Labuan Securities Dealer License

Securities dealing 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

The regulations provide for the licensing of securities licensees with the following scope of business:

  • Provide investment advice or administration services in respect of securities for the purpose of investment; or
  • Deal in securities; or
  • Provide other action as may be specified by Labuan FSA.

In addition, Islamic securities licensees shall also comply with the following requirements:

  • Carry on business in compliance with Shariah principles; and
  • Appoint qualified person(s) to its internal Shariah Advisory Board and notify Labuan FSA in writing of the appointment.

 

Legal Requirements

Requirements

Description

General

  • Corporate  vehicle permitted

Labuan Company

  • License application fee

USD 1,500

  • Annual license fee

USD 1,500

  • Local physical office required

Yes

Share capital or equivalent

  • Minimum paid-up capital

None

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

  • Company secretary

Yes

  • Auditor

Yes

  • Legal adviser

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