How to start a private foundation in Labuan

Before you can establish a Labuan Foundation, you (the founder) need to define the purpose of your private foundation and set out the guidelines (for the grants)
- The purpose of the foundation is key to determine its tax-exempt status.
Deciding whether to structure your foundation either as a charitable trust or as a non-profit corporation.
- As a general rule of thumb, charitable trust may be easier to form and operate however, a non-profit corporation provides trustees with more legal protection.
- While non-profit corporations may face stricter operating requirements, it does limits personal liability and offers more flexibility in how funds may be used.
Before the registration of a Labuan Foundation, the founder shall appoint a registered Labuan trust company to be the secretary of the proposed Labuan foundation.
- Indah Trust is a licensed Labuan trust company (LMT0065) that can be appointed as your Labuan company secretary
Below are the relevant forms to be submitted to Registrar of Company to register your foundation
- Labuan Foundation Act 2010
  - Form 1 – Application for Registration of a Labuan Foundation
  - Form 2 – Declaration by a Labuan Trust company as secretary
- Labuan Islamic Financial Services and Securities Act 2010 (if you wish to set up an Islamic Foundation in Labuan)
  - Form 8 – Application for Registration of a Labuan Islamic Foundation
  - Form 9 – Declaration by a Labuan Trust company as secretary
Registration of the foundation must be made by the appointed secretary of the foundation by submitting the following completed documents as required under Section 14(1) of Labuan Foundation Act
- A statement on the particulars of the charter
- A list of names and addresses of the officers
- A statutory declaration of compliance by the appointed secretary of the proposed foundation.