The Mutual Fund activities in Labuan IBFC is mainly regulated under the Labuan Financial Services and Securities Act, 2010 (“LFSSA”) and Labuan Islamic Financial Services and Securities Act, 2010 (“LIFSSA”).
Key Features
A Labuan mutual fund can be set up using a variety of flexible structures such as partnership, company, protected cell company, foundation or a unit trust; from any recognised jurisdiction which is a member of the International Organisation of Securities Commission.
Private funds in Labuan are mutual funds:
- whose securities are owned or held by:
- not more than 50 investors where the first-time investment of each of such investors is not less than RM250,000 or such other sum as may be prescribed by Labuan FSA or the equivalent in any foreign currency; or
- any number of investors where the first-time investment of each of such investors is not less than RM500,000 or such other sum as may be prescribed by Labuan FSA or the equivalent in any foreign currency; or
- which is designated as a private fund under regulations made under the Labuan Financial Services and Securities Act 2010.
A private fund can carry on its affairs by giving notice in writing of its scope and nature of business to Labuan FSA. The notification shall be accompanied with an information memorandum or such other offering document and should be lodged through a Labuan licensed entity. The information memorandum or such other offering document will be deemed as a prospectus and a lodgement fee of RM2,000 (USD 600) is applicable.
Legal Requirements
|
Requirements |
Description |
|
General |
|
|
Partnership, Company, Protected Cell Company, Foundation or a Unit Trust |
|
· License application fee |
USD 600 |
|
· Annual license fee |
USD 600 |
|
No |
|
Share capital or equivalent |
|
|
· Minimum subscription |
RM250,000 (USD 75,000) |
|
· Minimum investors |
50 |
|
Directors |
|
|
2 |
|
Yes |
|
No |
|
Shareholders |
|
|
2 |
|
Yes |
|
No |
|
Service Providers Required |
|
|
Yes |
|
Yes |
|
Yes |
|
Yes |
Tax Treatment
- Minimum 3% tax on profits or flat rate of RM 20,000
- No withholding tax on distribution to investors
- No stamp duty on share transfer
Duration to Set Up
About 3 months
Distinctive Benefits of Licence
- Fast licensing process
- Favourable tax environment
- Relatively friendly regulatory requirements
The Valsen Advantage
- End to end comprehensive service
- Speedy and efficient service
- Expert advice on structuring options
- Dedicated ongoing compliance support
- Extensive network pool of service providers