What accounting requirements do Labuan companies have?

Under the Labuan Companies Act 1990, every Labuan company must keep accounting records that correctly explain its transactions and financial position. These records must be retained for at least seven years and be available for inspection by Labuan FSA on request. Trading companies must also prepare audited financial statements annually and file a tax return with the Inland Revenue Board.

When is the annual return due for a Labuan company?

The annual return must be filed with Labuan FSA within one month of the anniversary of the company's incorporation date each year. It must be accompanied by the audited financial statements for trading companies, or financial statements prepared in accordance with the applicable accounting standards.

Do you handle Malaysian mainland tax compliance as well?

Yes. For clients with structures that span Labuan and mainland Malaysia, the team coordinates both Labuan and Malaysian tax compliance. This is particularly relevant for clients who have both a Labuan entity and Malaysian resident operations or who employ staff in Malaysia.

Labuan Accounting & Bookkeeping Services

One trusted team. Zero gap.

At Signature Trust Ltd, we deliver end-to-end accounting and compliance for Labuan companies, trusts, and foundations. From bookkeeping to tax returns, we ensure every deadline is met and every obligation covered.

Signature Trust Ltd handles bookkeeping, financial statements, tax return filing and annual compliance for Labuan companies, Labuan trusts and Labuan foundations.

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Every accounting obligation, covered

Bookkeeping & Ledger Maintenance

We record and reconcile all transactions on an ongoing basis, maintain the general ledger and produce trial balances ready for financial statement preparation. All records are retained for at least six years, in line with the Anti-Money Laundering and Anti-Terrorism Financing Act 2001, and are available for inspection by Labuan FSA upon request.
Financial Statements & Audit Coordination

We prepare annual financial statements in accordance with MFRS or MPERS, depending on your entity type. For trading companies, we coordinate the statutory audit with an approved auditor and ensure audited accounts are ready for presentation at the Annual General Meeting and submission to Labuan FSA.
Tax Return Filing

Labuan trading companies must file an annual tax return with the Inland Revenue Board and pay tax at 3% of audited net profits. We prepare and submit the return, manage correspondence with the IRB and advise on any positions that require clarification. For clients with Malaysian mainland operations, we coordinate with qualified Malaysian tax agents.
Annual Return & Compliance Calendar

Every Labuan entity must file an annual return with Labuan FSA. We manage the full annual compliance calendar for your entity: annual return preparation and submission, AGM facilitation, confirmation of registered office and any updates to the register of members, directors or beneficial owners as they arise during the year.
Management Accounts & Reporting

For clients who need a regular view of their entity's financial position, we prepare monthly or quarterly management accounts to an agreed format. This is particularly useful for group reporting, intercompany balancing, and demonstrating economic substance through documented local expenditure.

Why Signature Trust

Labuan Accounting Since 2012

We have been trusted by Labuan entities for over a decade, delivering compliance with confidence.

Approved Trust Officers

Our directors are approved Trust Officers under the Labuan Financial Services and Securities Act 2010, with 21+ years of director-level experience.

One Team, Year After Year

A multi-disciplinary team handles your accounting, secretarial and compliance in-house, from first conversation to annual return.

Data Security You Can Trust

Your financial information stays confidential, handled only by your dedicated engagement team.

From first conversation to compliant accounts

1

Consultation

A short scoping conversation to understand your entity type, transaction volume and any existing records.

2

Proposal

A transparent, fixed-fee engagement letter covering bookkeeping frequency, reporting format and year-end deliverables.

3

Onboarding

We set up the chart of accounts, migrate existing records and agree the document submission process before we take over the books.

4

Execution

Books maintained, management accounts produced and annual financial statements delivered. Always audit-ready.

Other services that work alongside accounting

Common accounting questions for Labuan entities

Frequently asked questions about accounting, tax filing and annual compliance for Labuan entities.

What financial records must a Labuan entity keep?

Accounting records means documentation and books necessary in the preparation of financial statements or records that will sufficiently explain the transaction and financial position of the Labuan entity or arrangement. Accounting records include records, either physical or stored on electronic media or in any form, of assets and liabilities, monetary transactions, ledgers, journals, and any underlying documents explaining the transactions, including but not limited to cheques, negotiable instruments, payment orders, invoices, receipts, letters of offer, contracts and agreements, of which in combination shall adequately reflect a full and true record that sufficiently explains all transactions and other acts engaged in by the Labuan entity, which are necessary in the preparation of financial statements.

What is the Labuan tax rate and who does it apply to?

Trading entities: 3% of audited net profits, provided substance requirements are met.
Non-trading investment holding entities: exempt under LBATA, subject to substance rules.
Failure to meet substance requirements: taxed at 24% under Malaysian corporate tax.

What accounting standards apply to Labuan entities?

Labuan entities prepare their financial statements in accordance with Malaysian Financial Reporting Standards (MFRS) or Malaysian Private Entities Reporting Standards (MPERS), depending on the size and nature of the entity. Larger or publicly accountable entities typically apply MFRS; smaller private entities may apply MPERS. Both frameworks are accepted by Labuan FSA.

How long must Labuan entities retain accounting records?

Labuan entities must retain accounting records for at least six years from the date of the transaction, in line with Section 17 of the Anti-Money Laundering and Anti-Terrorism Financing Act 2001. Records may be kept physically or on electronic media, and must be available for inspection by Labuan FSA on request.

Are non-trading Labuan companies required to be audited?

Labuan trading companies are required to prepare audited financial statements annually under the Labuan Companies Act 1990. Non-trading investment holding companies are generally not required to have an audit, but must still maintain proper accounting records and prepare financial statements. The exact requirement depends on the entity's activity classification and any conditions in its tax election under LBATA.

Labuan Accounting & Bookkeeping

One trusted team. Zero gap.

Every accounting obligation, covered

Why Signature Trust

Labuan Accounting Since 2012

Approved Trust Officers

One Team, Year After Year

Data Security You Can Trust

From first conversation to compliant accounts

Consultation

Proposal

Onboarding

Execution

Common accounting questions for Labuan entities

Related articles

Focus on Business. We will Handle the Numbers.

Labuan Accounting & Bookkeeping

One trusted team. Zero gap.

Every accounting obligation, covered

Why Signature Trust

Labuan Accounting Since 2012

Approved Trust Officers

One Team, Year After Year

Data Security You Can Trust

From first conversation to compliant accounts

Consultation

Proposal

Onboarding

Execution

Other services that work alongside accounting

Economic Substance

Legal Services

Corporate Services

Common accounting questions for Labuan entities

Related articles

Focus on Business. We will Handle the Numbers.