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Guide on Creating Operational Substance for Your Labuan Entity

Creating Operational Substance for your Labuan Entity

Under the new world order of the OECD with its Exchange of Information standard, the need for “substance” for businesses will be predominant. Hence, it is advisable for you  to stand on principle on real, legitimate businesses with our guide on creating operational substance for your Labuan entity.

Four (4) main advantages why it is easy to create operational substance in Labuan for your business:

  • Available infrastructure within Labuan and Malaysia
  • Skillful and cheaper manpower 
  • Affordable set up cost Creating Operational Substance for Your Labuan Entity
  • Easy access to Labuan and Malaysia to perform your required duties


Six (6) major proof of commercial substance of a Labuan entity as seen from the Malaysian tax perspective:

  • Key management decisions are to be made in Labuan
  • All relevant compliance requirements pertaining to submission of Labuan tax returns should be made when due
  • Registered office located in Labuan
  • A physical operational office with accounts maintained in Labuan
  • Employment of local staff
  • Bank account in Labuan

We provide complete solutions to assist you in creating commercial substance for your business needs as follows:

  • Human Resource Hiring and Management
  • Office set up 
  • Accounting and billing 
  • Secretarial compliance
  • Corporate advisory

All Labuan entities are eligible to apply for Labuan Corporate Tax Certificate, click here to find out how to apply from Labuan Inland Revenue Department.

Labuan Staff Recruitment Service

Our dedicated team can provide a tailor-made service to meet the needs of your business encompassing a full range of human resource services including the sourcing, recruitment, payroll and all necessary paying system until it is fully up and running for your convenience. Creating Operational Substance for Your Labuan Entity

Human Resource (HR) Recruitment Services offer a complete of each step in the recruitment process from sourcing and selecting staff, through to the interview process and the induction of staff. Creating Operational Substance for Your Labuan Entity

1. Set Up the Payroll System for every staff
2. Open Account and Set Up Monthly Deduction System with Inland Revenue Department
3. Open Account and Set Up Monthly Contribution System with Socso (Social Security Insurance) for local staff
4. Open Account and Set Up Monthly Contribution System with Employee Provident Fund (EPF) for local staff

Let us know of HR service objective that you like to meet with your specifications of employment needs ie number of staff, expertise and their role to enable us to provide a quote of your service and the timeline.

Labuan Office Location Sourcing and Set Up Service


The automatic exchange of information and transparency is the new world order and changes the way businesses we operate cross borders business. The “new norm of offshore business operation” with the need for business to have “substance” will become increasingly important. Doing nothing is no longer an option. The intelligent solution is for you to demonstrate that you have active commercial substance to validate your Labuan business and to avoid the tax authority scrutiny.

Getting an office in Labuan for your Labuan business operations can be made easy through us! There are packages you can subscribe to suit your needs, price range from USD 80 onwards. We can set up right away for you, please click here! 

  1. The size and type of your office depend on your business nature. You can opt for co-share desk space or enclosed room of your choice.
  2. There is no limit number of staffs working in your office
  3. Any special facilities you require for the office to meet your business operation needs from personal assistance to secretarial support
  4. We provide the service for complete fit out including the purchase of furniture and fittings, set up phone lines, internet and renovation.

Send us your enquiry today for further advise on of Labuan is suitable to meet your business activities and commercial substance information for your Labuan entity! We simply “simplify the complexities” of your Labuan investment!