TL;DR: Asia-focused SME → Labuan (cheaper, simpler). MENA/EU clients or prestige → Dubai (0% free zone, 9% mainland, stronger brand).
| Labuan | Dubai | |
| Setup | ~$1,200 | $3,000+ |
| Tax | 3% | 0–9% |
| Banking | MY USD banks | UAE + global |
| Residency perk | Work permit path | Golden visa path |
Reputation check
Dubai invoices clear compliance reviews faster with EU/US clients. Labuan is perfectly legal but triggers more questions from conservative banks — keep substance documents ready.
Verdict
Under $500k profit with Asian clients → Labuan wins on cost. Above that or MENA-facing → Dubai's brand premium pays for itself.
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