Labuan as an offshore jurisdiction
Labuan for international business
Labuan offshore is not just a tax haven, but a full-fledged international financial centre integrated into the global infrastructure through the International Banking and Financial Centre Labuan (IBFC) and the strict prudential supervision of the Labuan FSA. The practice of COREDO confirms: Labuan combines the flexibility of corporate structures with transparency and compliance with OECD standards, which is critical for legally conducting business in 2025.
Corporate governance and compliance
Solutions developed at COREDO take into account corporate governance requirements: the mandatory appointment of a resident director, a corporate secretary, maintaining records and complying with transparency standards. Labuan requires compliance with international AML standards, corporate reporting and auditing, which helps minimize reputational and legal risks when working with European and Asian banks.
Company registration in Labuan: step-by-step instructions
company registration in Labuan: it is an effective way to enter the international market with optimal tax conditions and flexible opportunities for doing business. Thanks to its status as an offshore financial centre and an attractive jurisdiction, Labuan offers a number of advantages for entrepreneurs seeking access to international financing and confidentiality. Below we will review the main features of offshore companies in Labuan and the key stages of their registration.
Offshore companies in Labuan
COREDO’s experience has shown that the optimal choice of company type depends on the client’s objectives:
- Trading companies: suitable for international trade, e-commerce, and financial services. Audit is mandatory; a corporate income tax of 3% applies.
- Non-trading companies – used for holding structures, asset management, and investments. They are exempt from corporate income tax and have simplified reporting.
- Offshore holdings – allow centralizing share ownership and facilitating the repatriation of income with minimal tax costs.
Registration and required documents
The COREDO team has completed dozens of offshore company registration projects in Labuan for clients from the EU, CIS and Asia. The process includes:
- Choosing the company type and preparing the incorporation documents (articles of association, shareholders’ resolution, beneficial owner information).
- Collection of passport details, address verification, business model description, and information on sources of funds.
- Submission of the application to Labuan FSA through a licensed corporate secretary.
- Registration timeframe: from 5 to 10 working days with correctly prepared documents.
- Company registration cost in Labuan: from 5,000 to 7,500 USD, including corporate secretary services and legal support.
Taxation in Labuan: benefits and features
Taxation in Labuan is characterized by special incentives and unique conditions for international business and investors. Attractive tax rates, minimal obligations for trading and non-trading companies, as well as exemption from a number of taxes make the jurisdiction appealing to entrepreneurs seeking to optimize their tax burden.
Corporate tax and 3% profit tax
The key advantage of Labuan: a 3% corporate tax for trading companies, or a fixed fee (20 000 MYR) in the absence of taxable activity. For non-trading and holding structures, exemptions from income tax, dividends and capital gains apply. The solution developed by COREDO enables the use of flexible tax regimes to optimize global tax planning.
Double taxation agreements
Financial services and banks in Labuan
financial services and banks in Labuan provide businesses with access to a wide range of products: from classic banking services to modern digital solutions. Thanks to flexible regulation and developed infrastructure, companies can quickly open a corporate account and enter promising Asian markets.
Open a corporate account in Labuan
Opening an account in Labuan requires verification of the source of funds, a business plan and compliance documents. International banks and licensed financial institutions of the IBFC provide access to multi-currency accounts, SWIFT operations and investment products.
COREDO’s practice confirms that a preliminary audit and preparation of a compliance dossier speed up account opening and minimize the risk of refusal.
Additional financial services and insurance
Labuan offers international insurance solutions, investment funds, asset management services and e-commerce support. Specialized licenses are available for digital and trading companies, allowing them to legally work with cryptocurrencies, payment systems and online commerce.
AML and Compliance in Labuan
Labuan strictly complies with AML, FATF and OECD requirements. The Labuan FSA implements prudential supervision, mandatory corporate reporting and audit for trading companies. COREDO’s solutions integrate KYC procedures/AML, internal controls and corporate reporting preparation, enabling clients to meet the requirements of European and Asian banks.
Risks of offshore companies in Labuan
Legal risks include changes in tax and currency regulation, compliance and transparency requirements. COREDO’s experience has shown that a preliminary audit of the structure, regular updating of corporate documentation and engagement with the regulator minimize the risks of account freezing and refusal of registration.
Practical recommendations for entrepreneurs
Practical recommendations for entrepreneurs help avoid common mistakes at the start of a business and build a sustainable management model. This section gathers key tips that will help choose the optimal type and structure of a company taking into account tasks and resources.
How to choose the type and structure of a company
I recommend starting with an analysis of the business model, goals, and the partners’ jurisdictions. For international trade and e-commerce, a trading company with a 3% tax. For asset management and investments — a non-trading or holding structure with tax exemption.
Corporate governance and reporting
Interaction with banks – best practices
Before opening an account, prepare a compliance dossier, a business plan, and documents proving sources of funds. COREDO solutions allow you to speed up the account opening process and ensure access to international financial institutions.
Scaling your business through an offshore company in Labuan
Labuan is an optimal platform for scaling business in the Asia-Pacific region, integrating with European and Asian markets, legal tax management, and asset protection. The COREDO team implements strategies that allow clients to expand their businesses quickly and safely by leveraging the advantages of Labuan’s offshore jurisdiction.
Comparison table of Labuan offshore taxes
| Company type | Corporate income tax | Mandatory audit | tax incentives | registration specifics |
|---|---|---|---|---|
| Trading company | 3% or fixed fee | Yes | No tax exemption | Mandatory financial reporting |
| Non-trading company | Exempt | No | Exemption from corporate income tax | Simplified reporting |
| Holding company | Exempt | Depends on activity | Exemption from dividend and capital gains taxes | Special tax conditions |