Labuan Financial Services / Credit Token Business
Credit Token Business
A credit token business is defined as any business where a token, being a cheque, card, voucher, stamp, booklet, coupon, form or other document or thing is given or issued to a person (referred to as “customer”) by the person carrying on the business (referred to as “issuer”), whereby such issuer undertakes:
- on the production of the token, whether or not some other action is also required, the issuer will supply cash, goods or services on credit; or
- where, on the production of the token to a third party, whether or not any other action is also required, the third-party supplies cash, goods or services, the issuer will pay the third party for them, whether or not deducting any discount or commission, in return for payment to be made thereafter to the issuer by the customer.
And for the purpose of this definition, the use of a token to operate a machine provided by the issuer or by a third party shall be regarded as the production of the token to the person providing the machine.
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Economic Substance Requirement (ESR)
- To have an operational office in Labuan.
- To employ minimum of two (2) full time employees in Labuan, one must be in managerial position.
- To incurred annual operating expenses of at least RM 100,000 in Labuan (equivalent in any foreign currency).
Entry Requirements
Applicant should meet the following minimum eligible criteria:
- A Labuan Company or Foreign Labuan Company under the Labuan Companies Act 1990, or
- It is a Malaysian Bank
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FAQ
One share in any denomination in foreign currency except Malaysia Ringgit
Approximately 7-14 business days upon complete collection of the required documents
The director and the shareholder must be at least one person and can be the same person. It
can be fully owned by a foreigner.
A resident secretary is required.
• Trading company – please see attachment “LFSA – Code 20” for allowed activities under trading company.
• Non-trading company/investment holding – income mainly from dividend or interest.
*Kindly take note that the tax for general trading or import/export services is ranging from 15% – 24% under Malaysia Income Tax Act 1967.
• Trading company companies are taxed under Malaysia Income Tax Act 1967, which the tax ranging from 15%-24% of its profit except for Labuan licensed company. (Audit required)
• Tax for Labuan licensed company and business nature under “Code 20” is 3% of its audited net profit with fulfilled its substance requirements. (Audit required)
• Investment holding companies are not subjected to tax (0% tax) with the submission of yearly management account and fulfilled substance requirement.
No.
• CTC of Passport
• CTC of Proof of address (such as the most recent utility bill, internet bill, insurance statement, etc)
*CTC – Certified True Copies: Certification of documents must be made by competent persons such as a notary public, solicitor, chartered secretary, or certified public accountant,
and made in accordance with the law in Malaysia or in the country where the certification was made.