AMS Trust Company Limited

AMS Trust Company Limited A Regulated Labuan Trust Company by Labuan Financial Services Authority (Labuan FSA), with more than 10 years of proven track records.

10/03/2026

FAQ: Labuan Company & Labuan Partnership

1. When is a Labuan Company generally more suitable?

A Labuan Company is typically suitable where a separate legal entity, centralized management, and clear segregation of liabilities are required. It is commonly used for international trading, holding, and service-based activities.

2. Can foreigners fully own a Labuan Company or Labuan Partnership?

Yes. Both Labuan Companies and Labuan Partnerships may be fully foreign-owned.

3. What banking options are available for a Labuan Company or Labuan Partnership?

Both entities may apply to open accounts with Malaysian domestic banks and Malaysian offshore banks. In addition, Labuan entities are generally permitted to open bank accounts with banks in various jurisdictions worldwide, subject to the respective banks’ requirements and approvals.

4. When is a Labuan Partnership commonly used?

Labuan Partnerships are commonly used for joint ventures, private equity structures, fund-related arrangements, and professional collaborations, where flexible ownership and profit-sharing arrangements are required.

5. What is the tax rate for Labuan Company and Labuan Partnership?

Both entities may enjoy a 3% tax rate on trading activities and a 0% tax rate on investment activities under the Labuan Business Activity Tax Act 1990 (LBATA), subject to compliance with the prescribed economic substance requirements.

02/03/2026

Reminder: Form E Submission

All Labuan entities with or without employees are required to submit Form E to the Inland Revenue Board of Malaysia (IRBM) annually.

Please note that the deadline is 31 March each year.

Timely submission is important to ensure compliance and avoid penalties.

03/02/2026

Governance of a Labuan Partnership

Effective governance is an important consideration for Labuan Partnerships, particularly where the structure is used for joint ventures, investment activities, or fund-related arrangements.

A Labuan Partnership is expected to maintain clear roles and responsibilities between partners, appropriate decision-making processes, and proper documentation in accordance with the applicable regulatory and statutory requirements.

For Limited Partnerships (LPs), governance typically distinguishes between the management role of the general partner and the rights of limited partners. In a Limited Liability Partnership (LLP), governance arrangements should clearly define management authority while ensuring accountability among partners.

Warm wishes to all observing Thaipusam, from AMS Trust.
30/01/2026

Warm wishes to all observing Thaipusam, from AMS Trust.

22/01/2026

Governance of a Labuan Company

Strong governance is a key requirement for companies operating under the Labuan regulatory framework. A Labuan company is expected to maintain appropriate oversight, decision-making processes, and internal controls that are commensurate with its business activities.

Governance obligations include ensuring proper board and management oversight, adherence to regulatory and reporting requirements, and compliance with applicable economic substance requirements to enjoy Labuan preferential tax.

Effective governance not only supports regulatory compliance but also enhances credibility with regulators, financial institutions, and counterparties.

A Labuan company is incorporated under the Labuan Companies Act 1990 and regulated by the Labuan Financial Services Auth...
20/01/2026

A Labuan company is incorporated under the Labuan Companies Act 1990 and regulated by the Labuan Financial Services Authority (Labuan FSA). It is commonly used to support international business activities, including holding, trading, and service-based operations.

Labuan companies offer flexibility in ownership and operations, with 100% foreign ownership permitted, and may benefit from preferential tax treatment under the Labuan Business Activity Tax Act 1990 (LBATA), subject to meeting the applicable economic substance requirements.

Depending on the nature of activities, a Labuan company may be structured as a trading, service-based, or holding entity, each with its own regulatory and tax considerations.

For further information on suitability and structuring considerations, feel free to reach out to us.

Address

Unit Level 11(A), Main Office Tower, Financial Park Labuan, Jalan Merdeka
Labuan
87000

Opening Hours

Monday 08:30 - 17:30
Tuesday 08:30 - 17:30
Wednesday 08:30 - 17:30
Thursday 08:30 - 17:30
Friday 08:30 - 17:30

Telephone

087-451799

Website

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