Fund management 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 fund manager provides management services which may include investment advice or administrative services in respect of securities for the purposes of investment, including dealing in securities. For a Labuan fund manager undertaking Islamic fund management activities, its operations shall also comply with Shariah principles.
An applicant intending to carry on business as a Labuan fund manager in Labuan IBFC shall meet the following eligibility criteria:
- An individual who holds a relevant degree or professional qualification to carry on fund management activities. Labuan FSA may also consider an applicant who is at least a diploma holder with three years’ relevant experience in the capital market or direct experience in fund management activities;
- An approved fund manager or any provider of such services from a country or jurisdiction who is a member of the International Organisation of Securities Commission (IOSCO); or
- A person who does not fulfil items 1 and 2 may also be considered, provided that the fund management activities are run and managed by suitably qualified and experienced individuals.
- Maintain a paid-up capital unimpaired by losses of at least RM300,000 (USD 70,000) or its equivalent in any foreign currency throughout its operations. Where the Labuan fund manager has assets under management (AUM) of more than RM150 million, it must maintain additional capital equivalent to 0.2% of the AUM in excess of RM150 million.
Legal Requirements
|
Requirements |
Description |
|
General |
|
|
Labuan Company |
|
· License application fee |
USD 1,500 |
|
· Annual license fee |
USD 1,500 |
|
No |
|
Share capital or equivalent |
|
|
· Minimum paid up capital |
USD 70,000 |
|
Directors |
|
|
2 |
|
Yes |
|
No |
|
Shareholders |
|
|
2 |
|
Yes |
|
No |
|
Service Providers Required |
|
|
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