Labuan Financial Services / Management License
Management License
Company management business in Labuan IBFC provides treasury processing services and such other services, and to such persons as maybe permitted by Labuan FSA. Provisions of treasury processing activities include arranging intra-group financing, as well as regional payments and settlements and managerial services like intermediation functions and back-end shared services.
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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
- NO goods and services tax (GST) / sales and service tax (SST) / value added tax (VAT)
- Double Tax Agreements between Malaysia and over 70 countries
- 100% exemption for director’s fees received by non-citizen directors of Labuan companies
Permitted Activities
Provide treasury processing services for its group of related companies outside
Malaysia.
- Arranging intra-group financing/ factoring
- Managing cash & liquidity positions
- Providing in-house investment/ finance advisory services
- Back-room and middle office services
- Act as authorized representatives for support services
- Intermediation functions
- Any other services as may be permitted by Labuan FSA
Economic Substance Requirement (ESR)
Individual (shareholder/director)
- To have an operational office in Labuan
- To employ minimum two (2) full time employees in Labuan, one must be in managerial position
- To incurred annual operating expenses of at least RM100,000 in Labuan (equivalent in any foreign currency)
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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.
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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.