Optimal Home, Malaysia My Second Home (MM2H)
Labuan guide

Labuan Company Registration Requirements

What a Labuan company needs to be set up, and what the Employment Pass route asks of the director who will live and work on the island.


Company registration

  • 1 director / shareholder, which can be fully foreign owned
  • No minimum paid up capital
  • 100% foreign ownership
  • Flexible business structures

Employment Pass (EP)

  • A top level position, for example Director
  • A salary of RM10,000 – RM20,000 per month
  • A physical office and residential address in Labuan
  • A 2-year visa, renewable
  • No minimum stay required
  • Allowed to do business and work
  • No purchase of property required
  • Benefiting 3 generations: spouse, children, parents / parents-in-law and foreign maid

What the company gets

  • Low tax incentive: corporate tax of 0% or 3%, with 0% indirect and withholding taxes
  • Private and confidential
  • Tax residency certificates available
  • Double Tax Treaties with more than 70 countries
  • Investment Protection Agreements with more than 50 countries
  • No exchange control regulation

Requirements can change, and approvals rest with the relevant authorities. Confirm the current position before you commit.

Cost and fees

What each route costs, from the paid up capital and the tax rates to the Employment Pass salary band, is set out in the cost and fees guide. The steps from first enquiry to a company that can trade are in the process guide.

Not sure which route fits you?

Send us your details and we will confirm your eligibility free of charge.

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