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Guide to Start Online Business in Malaysia

Online businesses should consider setting up their company in Malaysia. For one, Malaysia at the center of the Asia Pacific region where growth and many significant changes are happening. The demand for goods and services in this region is rising rapidly and it’s great for online businesses. A recent report by Euromonitor International found that the region accounted for 41% of global spending in digital commerce in 2018. The segment is expected to grow in line with the growth of Internet users in the region.

In our Guide to Start Online Business in Malaysia, we provide you all the necessary information to kick start your business online!


Since the ASEAN Economic Cooperation (AEC) started in 2016, Malaysia has been the focal business hub that online businesses can reach out to the 630 million population in ASEAN countries. ASEAN is a fast-growing economic block and its potential are great. Online business is still at its infancy stage in some countries like Cambodia, Laos, Vietnam, and Myanmar. They are largely untapped markets with huge potential for growth. Using a Labuan Company, you can propel your business into this fast growing regional growth powerhouse easily.

Moreover, an online business is border-less and it has no limitation on where and how you sell across the globe. As a result, the smart thing to do is not to be limited by an entity on an onshore jurisdiction. Onshore jurisdiction is no longer workable for online businesses.

Labuan is a Midshore Jurisdiction!

When doing an online business, you should choose a mid shore jurisdiction like Labuan. Labuan International Business and Financial Centre (LabuanIBFC) is a “mid shore” jurisdiction. Labuan is therefore is considered more favorable for you because you get to enjoy all the advantages of an offshore entity with an onshore reputation. “Mid shore” also give your entity more flexibility and a larger market, where you are permitted to tap into Malaysia market. You, as a business operator of a Labuan company, can opt to stay in Malaysia with a valid business visa to run your business.

[Check out more on Labuan Company for multipurpose!]

The advantages of setting your online business with a Labuan Company are as follows:

  1. Labuan Company formation allows international businesses to conduct trade in a more efficient manner. The tax levied is 3% of audited net profit.
  2. Labuan Company is more tax efficient. This means your international business setup can reinvest the extra profits in more productive uses.
  3. Labuan has many onshore and offshore banks that allow businesses to receive and effect payment settlements in Malaysian Ringgit and any other foreign currencies. This eliminates the exchange risk for the business.
  4. Lower costs for new online business startups. Ability to stay in Malaysia with Labuan 2 year multiple entry business visa allows you to enjoy living in Malaysia at a very reasonable cost of living combined with tax flexibility of the Labuan company!
  5. It is common for online businesses to face the ever-changing business landscape, especially when their businesses expand internationally. In Labuan, you have the choice to switch your business focus to local Malaysia market and yet you still own 100% of your company!
  6. Labuan is an international financial center and it is also a “mid shore” jurisdiction which allows you to optimize your business with confidentiality legal provision. This enables your business to be more resilient and is more able to mitigate unexpected financial and legal risks.
  7. It is a fact that Online Business does enjoy exponential growth. During the growth phase, you may need to raise more capital funding and have to set up a more complex corporate structure. As a Labuan trust company, we can provide assistance to help you cope with the growth of your online business as well as helping you with your fundraising needs.


We offer a comprehensive service to assist you to launch your Labuan Online business as follows:

  • Advisory on the right entity and structure to incorporate the business
  • Immigration application for 2 years’ Labuan work visa for your convenient travel in and out of Malaysia with multiple family members
  • Helping you with all necessary filing and annual compliance while you can concentrate on your business
  • Assist you in engaging office space and secretarial solutions in Labuan for tax proofing purposes.


Send us your enquiry today to find out if Labuan entity is suitable to meet your objective. We “simplify the complexities” of your business investment.




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