Labuan Insurance Broker License

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.

2. 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).