in Malaysia | At least 1 shareholder and 1 director, plus a resident secretary; no minimum capital, and share capital cannot be in Malaysian ringgit |
| Tax | Corporate income tax 24% (tiered rates for SMEs) | 3% on trading, 0% on non-trading, subject to economic substance |
| Best for | Selling, manufacturing or hiring staff locally in Malaysia | Regional holding, international trade, and financial and business activities with non-residents |
What foreign founders should know about setting up a company in Malaysia
- A Sdn Bhd needs a locally resident director: under SSM rules, a director of a private company must ordinarily reside in Malaysia. If all shareholders are foreign, you need to arrange a qualifying local director and appoint a company secretary within 30 days of incorporation.
- Foreign ownership limit for SME tax rates: from year of assessment 2024, companies more than 20% owned by foreign companies or non-citizens cannot use the 15% and 17% SME rates.
- Economic substance for Labuan companies: the Labuan 3% and 0% rates depend on meeting the staff and operating expenditure requirements. Companies that fall short are taxed at 24% under LBATA, so registration alone does not guarantee the low rate.
- Labuan companies need annual maintenance too: pay the Labuan FSA annual fee (US$1,000 from 2026) by January 15 each year, and the trust company handles the annual return and beneficial ownership information.
- Home-country CFC rules and tax treaties: the Labuan 3% or 0% rate may fall under controlled foreign company (CFC) rules in the shareholder's home country. Malaysia has tax treaties with many countries, but whether a Labuan company can use a given treaty must be confirmed case by case.
- Outbound investment filings: some countries require approval or a filing before residents or companies invest abroad. Keep contracts and records for funds moving in and out.
Further reading
Sources: SSM: Starting a Company (director residence, company secretary, registration fee); SSM: Guidelines for Incorporation of a Local Company (name reservation RM50); Labuan FSA: Labuan company incorporation procedures and fees; Labuan FSA: Labuan companies FAQ (tax rates, directors and secretary, substance); Labuan FSA: fee schedule from 2026; LHDN: company tax rates; LHDN: PR 8/2025 tax treatment for micro, small and medium companies (20% foreign ownership condition); LHDN: guidelines on Labuan trading and non-trading activities; Royal Malaysian Customs Department: service tax FAQ. The latest official notices prevail. This page is general information, not legal or tax advice.
How long does it take to set up a Labuan company in Malaysia?
The time to set up a Labuan company in Malaysia depends on name approval, document signing, due diligence by the trust company and Labuan FSA, and bank account opening. Once the documents are complete and due diligence is passed, Labuan FSA usually approves incorporation within 24 hours. Regulated activities such as financial services that need a license can take longer. Before we start, we give you the actual process and timeline for your structure.
What documents do I need to register a Labuan company in Malaysia?
To set up a Labuan company in Malaysia, you usually prepare the following first:
- 1. ID documents for all shareholders, directors and ultimate beneficial owners
- 2. Proof of address from the last three months and contact details
- 3. The Labuan company name, entity type and registered address arrangements
- 4. A description of the business model, main trading regions and source of funds
- 5. Shareholding percentages, director appointments, KYC and required authorization documents
Do I need to travel to Malaysia to set up a Labuan company?
Most of the Labuan company setup can be completed remotely through document preparation, signing under authorization and help from a local agent, so you do not have to be there in person throughout. However, bank account opening, identity verification, special licenses or certain government procedures may require directors, shareholders or authorized persons to attend in person or by video, or to provide more documents. We confirm the requirements in advance and help arrange them.
What taxes and annual filings does a Labuan company have?
- 1. Labuan business activity tax (3% on trading, 0% on investment holding, subject to economic substance); ordinary companies follow the Income Tax Act and the sales and service tax (SST)
- 2. Annual returns, company registration maintenance, and registered agent or secretarial services
- 3. Accounting records, audit, and economic substance or beneficial ownership information
For a Labuan company, the main ongoing items are paying the Labuan FSA annual fee by January 15 each year (US$1,000 from 2026), annual returns and audited financial statements, Labuan business activity tax returns, keeping economic substance and beneficial ownership information up to date, and licenses for certain financial activities. We can plan the bookkeeping, filing and annual maintenance schedule for your business model.
Which businesses and structures suit a Labuan company?
Who can help me register a company in Malaysia?
NSS Group (go.ai.com.tw) can help. We provide one-stop support from the assessment before you set up a Labuan company in Malaysia to maintenance after incorporation, reducing the uncertainty of cross-border setup and compliance.
Our main services include:
- 1. Labuan company entity type and structure assessment
- 2. Company name search, document preparation and registration application
- 3. Bank account opening, KYC and cross-border payment documents
- 4. Bookkeeping, tax filing and annual compliance
- 5. Changes to shareholders, directors, address, shares and company details
- 6. Trademark registration, contract review and intellectual property planning
- 7. Website development, digital marketing and AI customer service setup
- 8. Ongoing business advisory and cross-border business support
We arrange the setup, maintenance and ongoing support of your Labuan company based on your industry, customer locations, banking needs and tax planning, so you can focus on growing your market.