Labuan Financial Services / Fund Management License
Fund Management License
A fund management company or fund manager is a person who, for valuable consideration provides management services alone or with investment advice or administrative services in respect of securities for the purposes of investment, including dealing in securities, or such other activity as may be specified by Labuan FSA.
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Key Advantages
- NO withholding tax on payments of dividend or interest made to non-Resident.
- NO stamp duty on all instruments relating to offshore business activities including share transfer
- NO import duty/ sales tax
- NO foreign exchange controls
- NO capital gain tax / inheritance tax
- Double Tax Agreements between Malaysia and over 70 countries
- 100% exemption for director’s fees received by non-citizen directors of Labuan companies
Tax Regime in Labuan
Labuan Business Activity Tax Act 1990
Labuan Trading Company
Labuan trading company are taxed under Labuan Business Activity Tax Act 1990 which is 3% of its audited net profit with fulfilled substance requirements.
Labuan Non-Trading Company
Labuan Non-Trading Company is also an investment holding company. A Labuan investment holding company is divided to two category which is pure and non-pure equity holding.
Labuan Non-Trading Companies are not subjected to tax (0% tax) with the submission of yearly management account and fulfilled substance requirement.
Document required for company incorporation
Individual (shareholder/director)
- Passport (foreigner) / NRIC (Malaysian)
- Proof of address (such as the most recent utility bill, which does not exceed 3 months)
For corporate’s shareholder/director
- Company registration certificate
- Memorandum and Articles of Association
- Latest annual return
Download Our Fact Sheet
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Why Choose BBS?
We understand the challenges encountered by entrepreneurs who are operating in a highly competitive and ever-changing environment. With more than 25 years of combined experience, we provide comprehensive business structure advisory and related services to assist entrepreneurs in navigating through challenges.
25 Years of Professional Experience
Over 300 License Applications
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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.