Labuan Securities Dealer License

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