Located in Malaysia, and a name that literally means ‘port’, this is a great jurisdiction to consider for investment in. The island (all six of them that make up Labuan), is small, only 35 square miles in total area. Another benefit is that the population speaks English and Malay, but English is important if you are looking to move yourself or your business there. The only offshore financial centre was created in October 1990, the Labuan International Business and Financial Center (IBFC). The Midshore Jurisdiction is where the business hub is and where you will find the attractive offerings of investment structures and cross-border transactions with an internationally recognised legal basis. Take a look at some of the offerings.
Different Areas of Investment & Business in Labuan
There are multiple possibilities when putting your money into this area. Investors can be in the banking, insurance, leasing, factoring (acquiring debts to any person or industry), money brokering, commodity trading, Malaysia International Ship Registry, capital markets, and wealth management. You can also get in through protected cell companies and partnerships. Some additional ways are through trust companies and ancillary services and client charters.
Lebuan Application Process
The application process differs depending on which sector you are going into. For example, the banking sector involves certain requirements such as being a bank or financial institution, has a sound track record, has a good credit rating, is supervised by a competent regulatory authority, and conforms to accepted standards of international banking practices.
For the application you also need a letter of awareness, a letter of guarantee, business plans, certified true copy f the memorandum and articles of association, certified true copy of the resolutions of the board or minutes, copy of audits for the previous three years, the applicants corporate profile, declaration of management, and any other relevant information.
Additional requirements are to maintain a physical presence in Labuan, every director or officer will not be the subject of any negative reports, comply with Labuan Financial Services and Securities Act 2010, Comply with the prudential and reporting requirements, meet predetermined criteria. Fees annually are $30,000, a marketing office fee of $2,500, and a co located office fee of $3,500.
Again, this is just for banking, there are plenty of other sectors that can be reviewed and the information for each application will be there.
Some of the Benefits
There are benefits that are different for the different application and business types in Labuan. There is a comprehensive legal system, there is government stability both politically and economically, and it is cost efficient and easy policies to follow. Yearly you will have to report financial data. There is a straightforward tax system in there as well. They are a globally recognised comprehensive regulatory framework. If you are looking to get into the Asian market this is the perfect place to begin doing business considering its location in the heart of the Asian Pacific. They will help you meet the best standards of international businesses.