Securities dealing 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
The regulations provide for the licensing of securities licensees with the following scope of business:
- Provide investment advice or administration services in respect of securities for the purpose of investment; or
- Deal in securities; or
- Provide other activity as may be specified by Labuan FSA.
In addition, Islamic securities licensees shall also comply with the following requirements:
- Carry on business in compliance with Shariah principles; and
- Appoint qualified person(s) to its internal Shariah Advisory Board and notify Labuan FSA in writing of the appointment.
Legal Requirements
|
Requirements |
Description |
|
General |
|
|
Labuan Company |
|
· License application fee |
USD 1,500 |
|
· Annual license fee |
USD 1,500 |
|
Yes |
|
Share capital or equivalent |
|
|
· Minimum paid up capital |
None |
|
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