Labuan – Money Broker – Forex 2018-12-03T15:28:12+00:00

Labuan International
Business and Financial
Centre (IBFC)

Labuan IBFC is Malaysia’s very own integrated financial centre, providing a wide range of corporate, trust and company secretarial services.

It was made a Federal Territory directly under the administration of the Federal Government of Malaysia in 1984. The development of Labuan as an international financial centre only began in October 1990. The statutory body responsible for the development of Labuan IBFC is the Labuan Offshore Financial Services Authority (LOFSA).

Beginning January 2008, Labuan IOFC has been repositioned as Asia’s most connected, convenient and cost-efficient International Business and Financial Centre, with a specific focus on business incorporations.

Effective from 11 February 2010, a new set of legislations had been published to bring a series of new products and enhancing the present legislations structure, so as to ensure Labuan IBFC remains its competitiveness amongst the international financial industry around the region.

Subsequent to the new legislations, LOFSA has changed its name to the Labuan Financial Services Authority (commonly known as the “Labuan FSA”).

Become a Money Broker and Enable your Clients Access to Your Very Own Produtcs
Labuan Regulation
Increasingly Popular
Among Binary Options
And FX Brokers
The Labuan Firex Money Broker License

What is Money Broking?

Money broking business is defined as the business of arranging transactions between buyers and sellers in the money markets with brokers acting as an intermediary in consideration of brokerage fees paid or to be paid, but does not include the buying or selling of foreign currencies by the broker as a principal in such markets.

Who Qualifies?

Applicant should meet the following minimum criteria:

  1. A licensed domestic money broker;
  2. A Labuan company incorporated under the Labuan Companies Act 1990 (with money broking expertise); or
  3. Any licensed institutions under the Banking and Financial Institutions Act 1989 with prior approval from Bank Negara Malaysia (Central Bank of Malaysia);
  4. Has a good track record of financial performance, at least in the three years preceding the application; and
  5. Committed to setting up a functional operation in Labuan.

Main Requirements

  1. The applicant company must have a paid up capital of RM300,000 (unimpaired by losses) or its equivalent in any foreign currency. The company must inform Labuan FSA of any changes in its shareholding structure and/or any erosion of paid up capital.
  2. The company to pay an annual fee of RM5,000 to Labuan FSA on or before every 15th day of January.

Operational Requirements

  1. Physical presence: Licensed Labuan money broker must maintain a registered office in Labuan. All dealings must be done through this registered office in Labuan;
  2. Approved activities: Labuan money broker can only transact business in foreign currency and not deal in ringgit except for the purpose of defraying administrative and statutory expenses;
  3. Restriction of business: Labuan money broker is prohibited from dealing with residents other than authorised dealers as specified under section 4 of the Exchange Control Act 1953;
  4. Auditor: Labuan money broker is required to appoint an auditor; and
  5. Information: Labuan money broker must notify Labuan FSA of any amendments or alteration to any information in its constituent documents.

A Labuan Company involved in money broking is deemed a Labuan Trading Company under Section 2 of the Labuan Business Activity Tax Act, hence the company has a yearly election of either paying a flat tax rate of MYR20,000 per annum, or 3 percent of audited net profit.

Why Labuan Forex License

Investment Activities – 0%
Trading Activities – 3% or Maximum Ringgit Malaysia 20,000
Audit is not compulsory (for certain activities)
0% indirect tax (such as Sales Tax, Service Tax, GST, VAT and Custom Duty)
0% Personal Income Tax for Non-Malaysian Director
0% Stamp Duty – Labuan is a free tax port
50% Exemption on Gross Employment Income for Nor Non-Malaysian Managers
No further tax on dividend remitted back to home countries.
Tax Residency Certificate available for Company and Individual Shareholder.
No Exchange Control Regulations – Free Flow of Funds. Stop Tax heavens Abuse Act does not apply in Labuan.
Investment Protection Agreement (IGA) with more than 50 Countries. Protect your investment in the event that it is being nationalized.
Private and Confidential. Shareholders, Directors, shareholders and companies’ information are not available for search. Nominees and beneficiaries are protected by Acts
Double Tax Treaties (DTA) with more than 70 Countries. Original copy available upon request.
0% Withholding Tax: Dividend, Royalty, Lease Rental, Interest, Technical or Management Fee.
Allowed and able to stay and work in Malaysia

Full fledge and full services banking system:

– Onshore and Offshore Banking
– Can open bank account in other parts of Malaysia, Singapore, Hong Kong, USA etc.
– Multiple Currencies Accounts with interest bearing i.e. Ringgit Malaysia, SGD, AUD, GBP, RMB, YEN, EURO, USD, Swiss Franc, Norwegian Crone, Hong Kong Dollar, Canadian Dollar, NZ Dollar, AED etc.
– Fixed Deposit/Certificate of Deposit/Time Deposit (FD/CD/TD), Current Account.
– Anonymous/Numbered Credit Card, ATM, Debit Card under Company bank account
– Buy, deposit and withdraw Gold Bullion and other gold products
– High security Internet Banking System
– L/C and other trade facilities
– Not required to be present in Labuan, Malaysia to open bank account