Labuan (Malaysia) offshore company formation

If you want to search or verify a company that is registered in Labuan, follow the below steps to check if the company is licensed or recognised under the jurisdiction:

Step 1: Visit the Labuan FSA official website

Visit www.labuanfsa.gov.my – this is the official site of the Labuan Financial Services Authority, which regulates all licensed entities within the Labuan International Business and Financial Centre.

Step 2: Visit the "Licensee List"

On the home page, look for the "Licensee List" link (usually in the "List & Schedule" or "Licensees" menu). The website provides downloadable PDFs or search lists of licensed institutions.

Step 3: Search by category or name

If you know the business type or firm name (e.g., trust company, insurance company, fund manager), scroll down the corresponding list to locate the firm information. Each entry lists the business type, license number, and firm name.

Step 4: Interpret the list of entities mentioned

Observe that the listing would include only licensed and registered companies (i.e., insurers, fund managers, trust companies, banks). Private Labuan companies that do not require licensing (i.e., normal trading or holding businesses) are not listed.

Step 5: Ask for verification by a Labuan trust company

If the company cannot be located in the Licensee List but you need to verify its incorporation anyway, you will have to reach out to a Labuan-licensed trust company or corporate service provider. These companies have an in-house registration database and can determine the legality status of the company, normally on formal application and due diligence.

Step 6: Take care of confidentiality requirements

Labuan's privacy regime is strong. What this means is that, unlike Malaysia's local company register (SSM), Labuan does not offer open-access databases on all business entities. Company searches typically require professional assistance or regulatory support.

To establish a franchise business in Malaysia, companies must adhere to the Franchise Act 1998, which is regulated by the Ministry of Domestic Trade and Cost of Living (KPDN). With strong experience in providing cross-border business expansion services, we assist customers in establishing scalable and compliant franchise structures in Malaysia.

All foreign and local franchisors have to register the franchise with KPDN's Franchise Development Division before presenting or operating within the Malaysian marketplace. The disclosure document, agreement of franchise, operation manual, training plan, and proof of trademark registration shall accompany the application. Foreign franchisors are also required to select a local representative or master franchisee.

Franchisees are also required to be registered with KPDN before they can carry on business. The franchise agreement must meet the specifications required under Malaysian law, including duration, renewal terms, conditions of termination, and obligations of each party.

Malaysia offers a growing market with a sound legal framework for franchise expansion, most notably in the food & beverage, education, and retail sectors. However, domestic laws need to be approached with care, particularly in language use, conflict resolution, and intellectual property protection.

Having had vast experience in offshore and cross-border franchising, we provide support to businesses from registration up to operational setup. Our services vary from compliance to trademark security, acquisition of partners, and local representation, and we are a smooth and compliant market entry solution for franchisees and franchisors alike in Malaysia.

As an experienced offshore service provider with over a decade of track record, we are familiar with the possibilities and regulations for foreigners to establish a company in Malaysia. The investment-friendly environment, strategic location, and robust infrastructure of Malaysia make it an attractive destination for foreign business persons in various sectors.

Foreigners have the option to enter trading, manufacturing, or services, provided they adhere to the Companies Act 2016 and obtain relevant approvals. A possible alternative is registering a private limited company (Sdn Bhd) through the Companies Commission of Malaysia (SSM), with a minimum paid-up capital (typically MYR 1) and a local director—often facilitated by the addition of a nominee director, a service we perform professionally. The food and beverage, e-commerce, and tourism sectors are particularly appealing due to Malaysia's growing consumer market and regional integration.

For those who want to aim at larger investments, the Labuan International Business and Financial Centre offers a tax-efficient platform for offshore trading, wealth management, or fintech enterprises, with 100% foreign ownership permitted. Alternatively, IT consultancy services in education or healthcare tap into Malaysia's requirement for expertise, with work permits such as the Employment Pass, which we assist to acquire.

Retail and franchise businesses are also present, but franchises must abide by the Franchise Act 1998. Leveraging our 10 years of cross-border experience, we support clients in compliance, licensing, and finding partners for smooth market entry. Foreign innovation is welcomed by Malaysia's multi-dimensional economy—our tailored solutions help you unlock this potential to its best.

Companies incorporate in Labuan for its strategic location, tax efficiency, and flexible business environment. As a midshore financial center under Labuan IBFC, it offers key advantages for trading, holding, and financial services.

• Low tax rates: 3% on trading profits or 0% for non-trading/holding companies
• Full foreign ownership and free repatriation of profits
• Access to select double tax treaties via Malaysia, but applicability depends on the partner country and nature of the income.
• Fast incorporation (5–7 days) with low capital requirements
• Confidentiality: Beneficial owner information is filed with the Labuan FSA but is not available to the public, ensuring confidentiality while maintaining regulatory oversight.
• Ideal for: International trade, investment holding, fintech, fund management

Labuan companies may access certain Malaysian double tax treaties, but applicability depends on the partner country and nature of the income. Investors should check whether Labuan entities are covered under relevant DTAs.

This makes Labuan especially attractive for international trading companies, holding structures, investment funds, wealth management, and fintech ventures looking to operate across Asia with tax efficiency and legal clarity.

In Malaysia, a business license is a legal permit from the government that authorizes a person or company to carry out business within this particular country. This is a law for both local and foreign businesses in order to guarantee that local operation complies with Malaysia's laws, Safety Norms and Regulations.

A business license in Malaysia may refer to one or more permits depending on the business nature and location, including:

• A premise license
• Signboard license
• Sector-specific approvals

Securing a business licence is very important not only for legal grounds but also because it would build the credibility of the customers, suppliers and financial institutions. Operating without the appropriate licenses can result in fines, legal action, or forced business closure. 

A business license in Malaysia is an official approval or permit issued by government authorities, allowing individuals or companies to legally operate within the country. It provides proof that the company operates within local jurisdictions guidelines, safety laws per regulations and zoning resolutions.

Depending on the nature of the business, industry, and location, different types of licenses may be required. They essentially refer to one of these categories in three ways:

1. General Licenses (applicable to all businesses):
• Company Registration with the Companies Commission of Malaysia (SSM) is a mandatory prerequisite for most businesses before obtaining other licenses.
• Income Tax Registration with the Inland Revenue Board (LHDN).
• Employees Provident Fund (EPF) and SOCSO registration if hiring employees.
• Business Premises License and Signboard License, usually issued by local municipal councils.
2. Sector-Specific Licenses:
• Sector-specific licenses are required for industries such as finance (regulated by Bank Negara Malaysia), healthcare and F&B (regulated by the Ministry of Health), and telecommunications (regulated by MCMC).
• For online businesses or e-commerce platforms, registration with the Malaysia Communications and Multimedia Commission (MCMC) and compliance with the Consumer Protection regulations may be required.
3. Special Permits or Approvals:
• For businesses involved in import/export, manufacturing, or foreign labor employment.
• May require clearances from agencies like MITI, Customs Department, or Immigration Department.

Malaysia stands out as a strategic location for entrepreneurs and investors looking to tap into Southeast Asia’s vibrant economy. A stable political setup, multi-lingual workforce, good infrastructure and incentives in several sectors have made Malaysia a great place to start a business in 2025. Below are some of the best businesses to start in Malaysia to consider:

1. E-commerce and Online Retail

E-commerce is thriving in Malaysia, supported by high internet penetration, a digitally-savvy population, and growing trust in online transactions. The Malaysia Digital Economy Blueprint (MyDIGITAL), backed by the government, also rides on digital entrepreneurs.

• Niche e-commerce (eco-friendly, halal, or handmade products)
• Dropshipping and private label brands
• Grocery or meal delivery services

2. Tourism and Hospitality

The tourism sector has shown strong recovery post-pandemic, with the government rolling out incentives and visa facilitation programs to attract more tourists.

• Boutique hotels and guesthouses
• Eco-tourism experiences
• Travel agencies and visa assistance services

3. Halal Food & Beverage (F&B)

Given Malaysia’s role as a global leader in halal certification, halal F&B businesses hold significant potential, both domestically and for export.

• Halal-certified restaurants and catering
• Packaged halal food production
• Halal e-commerce platforms

4. Education and Training

A youthful population and supportive government initiatives make education plays, particularly those incubated on online platforms are fertile markets in Malaysia.

• Online tutoring and virtual learning tools
• Digital and IT skills training (e.g., coding boot camps)
• English and test preparation centers (IELTS, TOEFL)

5. Health and Wellness

Malaysia is a regional hub for medical tourism, with visitors drawn to its affordable and high-quality healthcare. Health-conscious consumer behavior also supports wellness businesses.

• Medical tourism facilitation services
• Health-tech startups (telehealth, fitness apps)
• Spas, wellness centers, and organic product retail

3% of Audited Net Profit for trading activities.

No tax for Non-Trading activities.