Do Labuan companies need to file an annual return?

Yes. Under the Labuan Companies Act 1990, all Labuan companies, whether engaged in trading or non-trading activities, are required to file an annual return with the Labuan Financial Services Authority (Labuan FSA). This filing obligation applies even if the company did not actively trade during the year.

The annual return serves as an official update of key corporate information, including the company’s registered details, shareholding structure, directors, secretary, and compliance status. It is separate from the annual tax filing required under the Labuan Business Activity Tax Act 1990 (LBATA) for companies engaged in Labuan business activities.

Key points to note:

• Deadline – The annual return must be lodged not later than 30 days before the anniversary of the company’s incorporation. If the annual return is filed late, the company commits an offence under the LCA and may face monetary penalties. Note: strike-off is generally triggered by non-payment of annual fees under section 151, not merely by a late annual return.
• Applies to all Labuan companies (both trading and non-trading) – Other entities like Labuan trusts and foundations follow their own annual filing rules with Labuan FSA.
• Filing content – The annual return follows the prescribed form and typically includes the registered office address, where the register of members is kept, particulars of charges/indebtedness, details of directors and secretaries, the auditor’s name and address, and other matters relating to the company’s accounts.
• Additional compliance – For trading entities, LBATA taxes 3% of audited net profits (subject to substance requirements); the former RM20,000 election was removed from 1 January 2019. Non-trading entities are generally taxed at 0% under LBATA. Under the LCA, appointing an auditor isn’t universally mandatory, but companies must keep proper accounting records, and trading entities will, in practice, need audited financial statements to support their LBATA filing.

Note: Late filing may attract monetary penalties. Strike-off generally occurs for non-payment of annual fees under section 151, after statutory notices and grace periods.

At Offshore Company Services, we help clients manage all Labuan annual compliance requirements, from preparing and filing annual returns to handling tax submissions, ensuring no deadlines are missed. With our support, your Labuan entity stays in good standing year after year, allowing you to focus on business growth while we handle the regulatory details.

=> Full Information: Expert Insights on Labuan Company Registration