Set up Malaysia(Labuan) offshore company with a bank account

After hong kong, only one country is forging its place in terms of investment and tax benefits for offshore companies. Yes, we are talking about Malaysia here which is becoming an offshore company destination in Asia.

Labuan(Independent state) is the place chosen by the Malaysian government and controlled by the Labuan government to build as an offshore financial hub with the name Labuan International Business and Financial Centre.

Type of Offshore company in Malaysia

Offshore companies in Malaysia can be termed as Labuan IBFC or we can say it Labuan International Business but has a couple of categories mentioned below.

  • Trading company
  • Non-Trading company
  • Investment company

Benefits for incorporating an offshore company in Malaysia(Labuan):

  • 100% ownership
  • Tax-free (Non-Malaysian sourced income)
  • Lower corporate tax
  • One person needed
  • No licenses or permit required
  • Registration Fee is very low
  • Privacy
  • Low Minimum Capital($10,000)
  • Easy to open a bank
  • Best offshore location(Corporate structure)
  • Excess to Asian markets
  • No tax is imposed on Labuan ports

Tax system in Malaysia:

Labuan offshore companies are formed under Labuan company act and LBATA(Labuan business activity tax act) which offers a great incentives for offshore companies.

  • If the company is just to hold investment then there will be no tax.
  • If a company is doing trade with non-Malaysian companies then a 3% tax on profit is imposed or one can pay the fee($4800) without the need for auditing.
  • If a company is a non-trading company and deals outside Malaysia then it is free from all the taxes.
  • If a Labuan offshore company is dealing with Malaysia entities(in non RM) then it will have to pay a 24% profit tax of audited profit under the Malaysia Income Tax Act(ITA).

What are the things needed to incorporate an offshore company in Malaysia?

  • Local address
  • Company secretary
  • Minimum share capital
  • 1 shareholder
  • KYC documents


Normally it takes 2- 4 days or even more as it’s totally depends upon the due diligence process of the government.


$600 is the setup cost we take in order to set up an offshore company in Malaysia.

How to open up a Offshore bank account in Malaysia?

After getting your offshore company incorporated in Malaysia, you will get the complete sets of documents that will help you to open up a bank account in Malaysia(Labuan).

Set up Offshore Company in Malaysia(Labuan)

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