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Why does a Labuan company cost more than an offshore company?

Last updated: Oct 21, 2026, 17:46 (UTC+08:00)

Three things add cost: every Labuan company must be formed and run through a licensed Labuan trust company, trading companies need audited accounts for their tax return, and the low tax rate depends on staff and spending in Labuan. The package price covers the first; audit and substance are quoted separately once we know your activity.

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Source: Labuan Business Activity Tax (Requirements for Labuan Business Activity) Regulations 2021, Attorney General's Chambers of Malaysia, via Labuan FSA

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