A Labuan insurance broker is defined as a person who is licensed to arrange Labuan insurance business on behalf of prospective or existing policy owners and arrange Labuan reinsurance business on behalf of any insurer seeking reinsurance.

Additionally, a Labuan insurance broker may perform financial planning activities. A Labuan insurance broker is prohibited from dealing with residents (except for high-net worth individuals, reinsurance and others as defined by Labuan FSA from time to time) and broker for direct Malaysian risks. The applicant should have at least 3 years of relevant experience or audited annual accounts of the company.

Approved and restricted business activities 

  1. Approved activities:
  • Direct insurance business: The Labuan insurance broking company may broke direct insurance business (except direct Malaysian risks) with any insurance companies irrespective of whether they are licensed under LFSSA or not.
  • Life insurance: The Labuan insurance broking company may broke life insurance policy for high net worth Malaysian with life insurance companies licensed under LFSSA.
  • Reinsurance business: The Labuan insurance broking company may broke reinsurance of direct Malaysian risks transacted in Malaysian Ringgit.
  1. Restriction business activities:

The Labuan insurance broking company is prohibited from dealing with residents (except for high net- worth individuals, reinsurance and others as defined by Labuan FSA from time to time) and broke for direct Malaysian risks.

“High net worth individuals” in the above context are defined as persons who spend an equivalent of not less than RM20,000 in any foreign currency on single premium policy or an equivalent of not less than RM15,000 per person in any foreign currency on annual premium policy.

Key Features of Labuan Money Broker License

Labuan  Insurance Broker License

Corporate Details

Licensing Fees

License processing fee (one-off)

RM1,000 / USD300

Annual license fee

RM20,000 / USD6,000

Share Capital

  • Permitted Currencies

Any foreign currency except Ringgit Malaysia

  • Standard currency

US$

  • Minimum issued capital

Equivalent of RM300,000 in any foreign currency

  • Authorized capital

N/A

  • Par / Nominal value

N/A

Directors

  • Minimum

Two (2)

  • Corporate directors

Not Allowed, only individual

  • Local directors requirements

Optional

  • Location of meeting

Anywhere

  • Minimum numbers of meeting

Per Articles of Association

  • Publicly accessible records

No

Shareholders

  • Minimum

One (1)

  • Bearer shares

No

  • Corporate shareholders

Allowed

  • Local shareholders requirements

No

  • Location of meeting

Anywhere

  • Minimum numbers of meeting

One (1) annually

  • Publicly accessible records

No

Company Secretary

  • Minimum

One (1)

  • Requirements

A resident secretary who must be a Trust Officer of a trust company

Registered Office

  • Requirements

Principal office of a trust company in Labuan

Accounts

  • Records

Kept in Labuan

  • Preparation of accounts

Yes

  • Audit requirements and filing

Required for licensed companies

  • Publicly accessible records

No

Annual Requirements

  • Annual Return

The company is to submit to Labuan FSA within six (6) months after the close of each financial year, four (4) copies of its audited annual balance sheet and profit and loss account.

  • Annual Government Fee

Subsequent annual license fee is payable on or before 15 January of each calendar year

  • Tax Filing

Annual tax return needs to be filed with the Malaysian Director General of Inland Revenue by 31 March of that year of assessment. Normally, an extension of time for filing is allowed by the Inland Revenue.

Taxation

  • Money broking activities

RM20,000/- OR 3% of net audited profits, upon election annually

  • Others

No withholding tax, no capital gain tax, no stamp duty on offshore instruments

 

BUSINESS ETHICS

The Labuan insurance broking company is to undertake the following:

  • It must conduct its business with due diligence and sound insurance principles, maintain adequate and proper records and books of accounts and indicate clearly its names and license number on its letterhead, stationery and other documents;
  • It must obtain approval of Labuan FSA for any change of business plan; and
  • It must make known to its clients the names and domiciles of insurers whose insurance products the applicant company is “selling” or intends to “sell”. 

Our one-stop license application service level for Labuan Insurance Broker License include as follows: 

  • Consultation of your eligibility and procedures based on your profile.
  • Profiling, due diligence and guidance documentation preparation.
  • Preparation of Business Plan, Financial Forecast and Operation Manuals.
  • Submission and supervision of applicant process approval.
  • Act as your liaison and contact point with Labuan FSA for all correspondence and arrange interview (if any).