Labuan is an island strategically located in the Asia-Pacific region which has special tax status. It is administered by the Federal Government of Malaysia and has a developed infrastructure. It is a suitable, credible location in Asia with less bureaucracy than Hong Kong.

Labuan was declared a tax haven in 1990 as the first step toward developing it into Malaysia's own offshore financial centre. It is particularly popular for Islamic companies and structures.

• Exchange controls are very liberal
• Incorporation – 5 days
• Economically strong and politically stable
• No restrictions on where meetings are held
• 3 per cent tax on net audited profits of offshore trading companies. Those that do not trade do not pay tax.