Labuan has a solid reputation as an offshore financial centre, offering a wide range of financial services to both domestic and foreign clientele. To attract offshore enterprises, such as investment banks and financial institutions, it provides favourable tax advantages, business-friendly rules, and secrecy provisions.
Labuan enables firms with an Investment Banking licence to engage in a variety of investment banking operations. Corporate finance advisory, underwriting, securities trading, debt and equity capital markets, mergers and acquisitions (M&A), project finance, structured finance, and financial research are examples of these services. Depending on the extent of approval and legal constraints, the specific services permitted may vary.
Labuan is an offshore financial centre in Southeast Asia, located off the coast of the state of Sabah in East Malaysia. Labuan, in particular, is an island in the South China Sea, about 10 kilometres off the northwest coast of Borneo. Geographically, it is closer to Brunei, which is located to the north of Labuan.
The population of Labuan is 86,908, according to official population statistics and publicly available information sites.
Malay is the official language of Labuan. Malay is Malaysia’s national language, commonly known as Bahasa Malaysia, and is widely spoken and understood throughout the country, including Labuan. In Labuan, English is frequently used and understood, particularly in business and commercial situations. Many Labuan people are bilingual, speaking both Malay and English. This language diversity reflects Malaysia’s cosmopolitan society as well as the region’s historical influence from British colonisation.
A Labuan company is one that was formed under the 1990 Act, whereas a foreign Labuan company is one that was formed under Part VIII of the 1990 Act, has a place of business in Labuan, and is not registered under the Companies Act 2016.
|Investment Banking License
|Timeframe for Approval:
|3 to 4 months
|Labuan Financial Services Authority (Labuan FSA)
|Minimum of two directors (can be only natural persons)
|Minimum of one shareholder (can be legal entities or natural persons, no nationality restrictions)
|Local Registered Office:
|Corporate Tax Rate:
|3% of audited net profits for trading activity and zero percent for non-trading activity
|Minimum Paid-up Capital:
|No minimum capital requirement
|0% Tax on Offshore Profits
The steps that follow will be taken in order to receive a Labuan Fund Management Licence.
Provide the following papers in order to receive a Fund Management Licence:
If the shareholder is a corporation, the following information must be provided: