All about Labuan IBFC

 

What is Labuan IBFC?

Labuan International Business and Financial Centre or Labuan IBFC in short, refers to a special purpose economic zone established by the Malaysian government off coast of East Malaysia. It is designated as a financial centre and a free trade zone by the Malaysian authorities and marketed its unique position for investment opportunities in Asia and beyond.

Labuan IBFC advocates a wide variety of business and investment structures to boast and promote cross border transactions and wealth management. Its unique qualities make itself an option for global companies and businesses that are planning for expansion and looking to penetrate Asean’s markets.

Labuan IBFC is established with the aim to become the solution that provides clients with confidentiality yet compliant to international best standards and practices.

 

Where is Labuan IBFC?

It is strategically located off the coast of East Malaysia (also known as Borneo coast), on an island named Labuan, in the heart of Asia Pacific. Its location conveniently shares the same time zone as many large Asian cities and financial hubs such as Singapore, Hong Kong and major cities in China like Beijing, Shanghai and Shenzhen just to name a few. Such a strategic location allows it to become the connectivity hub for Asia’s economic and financial needs and beyond.

 

When was Labuan IBFC established?

Labuan IBFC is not something new or established recently. It was established in 1996 and since 2008, it has undergone rebranding and repositioning exercise to showcase and reflect its international status

 

What is Labuan FSA?

Labuan Financial Services Authority or Labuan FSA is the statutory body governing and accountable for the development and administration of Labuan IBFC.

Its function includes licensing, managing, monitoring policies as well as establishing new policies for new financial services and companies in the Labuan International Business and Financial Centre.

 

Why Choose Labuan Offshore for Financial Services and Wealth Management?

  1. Well-regulated jurisdiction by the Labuan FSA
    • The jurisdiction adheres to the international standards, practices and globally-recognized regulatory structures, while constantly improving the business environment, especially to facilitate cross-border trade and investment as well as wealth management,
    • This includes regulations on anti-money laundering, exchange of information and governing requirements established by the Organization of Economic Co-operation and Development (OECD)
  2. Easy Tax Structure
    • Labuan IBFC has a basic and easy to comprehend tax system
    • Labuan company formation can be formed to two different entities, trading or non-trading. Trading companies are subjected to a corporate tax of 3% or RM20,000. On the other hand, the corporate tax rate for non-trading companies, commonly investment holding entities, is 0%.

For more detailed information about this, see our page on Labuan tax 

  1. Modern Legislation and Regulations
    1. Labuan IBFC is governed by an extensive framework for a wide range of legal entities such as companies restricted by shares, Labuan foundations, Labuan trust company, Labuan protected cell business and more.
    2. The following are some of the principal legislation
      • Labuan Business Activity Tax Act 1990
      • Labuan Foundations Act 2010
      • Labuan Islamic Financial Services and Securities Act 2010
      • Labuan Limited Partnerships and Limited Liability Partnerships Act 2010
      • Labuan Trusts Act 1996
      • Labuan Financial Services and Securities Act 2010
      • Labuan Financial Services Authority Act 1996
      • Labuan Companies Act 1990