Labuan IBFC Licensed Trust Company
Our Services

Labuan Company Formation & Corporate Services

Labuan entities, particularly companies incorporated under the Labuan Companies Act 1990, are required to appoint a licensed Labuan trust company as their incorporation agent. Signature Trust may act as your incorporation agent and resident secretary. From choosing the right structure to keeping it in good standing every year, Signature Trust handles every element of your Labuan corporate setup.

Licence
Labuan Trust Company regulated by the Labuan FSA
Experience
21+ Years Director Experience
Team
Approved Trust Officers, Multi-Disciplinary Team
Clients
3,000+

Labuan company formation: choosing the right entity type

Signature Trust handles incorporations, registration and administration of Labuan entities. Our team includes licensed trust officers with more than 21 years of experience establishing and maintaining Labuan entities. You deal with one team, from the first conversation to the annual return, every year after.

Setting up in Labuan IBFC involves more than filing a registration form. The entity type you choose, whether a Labuan company under the Labuan Companies Act 1990, a protected cell company, a partnership or a foreign company branch, affects your tax position under the Labuan Business Activity Tax Act 1990, your compliance obligations and how the structure holds up over time. Getting that first decision right saves significant rework later.

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Labuan company types: which structure fits your situation?

The right Labuan entity depends on your intended activities, ownership structure and tax position. We work through this with you before anything is filed. The main structures available in Labuan IBFC are:

Labuan Investment Holding Company

The holding company can be broadly divided into two categories:

a) Companies that hold a variety of assets and earn different types of income (e.g. interest, rents, etc.).

b) Companies that hold equity participations and earn only dividends and capital gains.

Comply substance requirements, NIL TAX.

Labuan Trading Company

Labuan trading activity includes banking, insurance, trading, management, licensing, or any other activity which is not a Labuan non-trading activity. Taxed at 3% on audited net profits. May be fully foreign-owned. Requires economic substance in Labuan.

Labuan Trust

The creation of a Labuan trust is generally for an individual or a settlor to give specific property to a third party to be held for the benefit of others, including charities. The LTA also allows the creation of Purpose trusts, Charitable trusts, Spendthrift or protective trusts, and Labuan special trust.

Labuan Foundation

A Labuan foundation may be established to manage its own property for any lawful purpose which may be charitable or non-charitable.

Labuan Limited Partnerships & Limited Liability Partnerships

Flexible profit-sharing structure. Used for fund vehicles, joint ventures and real estate holdings.

Foreign Labuan Company, Labuan Branch

Extends an existing foreign company into Labuan IBFC without forming a new entity.

Private or Public Company

A Labuan company may be incorporated as a private or public company, depending on the number of shareholders and whether shares are offered to the public. Most client structures use the private company form.

Company Limited by Shares or Limited by Guarantee

A Labuan company may limit member liability by shares (the most common form) or by guarantee, where members commit to contributing a fixed amount in the event of a winding up. The appropriate form depends on the entity's purpose and ownership structure.

Incorporating your Labuan entity

Once the right structure is identified, we handle the full incorporation process with Labuan FSA. This includes name reservation, preparation of constitutional documents, submission of all required filings under the Labuan Companies Act 1990, and coordination of the statutory registry process.

We provide a full KYC checklist at the outset and guide you through every step so there are no surprises and no delays caused by incomplete paperwork.

Labuan Licences

Certain financial activities in Labuan IBFC require prior approval from Labuan FSA. We assist with the full licence application process: eligibility assessment, business plan preparation, documentation and submission.

View all regulated activity categories

Insurance

  • Insurer, Reinsurer
  • Underwriting Manager
  • Insurance Manager
  • Insurance Broker
  • Captive Insurer

Banking & Finance

  • Bank, Investment Bank
  • Development Finance Company
  • Building Credit Company
  • Factoring Company
  • Credit Token
  • Money Broker

Trading & Leasing

  • International Commodity Trading
  • Leasing Company

Funds & Securities

  • Fund Manager
  • Fund Administrator
  • Securities Licensee

Trust & Management

  • Trust Company
  • Company Management

Exchange & SRO

  • International Financial Exchange
  • Self-Regulatory Organisation

Opening your Labuan bank account

A Labuan entity can open multi-currency accounts with banks operating in Labuan IBFC, including international banks with a local branch. Bank account opening is handled separately from incorporation but is a natural next step once your entity is formed.

Signature Trust manages the full bank account opening process on your behalf. We identify the most suitable bank for your business profile, prepare the required documentation, submit the application and follow it through to approval. Where the bank requires the account signatories to attend in person, we coordinate that arrangement as well.

Why Signature Trust

1,000+ Entities Formed

Signature Trust holds a trust company licence issued by Labuan FSA under the Labuan Financial Services and Securities Act 2010. With over 1,000 entities formed, we bring proven regulatory knowledge to every incorporation.

Labuan FSA Approved Trust Officers

Our directors are approved Labuan Trust Officers with deep experience across entity formation, structuring and ongoing corporate administration for international clients.

In-House, Formation to Compliance

A multi-disciplinary team work together on each engagement, ensuring your entity is correctly formed, properly documented and fully compliant from day one.

Your Trusted Intermediary

Every client engagement is handled with strict confidentiality. We act as a trusted intermediary, keeping your corporate affairs private and your interests protected.

From enquiry to fully formed entity

1

Consultation

We discuss your objectives, ownership structure and intended activities to determine the most suitable Labuan entity type. If a regulated licence is required, we include a preliminary eligibility assessment at this stage.

2

Proposal

We prepare a tailored proposal setting out the recommended entity type, required licences, KYC documentation checklist and a fixed-fee engagement letter. No surprises.

3

Onboarding

We collect KYC and due diligence documentation from all directors, shareholders and beneficial owners, then submit the incorporation application to Labuan FSA.

4

Execution

We prepare constitutional documents, issue share certificates, open statutory registers and support bank account opening. Thereafter we manage all recurring secretarial and compliance obligations: annual returns, statutory filings and structural changes.

Optional Services (Engaged According to Your Needs)

Alongside our core corporate services, clients may choose to engage us for additional support depending on their requirements:

Common questions about Labuan corporate services

Frequently asked questions on Labuan company formation, ownership and annual maintenance.

Can a foreigner own 100% of a Labuan company?

Yes. Labuan companies can be 100% foreign-owned. There is no requirement for a local Malaysian shareholder. This applies to both trading companies and non-trading investment holding companies. For regulated entities such as banks and fund managers, Labuan FSA will assess the suitability of shareholders as part of the licence application, but foreign ownership is permitted.

What is the difference between a trading and non-trading Company?

A Labuan trading company conducts active business operations such as banking, insurance, management, licensing, or other commercial activities. It is subject to Labuan business activity tax at 3% of audited net profits, provided substance requirements are met. A non-trading company (investment or holding company) holds passive assets such as securities, shares, loans, deposits, or property (located in Labuan) and does not carry on active trading. It may be taxed at 0% when compliant with requirements. The distinction affects both tax treatment and economic substance obligations, so choosing the correct classification at the outset is important.

Is a local director or company secretary required?

Under the Labuan Companies Act 1990 (as amended), a Labuan company must appoint at least one director of any nationality, and at least one of them must be a resident director. A resident director may be either a trust officer of a Labuan trust company approved by Labuan FSA, or a natural person who meets the criteria prescribed by the Authority. Every Labuan company is also required to appoint at least one resident secretary, who must be an officer of a Labuan trust company or a wholly owned subsidiary made available for appointment. Signature Trust satisfies the resident secretary requirement through its licensed trust officers and provides full company secretarial services.

Resident Director: any natural person who has attained the age of eighteen years old, has full legal capacity, and has consented to the appointment as a resident director.

Can a Labuan company open a bank account in Malaysia?

Yes. Labuan entities can open multi-currency accounts with banks operating in Labuan, including international banks with a Labuan branch. Account opening is subject to each bank's KYC requirements and internal policies. We assist with introductions and can accompany clients to the bank where required. Note that the bank account opening process is independent of the incorporation and is handled separately.

What are the annual maintenance requirements for a Labuan Company?

All Labuan companies must file an annual return with Labuan FSA, maintain a registered office in Labuan, prepare financial statements in accordance with the Act, hold an Annual General Meeting, and file a tax return with the Inland Revenue Board of Malaysia.

Our annual retainer covers all mandatory obligations, ensuring compliance is seamless.

Optional services: clients may choose to engage us for additional support such as preparation of accounts, filing of tax returns, other compliance or advisory services.

This flexible approach ensures that nothing falls through the gaps while allowing clients to tailor the level of support to their needs.

Does a Labuan company need a physical office?

All Labuan companies require a registered office address, which is provided by a licensed Labuan trust company. For companies subject to the economic substance requirements, a physical office with adequate space and full-time employees is also required. A virtual address alone does not satisfy the substance test. We advise on what is needed for your specific entity type and can arrange both registered office and physical office solutions. See our Economic Substance page for full details.

Ready to set up your Labuan entity?

Tell us your objectives and we will identify the right structure and walk you through the full process.