We understand that most of Fintech companies from another jurisdiction is struggling to open bank account. The good news that Labuan is a whitelist jurisdiction governed by common law and fully compliant with OECD (Organization for Economic Co-operation and Development) and FATCA (Foreign Account Tax Compliance Act). Therefore, Labuan entities are recognized by most of the bank in Asia and has proven record of bank account opening for Labuan fintech licenses holder.

Labuan jurisdiction welcome anyone who is interested to set up a 100% foreign owned Cryptocurrency Exchange, ICO, STO, Payment System (e-Wallet), Money broking (FOREX) and Digital Bank which can operate with tax as low as 3% on net audited profit. For international businesses with Asian connections looking for a low tax jurisdiction with good infrastructure facilities, Labuan would be the wisest destination to kickstart your company.

- 100% foreign ownership, Malaysian local partner not required
- 3% corporate tax on net audited profit
- NO tax on dividends to shareholders
- NO Capital Gain Tax and Inheritance Tax
- NO foreign exchange controls
- NO Withholding Tax on Interest, Management Fee, Royalty Fee and Technical Fee
- Easily create affordable substance for your business continuity and expansion
- Labuan has full range of Legislations and Acts regulated by Labuan FSA under common law practice
- Ability to access to more than 70 Malaysia Tax Treaty partners
- 2-year multiple entry working visa (renewable) to stay in Malaysia – Optional
- Set up a tax resident entity

Investment Activities – 0%
Trading Activities – 3%
Audit is not compulsory (for certain activities)
0% indirect tax (such as Sales Tax, Service Tax, GST, VAT and Custom Duty)
0% Personal Income Tax for Non-Malaysian Director
0% Stamp Duty – Labuan is a free tax port
50% Exemption on Gross Employment Income for Nor Non-Malaysian Managers
No further tax on dividend remitted back to home countries.
Tax Residency Certificate available for Company and Individual Shareholder.
No Exchange Control Regulations – Free Flow of Funds. Stop Tax heavens Abuse Act does not apply in Labuan.
Investment Protection Agreement (IGA) with more than 50 Countries. Protect your investment in the event that it is being nationalized.
Private and Confidential. Shareholders, Directors, shareholders and companies’ information are not available for search. Nominees and beneficiaries are protected by Acts
Double Tax Treaties (DTA) with more than 70 Countries. Original copy available upon request.
0% Withholding Tax: Dividend, Royalty, Lease Rental, Interest, Technical or Management Fee.
Allowed and able to stay and work in Malaysia
Not required to be present in Labuan, Malaysia to open bank account

Money broking business is defined as the business of arranging transactions between buyers and sellers in the money markets with brokers acting as an intermediary in consideration of brokerage fees paid or to be paid but does not include the buying or selling of foreign currencies by the broker as a principal in such markets.

Applicant should meet the following minimum criteria:
a) A licensed domestic money broker;
b) A Labuan company incorporated under the Labuan Companies Act 1990 (with money broking expertise); or
c) Any licensed institutions under the Banking and Financial Institutions Act 1989 with prior approval from Bank Negara Malaysia (Central Bank of Malaysia);
d) Has a good track record of financial performance, at least in the three years preceding the application; and
e) Committed to setting up a functional operation in Labuan.

a) The applicant company must have a paid-up capital of RM500,000 (unimpaired by losses) or its equivalent in any foreign currency. The company must inform Labuan FSA of any changes in its shareholding structure and/or any erosion of paid up capital.
b) The company to pay an annual fee of RM5,000 to Labuan FSA on or before every 15th day of January.

a) Physical presence: Licensed Labuan money broker must maintain a registered office in Labuan. All dealings must be done through this registered office in Labuan;
b) Approved activities: Labuan money broker can only transact business in foreign currency and not deal in ringgit except for the purpose of defraying administrative and statutory expenses;
c) Restriction of business: Labuan money broker is prohibited from dealing with residents other than authorised dealers as specified under section 4 of the Exchange Control Act 1953;
d) Auditor: Labuan money broker is required to appoint an auditor; and
e) Information: Labuan money broker must notify Labuan FSA of any amendments or alteration to any information in its constituent documents.

A Labuan Company involved in money broking is deemed a Labuan Trading Company under Section 2 of the Labuan Business Activity Tax Act, hence the company has a yearly 3 percent of audited net profit.

Applicant is required to submit the prescribed application form for approval to the Labuan Financial Services Authority (Labuan FSA)

The submission should include but not restricted to the following:

(a) Undertaking letter from the head office / parent company to undertake any liability arising from the operations of its branch or subsidiary in Labuan;
(b) The controller or director or CEO and the directors of the board of the applicant company must be fit and proper persons. Prior written approval of Labuan FSA must be obtained for the appointment;
(c) Signed declaration by directors and senior staff of the applicant on confidentiality and secrecy;
(d) The nature of business of the applicant;
(e) A business plan detailing the operations and strategies of the applicant with regard to its Labuan entity;
(f) Audited financial statements of the applicant for the last two years, if applicable; and
(g) Any other information that is relevant to the application.

Atrium Legal Lab, together with our local Lawyers, has been offering legal services related to acquiring a Vanuatu Forex and is today able to assist clients with every step all over the process.

Additionally, we offer free and non-binding consultations for Forex brokers and potential Forex brokers in order to help them understand if they fulfil the requirements set by the Labuan Financial Services Authority (Labuan FSA) for a license.

Our experienced staff offer regulation related services in many other popular jurisdictions as well and can therefore advise brokers who have not decided on the most suitable jurisdiction yet on what the most beneficial jurisdiction is.

We offer solutions to clients by combining the traditional legal fabric with new technologies.

If you would like more information as to how to become a licensed Brokerage Dealer in Labuan, we welcome you to get in touch with our Business Development Managers.