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.
Public funds in Labuan are mutual funds whose securities are offered for subscription to any members of the general public. The annual fee payable is RM2,000 (USD600).
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