Labuan Forex Money Broking License

Money broking business is defined as the business of arranging transactions between buyers and sellers in the money or foreign exchange markets with brokers acting as an intermediary for consideration of brokerage fees paid. It however does not include the buying or selling of foreign currencies by the broker as principal in such markets. Section 86 of the Labuan Financial Services and Securities Act 2010, governs money broking activities in Labuan IBFC.
As most of the jurisdictions have tightened up their requirements and regulations on money broking business, which among others include compliance oversight, capital requirements and rules of segregation of client funds as well as change of leverage limit in foreign exchange trading, Labuan Financial Services Authority (“Labuan FSA”) has decided to enhance its processing and assessing on new application for money broker license in Labuan.
Key Features of Labuan Money Broking / FX License

Labuan  Money Broking/FX	Corporate Details
Licensing Fees
License processing fee (one-off)	RM1,000 / USD300
Annual license fee	RM5,000 / USD1,500
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	Not later than 30 days from the anniversary date of incorporation of the Labuan company
Annual Government Fee	On or before the anniversary date of incorporation of the Labuan company
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

Labuan Money Broking / FX License Distinctive Benefits

• There is no restriction on form of meeting for shareholders and directors and no restriction for place of meeting.
• It is possible to open a variety of Banks in Malaysia for the company.
• No withholding tax imposed for dividend paid out, interest, royalties, management or technical fees and lease rental.
• TAT (turn-around-Time) to process an application is around 2 months.
• 3% tax on net audited results or a flat rate of Malaysian Ringgit (MYR) 20,000 (i.e. about $4,740 USD) to trading companies, low operational costs, liberal exchange controls.

Why US (Key Strengths)

1. We will advise you on the optimal legal structure for your requirements, size, expectations and circumstances. We have extensive knowledge of a wide range of legal structures in all major jurisdictions. (Securities, Banking, Insurance, Investment Management, Gaming and many more)
2. Valsen will assist to complete every form for each process in the best way we know how (Based on our many years’ experience with various regulators and service providers across the world)
3. We are very hands on in the post filing period checking with re regulator and service providers and updating you regularly. Any queries raised by the regulators and service providers during processing will be quickly synthesized by us and we shall craft the right responses to move the process forward fast.
4. We can provide you with fit and proper directors in case you need. We have a wide network of qualified and experienced lawyers, chartered accountants, chartered financial analysts, wealth managers, FX experts, Investment advisors etc. of international pedigree.
5. We have a full in-house compliance support for all compliance requirements with the regulator and service providers
6. Through our extensive network, we provide sign up services with major service providers including but not limited to; Liquidity providers, technology providers, custodians, prime brokers, legal advisors, auditors, payment gateway providers among others.