Labuan Financial Services / Leasing Business
Leasing Business
Labuan leasing business mainly consists of firms which supply plant and machineries, ships, aircrafts or other large and specialised equipment to support the oil and gas as well as aviation industries.
In details, “Leasing business” is defined as the business of letting or sub-letting property on hire for the purpose of the use of such property by the hirer regardless whether the letting is with or without an option to purchase the property, including charters of ships (bare-boat basis). The assets leased under Labuan leasing business are expected to be big ticket items of high value or specialised assets.
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Eligibility & Annual Fees
- Who is eligible to apply?
- A Labuan company incorporated under the Labuan Companies Act 1990 carrying out leasing business.
- Annual Fees/Type of Fees:
- Annual license fee of USD20,000
- Each subsequent approved lease transaction of USD6,000
What are the requirements to operate?
- Have sufficient and positive capital or working funds which commensurates with the Labuan leasing business at all times.
- Directors and officers must be fit and proper person.
- Establish an adequate set of internal policies and controls for its operations, compliances, corporate governance and risk management.
- Ensure that all its leased assets are adequately insured.
- Maintain adequate and proper records and books of accounts in Labuan.
- Maintain bank account(s) under its name preferably in Labuan IBFC and/or Malaysia.
- The lease agreement shall be stamped and endorsed by the Collector of Stamp Duties, at the Stamp Duty Office of Inland Revenue Board of Malaysia, Labuan branch
- To fulfilled substance requirment (see substance requirement).
Reporting Requirements
Individual (shareholder/director)
- Appoint an approved external auditor to undertake an audit.
- Submit its audited financial statements to Labuan FSA within six (6) months after the close of each financial year.
- Provide statistics and information as may be required by Labuan FSA.
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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.