The Mutual Fund activities in Labuan IBFC is mainly regulated under the Labuan Financial Services and Securities Act, 2010 (“LFSSA”) and Labuan Islamic Financial Services and Securities Act, 2010 (“LIFSSA”).

Key Features

A Labuan mutual fund can be set up using a variety of flexible structures such as partnership, company, protected cell company, foundation or a unit trust; from any recognised jurisdiction which is a member of the International Organisation of Securities Commission.

Public funds in Labuan are mutual funds whose securities are offered for subscription to any members of the general public. The annual fee payable is RM2,000 (USD600).

Legal Requirements

Requirements

Description

General

  • Corporate  vehicle permitted

Partnership, Company, Protected Cell Company, Foundation or a Unit Trust

  • License application fee

USD 600

  • Annual license fee

USD 600

  • Local physical office required

No

Share capital or equivalent

  • Minimum subscription

RM250,000 (USD 75,000)

  • Minimum investors

50

Directors

  • Minimum number

2

  • Corporate directorship allowed

Yes

  • Local director required

No

Shareholders

  • Minimum number

2

  • Corporate shareholder allowed

Yes

  • Local shareholder required

No

Service Providers Required

  • Custodian

Yes

  • Fund manager/Investment manager

Yes

  • Fund administrator

Yes

  • Auditors

Yes

Tax Treatment

  • Minimum 3% tax on profits or flat rate of RM 20,000
  • No withholding tax on distribution to investors
  • No stamp duty on share transfer

Duration to Set Up

About 3 months

Distinctive Benefits of Licence

  • Fast licensing process
  • Favourable tax environment
  • Relatively friendly regulatory requirements

The Valsen Advantage

  • End to end comprehensive service
  • Speedy and efficient service
  • Expert advice on structuring options
  • Dedicated ongoing compliance support
  • Extensive network pool of service providers