Labuan IBFC offers a comprehensive range of legal structures for international business, from asset protection vehicles to regulated financial services entities. The following overview maps the available structures and business activity categories from the perspective of a Founder or Settlor.
Asset Protection, Wealth Management and Succession Planning
Structures designed for protecting and managing personal and family wealth:
- Labuan Private Foundation
- Labuan Trust
- Labuan Private Trust Company
Investment Holding
Labuan Investment Holding Company
Non-Regulated Trading Activities
Trading activities that do not require a specific licence from Labuan FSA:
- Labuan Company
- Labuan Limited Partnership
- Labuan Limited Liability Partnership
Regulated Trading Activities
The following entity types require a licence from Labuan FSA to carry on their respective business activities:
- Labuan insurer, reinsurer, takaful operator or retakaful operator
- Labuan underwriting manager or underwriting takaful manager
- Labuan insurance manager or takaful manager
- Labuan insurance broker or takaful broker
- Labuan captive insurer or captive takaful insurer
- Labuan International Commodity Trading Company
- Labuan bank, investment bank, Islamic bank or Islamic investment bank
- Labuan trust company
- Labuan leasing company or Islamic leasing company
- Labuan credit token company or Islamic credit token company
- Labuan development finance company or Islamic development finance company
- Labuan building credit company
- Labuan factoring company or Islamic factoring company
- Labuan money broker or Islamic money broker company
- Labuan fund manager
- Labuan securities licensee or Islamic securities licensee
- Labuan fund administrator
- Labuan company management (Section 129 LFSSA)
- Labuan International Financial Exchange
- Self-regulatory organisation or Islamic self-regulation organisation
Non-Trading Activities
Investment holding activities other than pure equity holding activities.
Other Business Activities
Labuan entities may also carry on the following service-oriented business activities:
- Administrative services: Employee management, payroll management, property management, human resource management, financial planning, contract or subcontract management, facilities management or proposal management
- Accounting services: Recording, analysing, summarising or classifying financial, commercial and business transactions
- Legal services: Conveyancing, legal advisory, litigation or legal representation, and legal dispute resolution including alternative dispute resolution
- Backroom processing services: Settlements of receivables and payables, clearance, record maintenance, regulatory compliance or IT related services
- Payroll services: Processing, calculation, payment and deduction of remuneration, benefits, tax and statutory payments
- Talent management services: Provision of human resource services to attract, onboard, develop, motivate and retain employees
- Agency services: Provision of specific services on behalf of another group, business or person pursuant to an agency agreement
- Insolvency related services: Administering company liquidations or winding up or personal bankruptcy
- Management services: Organisation and coordination of activities of a business (other than Labuan company management under item 17 of the LFSSA)
Pure Equity Holding Activities
Exempted from FTE requirements under the Labuan Business Activity Tax (Exemption) Order 2020 [P.U (A) 177/2020], but must maintain minimum annual operating expenditure of RM 20,000 and comply with board meeting, registered office, secretary and record-keeping requirements in Labuan.
Key takeaway: Labuan IBFC provides a versatile legal framework with structures suitable for asset protection, investment holding, regulated financial services and a wide range of service-oriented business activities. The choice of structure depends on the intended business activity and regulatory requirements.
The information contained in this document is provided for information purposes only. It does not constitute legal advice and should not be relied upon as such. Readers may need to obtain professional advice on legal or tax issues before relying on it. Signature Trust Ltd tries to ensure that the content is accurate, adequate, or complete, but does not represent or warrant, express or implied, its accuracy, correctness, completeness or use of any of the information. Signature Trust Ltd expressly disclaims any liability to any person for loss or damage incurred as a result of reliance placed upon the information contained in this document. All rights reserved © 2022 Signature Trust Ltd.