Labuan Auditing Services

We are an approved auditor by Labuan Financial Service Authority (LFSA) to perform auditing for Labuan entities. We have experience dealing with local and overseas labuan companies to deliver a smooth and efficient auditing process.
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Labuan Auditors

LABUAN FEDERAL TERRITORY - Approved Labuan Auditors for Statutory Audit

Labuan is a Federal Territory of Malaysia, located off the coast of Borneo. It is made up of an island and several smaller islets. It is situated in the vicinity of the Sabah state of Malaysia and the Sulu Archipelago of Philippines.

Labuan is known as the Labuan International Business and Financial Centre (IBFC). It is a special economic zone that offers a range of tax incentives and business-friendly regulations to attract foreign investment. The Labuan IBFC is governed by the Labuan Corporation, which is responsible for promoting and developing the economic and financial activities in the territory.

The main industries in Labuan Federal Territory include oil and gas, shipping, international trade, and financial services. The Labuan IBFC is also a popular location for businesses looking to establish a presence in Southeast Asia, due to its strategic location and the availability of a well-trained workforce.

CWC & ENG PLT is one of the approved auditors licensed by LFSA - Click Here

Labuan Auditing Requirements

Under Labuan Companies Act 1990, A Labuan company shall keep proper accounting and other records as will sufficiently explain the transaction and financial position of the company.

Labuan Licensed Companies

In Labuan, licensed entities are required to submit audited financial statements to the Labuan Financial Services Authority (Labuan FSA) within 6 months from the financial year end. Labuan licensed entities are companies or businesses that are licensed under Labuan Financial Services and Securities Act 2010 to carry out specific licensed activities.There are several types of Labuan licensed entities, including:

  • Labuan insurer, reinsurer, takaful operator or retakatful operator
  • Labaun underwritting manager
  • Labuan insurance manager or takaful manager
  • Labuan insurance broker or takaful broker
  • Labuan captive insurer or captive takaful
  • Labuan bank, investment bank, islamic bank or islamic investment bank
  • Labaun trust company
  • Labuan leasing company or islamic leasing company
  • Labuan credit token or islamic credit token company
  • Labuan development finance company or islamic development finance company
  • Labuan building credit company or islamic building credit company
  • Labuan factoring or islamic factoring company
  • Labuan money broker or islamic money broker
  • Labuan fund manager
  • Labuan securities licensee or islamic securities licensee
  • Labuan fund adminsitrator
  • Labuan company management
  • Labuan International Financial Exchange
  • Self-regualtory organisation or islamic self-regulation organisation
  • Labuan international commodity trading company
These entities are licensed by the Labuan FSA and comply with the regulations and guidelines established by the authority. This includes submitting regular financial statements, maintaining accurate and complete financial records, and having internal controls in place to prevent fraud and errors.


All Labuan licensed entities are required to appoint an approved auditor and file audited financial statements with the Labuan FSA on an annual basis. The auditor must be an approved Labuan auditor and must have the necessary experience and qualifications to conduct the audit.


Other Labuan Companies/Investment holding Companies 

Under Labuan Companies Act 1990, other Labuan companies or investment holding companies shall lay audited accounts or unaudited accounts at the member general meeting within nine (9) months from the financial year-end.

Nevertheless, with the deletion of Section 7 of the Labuan Business Activity Tax (Amendment) Act 2020 9, a Labuan taxpayer effective from 1 January 2019 (year of assessment 2020) can no longer elect to pay tax at the fixed amount of MYR 20,000 for each year of assessment. Therefore, tax will be charged at the rate of 3% or 24% on audited net profits for the eligible labuan business activities. Hence, other labuan companies are now required to submit audited financial statements together with tax return to the Inland Revenue Board (IRB) in Malaysia.

To be eligible for 3% tax rate in Labuan, a Labuan entity must be:

  •  undertaking business activities listed in the P.U. (A) 423 and;
  •  fulfilled substance requirements (number of full time employee in Labaun & minimum operating expenditure incurred in Labaun)

The other list of business activities (other than licensed entities) recognised in P.U. (A) 423 includes:

  • administrative services;
  • accounting services;
  • legal services;
  • backroom processing services;
  • payroll services;
  • talent management services;
  • agency services;
  • insolvency related services; or
  • management services

Labuan Auditing: Requirements and Process Overview

A statutory audit is an independent examination of a company's financial statements that is conducted in accordance with the law. The purpose of a statutory audit is to provide assurance that the financial statements of a company are accurate, complete and comply with the applicable financial reporting framework. Our audit is performed in accordance with approved standards on auditing in Malaysia and International Standards on Auditing.

During a statutory audit, an auditor will review and assess the company's financial records, including its balance sheet, income statement, and cash flow statement, to ensure that they are accurate, complete, and comply with accounting standards and other regulations. The auditor will also assess the internal controls of the company to ensure that they are adequate to prevent fraud and errors.

Statutory audits are mandatory for most companies, and the financial statements must be audited by a qualified and independent auditor in order to be filed with the regulatory authorities. In most countries, including Labuan Federal Terriroty, the statutory audit must be conducted by approved auditors registered with LFSA.

The objectives of our audit are to obtain reasonable assurance about whether the financial statements of the Company as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with approved standards on auditing in Malaysia and International Standards on Auditing will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Labuan Auditing Process

Approved Labuan Auditors for Labuan Company Auditing: Meet Deadlines

Why Choose Us?

Choosing the right auditing firm can be a critical decision for any business, and there are several reasons why CWC & ENG PLT may be the best choice for your auditing needs in Labuan. We are approved auditors licensed by LFSA - Click Here

  • Experience and expertise: Our team of chartered accountants and other qualified professionals have years of experience in the field of auditing, and are well-versed in the latest accounting standards and regulations. 
  • Tailored services: We understand that every business is unique, and we offer customized auditing services to meet the specific needs of each client. 
  • Competitive pricing: We offer competitive pricing for our services and we are transparent about our fees, so you can budget and plan accordingly.
  • Proven track record: We have a proven track record of delivering high-quality auditing services to a wide range of clients.
  • Strong communication and client service: We believe in building strong relationships with our clients, and we make it a priority to keep lines of communication open throughout the audit process. We understand that the auditing process can be disruptive to business operations, and we work closely with our clients to minimize disruptions and ensure a smooth and efficient process.
  • Use of technology: We make use of the latest technology and software for our audit process, which allows us to perform audits more efficiently and accurately, and provide our clients with real-time access to their financial data.
  • Continual professional development: We are committed to ongoing professional development for our team members, which ensures that we are always up-to-date on the latest auditing standards and best practices.

In summary, by choosing us for auditing services, you can benefit from our experience and expertise, tailored services, independence and objectivity, proven track record, strong communication and client service, competitive pricing, continual professional development and use of technology.

Contact Us

ENG GUO MIAO
ENG GUO MIAO

Partner CA (M), FCCA

Email: eng@cwc-co.com.my

SAM KUAN YING TUNG

Partner CA (M), CPA

Email: sam.kuan@cwc-co.com.my

Frequently Asked Questions

1. What is the purpose of a Labuan audit?

The purpose of audit is to provide assurance that the financial statements of a company are accurate, complete and comply with the applicable financial reporting framework.

2. Who is required to conduct a Labuan audit?

All Labuan licensed companies and other labuan companies are required to appoint an approved auditor and file audited financial statements with the Labuan FSA on an annual basis.

3. How often is a Labuan audit required to be conducted?

All Labuan companies are required to file audited financial statements with the Labuan FSA on an annual basis.

4. What are the financial reporting requirements for Labuan companies?

The financial statements must be prepared in accordance with the relevant accounting standards and regulations. The applicable financial reporting framework in Malaysia are namely, Malaysian Financial Reporting Standards (MFRS) or Malaysian Private Entity Reporting Standards (MPERS).

5. What are the common areas of focus during a Labuan audit?

The auditor will review and assess the company's financial records, including its balance sheet, income statement, and cash flow statement, to ensure that they are accurate, complete, and comply with accounting standards and other regulations. The auditor will also assess the internal controls of the company to ensure that they are adequate to prevent fraud and errors.

6. What are the best practices for preparing for a Labuan audit?

Companies should maintain accurate and complete financial records, have internal controls in place, and stay informed about the relevant auditing and financial reporting requirements.
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