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1. Headline Numbers
| Feature | Labuan | Singapore |
|---|---|---|
| Corporate tax | 3% on audited profit (substance) else RM20k flat | 17% (partial exemption new cos) |
| Setup cost Y1 | $1,200–1,800 | $3,000–5,000 |
| Annual renewal | $900–1,200 | $2,000–3,500 |
| Tax treaties | 80+ incl. Malaysia, China | 90+ incl. Malaysia, China |
| Bank account | Video KYC possible, stricter | Easiest (DBS/OCBC), visit helps |
| Substance | Desk + RM20k spend + 1 staff | Real office expected |
2. When Labuan Wins
- Borneo–Kalimantan–China trading margins where 14 points of tax matter.
- Holding Sabah/Sarawak operating subsidiaries via Labuan parent.
- Shipping, fintech, IP holding with genuine (even light) substance.
- Budget under $2k/year all-in.
3. When Singapore Wins
- You need instant-tier banking, Stripe, VC fundraising.
- Clients insist on a Singapore invoice address.
- Staff on Employment Passes in Singapore.
- Fund/asset-management licensing.
4. The Substance Trap (Both Sides)
Labuan's 3% needs a real footprint: shared desk from ~RM2k/yr, RM20k local spend, one employee (shared officer counts initially), audited accounts ($600–1,000/yr). Miss it and you pay RM20,000 flat regardless of profit. Singapore's IRAS/MAS similarly challenge brass-plate companies. Budget substance before you incorporate, not after.
5. Practical Setup Path
- Labuan: licensed trust company (Labuan FSA licence) → name search → incorporation 2–3 days → video-KYC bank intro.
- Singapore: corporate secretary → BizFile name check → incorporation 1–3 days → bank appointment.
- Docs for both: passport, 3-month address proof, bank reference, 1-page business plan, source of funds.
Rule of thumb: under ~$200k profit and Borneo-linked trade → Labuan. Fundraising, fintech scale, or prestige banking → Singapore. Many groups run both: Labuan trading co + Singapore HQ.
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We intro licensed Labuan trust firms — no markup.
Not legal or tax advice. Confirm with a Labuan FSA licensed trust company / auditor and Singapore corporate secretary. Labuan Companies Act 1990; Singapore Companies Act.
