Labuan, a mid-shore jurisdiction off the coast of Sabah (North Borneo), is an increasingly popular base for companies seeking political stability and a business-friendly environment.
The island of Labuan was designated a free trade zone and financial centre in 1990. Its low taxes, double taxation agreements, robust legal system, sharia-compliant financial products and services, and adherence to international best practices and standards, makes the Labuan International Business and Financial Centre (Labuan IBFC) an attractive investment destination.
Labuan is home to Malaysia's only deep-water port, and shares the same time zone as many major Asian cities, offering convenience for business dealings throughout the region.
The favourable tax regime means no tax is payable on non-trading activities and Labuan trading activities are taxed at 3% of net audited profit, or at a fix rate of RM20,000.
Centrally located, and in close proximity to Southeast Asia’s emerging markets and financial centres, Labuan is well placed to tap into investment opportunities in the Asia Pacific region.
Being one of the federal territories of Malaysia, Labuan offers excellent and internationally accepted laws and structures for investment holding, funds, leasing, shipping, insurance, banking, trading and wealth management activities.
Our core areas of expertise
Our Labuan office has specialists who offer a wide range of corporate services to businesses conducting cross-border trade or investment, including advising on the use of suitable corporate structures and providing fund administration, custodian, accounting, corporate secretarial and trade support services. We also assist high-net-worth individuals to consolidate and protect their wealth in a tax-efficient way by assisting in the setting up and administration of Labuan trusts and foundations.
Apart from setting up the various types of entities in Labuan, our team provides incorporation services for companies from other offshore jurisdictions.
Additionally, our Labuan office offers incorporation, management and administration services for special purpose vehicles (SPVs) in the structured finance area.
About TMF Group’s Labuan office
For more than 20 years, TMF Group Labuan has provided clients with a complete suite of private and corporate services to meet their personal and business needs.
We obtained a Labuan Trust Company license in 1992 to act as trustee, and we now have a comprehensive range of Labuan trust company services that includes Labuan wealth management and asset management services, such as trustee and foundation services and Labuan corporate structuring services.