Labuan IBFC Business Guide2

Contents

FOREWORD 3

ABOUT LABUAN 7

ABOUT LABUAN IBFC 11Labuan Financial Services Authority 1 1Labuan IBFC Incorporated Sdn Bhd 1 1Labuan IBFC’s Legislative Framework 1 1Islamic Finance 12Abstract Labuan; An Alternative 13

LABUAN IBFC’S TAX SYSTEM 17Tax Legislation 17Chargeable Persons 17Labuan Entities 17Labuan Business Activity 18Resident for the Purposes of LBATA 19Tax Rates 19Tax Payment Date 20Basis Period under LBATA 20Labuan Trust or Labuan Foundation Holding Malaysian Property 20 Irrevocable Election to Be Taxed Under ITA 20Tax Incentives 20Stamp Duty Exemption 2 1Malaysia’s Double Tax Agreements 22Advance Tax Ruling 22Confidentiality Clauses 22

LABUAN COMPANIES 25Setting up a Marketing Office in Kuala Lumpur and Johor Bahru 28Co-Located Labuan Holding Companies 30

LABUAN INTERNATIONAL 35COMMODITY TRADING COMPANY

BANKING 41Banks 4 1Investment Banks 42Co-Located Banks 45

INSURANCE AND TAKAFUL 51Insurance and Reinsurance Entities 5 1Captives 56Shariah Compliant Pure Captives 60Co-Located Insurance and Takaful Entities 62

PROTECTED CELL COMPANIES 67 PARTNERSHIPS 75Limited Partnerships 75Limited Liability Partnerships 76

WEALTH MANAGEMENT 81Foundations 8 1Trusts 84Private Trust Companies 85

FUND MANAGEMENT 89Fund Management Company 89Mutual Funds 92 • Private Funds 92 • Public Funds 93

LEASING 99

SHIPPING 103

FACTORING 107

MONEY BROKING 1 1 1

SERVICE PROVIDERS 115Trust Companies 1 15Managed Trust Companies 1 17Insurance and Underwriting Manager 1 18Company Management Company 120

CONTACT INFORMATION 123

This Business Guide aims to provide a practical reference point to the Labuan International Business and Financial Centre (IBFC) and includes specific details of its financial, legal and fiscal infrastructure, as well as the products and services available.

Labuan IBFC’s legislative framework is the pillar of the jurisdiction, and in order to fully understand the provisions contained herein, we have added references to Sections of the corresponding Acts which apply to the financial sector, financial instrument or class of business being discussed.

These Acts establish the range of products and services available in Labuan IBFC and enshrines the Labuan Financial Services Authority’s (FSA) mandate on governance and regulation of the jurisdiction.

Unlike most other jurisdictions, Labuan FSA is a one stop regulator dealing with all matters relating to the financial centre, while Malaysia’s Inland Revenue Board acts as Labuan IBFC’s tax authority.

In addition, reference should also be made to Labuan FSA’s Guidelines on business practices, conduct, minimum requirements and supervisory requirements, which are available at www.labuanibfc.my and please note that all information contained herein is subject to change and is current as of May 2012.

We sincerely hope this Guide will facilitate your business endeavours in Labuan IBFC. For further information, updates on business practices, guidelines and regulations, please visit www.labuanibfc.my or email us directly at [email protected].

Thank you.

Foreword

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RHINOCEROS HORNBILL (BUCEROS RHINOCEROS)Colourful and charismatic, the RhinocerosHornbill is among the largest hornbills, andhas long been revered by Sarawak’s indigenousDayak people as the “God of War”. Its long tailfeathers still adorn the Dayaks today.

About Labuan

Labuan derives its name from the Malay word for “an anchorage” and it is, fittingly Malaysia’s only deep-water port. Located on major shipping routes of the Asian region, this Malaysian Federal Territory actually comprises a cluster of seven small islands, of which Labuan is the largest.

The island boasts excellent physical infrastructure with a state-of-the-art telecommunications system including an Internet Gateway which provides it an efficient e-commerce platform.

As a Commonwealth country, the Malaysian and Labuan legal system is based on common law. All legal cases in Labuan are ultimately handled by the High Court of Sabah with first right of appeal resting with the Court of Appeal. Final appeals rest with the Federal Court of Malaysia.

Alternatively, Labuan IBFC also provides that all parties which contract within its legal parameters have recourse to arbitration or mediation should that be preferred. Both arbitration and mediation need not necessarily take place in Labuan or Malaysia, in fact, it may take place anywhere for as long as it is mutually agreed by the contracting parties.

Labuan is one of three duty free islands in Malaysia, thus all goods sold in Labuan are free of Malaysian customs duty. In 1990, Labuan was designated as Malaysia’s international financial centre and it is now home to Labuan IBFC. Labuan is also a hub for oil and gas, providing refining and support services to rigs and facilities throughout Borneo’s western seaboard.

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BASIC FACTS

Location : Off the West coast of North Borneo, 8 km from the state of Sabah, Malaysia

Land Area : 95 sq km The island is mainly flat and undulating. The highest point

is only 85 metres and over 70% of the island is still covered with vegetation.

Time Zone : 8 hours ahead of Greenwich Mean Time (+0800 GMT) and 16 hours ahead of U.S. Pacific Standard Time

Climate : Tropical with an average temperature of 30 degrees Celsius, free from hurricanes and typhoons.

Population : 100,000 (est. 2012)

Language : Malay is the national language, however English and Chinese dialects are widely spoken, with English being the language of business.

Currency : Malaysia Ringgit, indicated as MYR

Working Hours : Government Offices Monday to Thursday: 8.00am – 1.00pm / 2.00pm – 4.30pm

Friday: 8.00am – 12.00pm / 2.45pm – 4.30pm

Commercial Entities Monday to Friday: 9.00am – 1.00pm / 2.00pm – 5.30pm

Arrivals : There are direct flights to Labuan from Kuala Lumpur and Kota Kinabalu, the state capital of Sabah. Carriers that serve the route are Malaysia Airlines and AirAsia.

Passage from Singapore or Hong Kong will require a short stop over in Kuala Lumpur or Kota Kinabalu, Sabah. Fast Ferry Services are also available to Labuan from Brunei and Kota Kinabalu, Sabah.

Getting Around : Labuan’s excellent road network links Labuan Town with the entire island. A round-island tour takes approximately 1.5 hours by road.

Taxi fares are reasonable and generally range from MYR10.00 to MYR20.00 depending on the distance travelled. Visitors can also opt to hire self-drive or chauffeur-driven cars.

About Labuan

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BORNEO CLOUDED LEOPARD (NEOFELIS DIARDI)Identified in 2007 as a distinct leopard species, this secretive island cat is colloquially known as “the ghost of darkness” as its amazing coat, which has small and dark cloud markings, acts as an efficient camouflage in Borneo’s dense rainforest.

About Labuan IBFC

LABUAN FINANCIAL SERVICES AUTHORITYLabuan Financial Services Authority or Labuan FSA, is a statutory body set up under provisions of the Labuan Financial Services Authority Act 1996, as a one stop supervisory and regulatory body for Labuan International Business and Financial Centre (Labuan IBFC).

Labuan FSA’s key role is to license and regulate licensed entities operating within Labuan IBFC and to ensure all such companies remain in compliance with the internal and international best standards adopted by the jurisdiction. Labuan FSA, in close cooperation with Labuan IBFC Incorporated, is also responsible for product research and market development, aimed at further developing the jurisdiction via the introduction of new products and services.

LABUAN IBFC INCORPORATED SDN BHDLabuan IBFC Incorporated Sdn Bhd is the sole official Malaysian agency authorised to promote, market and develop the benefits of Labuan IBFC as the premier international business and financial centre in Asia Pacific. In addition, it acts as the first point of reference for all investors into Labuan IBFC.

LABUAN IBFC’S LEGISLATIVE FRAMEWORK Labuan IBFC’s legal framework comprises eight Acts which empower Labuan FSA and provide for the setting up of all Labuan entities participating in the international business and financial centre. In addition, Labuan’s tax provisions are entrenched in the Labuan Business Activity Tax Act 1990. Other Acts detail parameters and requirements for every single licensed entity, product and service offered in the jurisdiction.

The complete list of Acts which govern business in Labuan IBFC is:

• Labuan Business Activity Tax Act 1990

• Labuan Companies Act 1990

• Labuan Trusts Act 1996

• Labuan Financial Services Authority Act 1996

• Labuan Financial Services and Securities Act 2010

• Labuan Islamic Financial Services and Securities Act 2010

• Labuan Foundations Act 2010

• Labuan Limited Partnerships and Limited Liability Partnerships Act 2010

For your reference, copies of the Acts are available for download at www.labuanibfc.my. In addition, Labuan FSA also issues Guidelines and Circulars to reinforce and bolster provisions within the Acts to ensure Labuan IBFC remains responsive to changes in the international financial landscape.

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ISLAMIC FINANCE Malaysia and Labuan IBFC have long been accepted as the world leader in Islamic finance. The first Labuan Sukuk was issued in 2001 and today, over USD5 billion flows through the island’s Islamic financial system and it is a pillar of the jurisdiction, giving Labuan a first mover advantage in this ever growing area of financial services.

The development of the Labuan Islamic Financial Services and Securities Act 2010 is testament to this fact and serves to further strengthen Labuan’s leading position in this area. As the world’s first omnibus legislation governing all Islamic business for an international financial centre, it has clarified, streamlined and consolidated all requirements for Islamic finance in Labuan IBFC.

Every aspect of Islamic Financial Services is covered in the Act including banking, takaful, retakaful, sukuk issuance, wealth and fund management. The Act has also enhanced the role of the Shariah Supervisory Council, a body already renowned for the quality of its Islamic scholars, to a level at which its rulings may be deemed admissible in Shariah Courts around the world.

With this encompassing and dedicated Act, Labuan IBFC is able to provide a greater degree of comfort and certainty in Islamic financial services, reinforcing our position as one of the world’s leading Islamic financial centre.

Labuan IBFC also aims to become the centre of product innovation by helping fuel the development and structuring of more complex, liquid and long-term Islamic products that will satisfy the broad needs of investors and issuers.

Owing to its supervision and regulation, Labuan IBFC will also play an active role in the broader acceptance of Islamic finance products and services in international markets. Promoting sound accounting procedures and standards will provide a significant boost to the levels of transparency, accountability and credibility of Shariah-compliant products, helping to integrate Islamic financial markets with global markets.

About Labuan IBFC

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ABSTRACT LABUAN; AN ALTERNATIVE As a progressive jurisdiction, Labuan IBFC appreciates that in order to compete effectively, the provision of financial services can no longer be tied to a dedicated physical locality.

The “birth” of abstract Labuan is personified by co-location, which allows certain Labuan entities a presence in Kuala Lumpur or any other location within Malaysia. This enables that Labuan entity the benefits of domiciling in Labuan IBFC whilst accessing Malaysia’s first class infrastructure, facilities, human capital and professional services.

Co-located entities will still generally be required to satisfy all record keeping and statutory compliance requirements in Labuan, whilst having an “onshore” Malaysian presence.

At the time of writing, Labuan Holding Companies, Labuan Banks, Labuan Investment Banks and Labuan Insurance entities (excluding Labuan insurance manager and Labuan underwriting manager) are all allowed to co-locate. For an updated list of approved entities, please visit www.labuanibfc.my.

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CORAL REEFBorneo’s eastern seacoast is an integral partof the Coral Triangle initiative led by the World Wildlife Fund. Aimed at preserving this millenniaold treasure, the area is dubbed the “Amazon ofthe Ocean” and is every diver’s dream destination!

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Labuan IBFC’s Tax System

TAX LEGISLATIONLabuan Business Activity Tax Act 1990 (LBATA) governs the imposition, assessment and collection of tax on a Labuan business activity carried on by a Labuan entity in, from or through Labuan.

CHARGEABLE PERSONSOnly Labuan entities carrying on a Labuan business activity are chargeable to tax under the LBATA. Labuan entities that carry on a non-Labuan business activity are subject to the provisions of the Malaysian Income Tax Act, 1967 (ITA).

LABUAN ENTITIES Labuan entities are the entities as set out in the Schedule of the LBATA. They are made up of:

• A Labuan company

• A Labuan foundation established and registered under the Labuan Foundations Act 2010

• A Labuan Islamic foundation established and registered under the Labuan Islamic Financial Services and Securities Act 2010

• A Labuan Islamic partnership as defined in the Labuan Islamic Financial Services and Securities Act 2010

• A Labuan limited partnership established and registered under the Labuan Limited Partnerships and Limited Liability Partnerships Act 2010

• A Labuan limited liability partnership established and registered under the Labuan Limited Partnerships and Limited Liability Partnerships Act 2010

• A Labuan Islamic trust as defined in the Labuan Islamic Financial Services and Securities Act 2010

• A Labuan trust as defined in the Labuan Trusts Act 1996

• A Malaysian Islamic bank licensee as defined in the Labuan Islamic Financial Services and Securities Act 2010

• A Malaysian bank licensee as defined in the Labuan Financial Services and Securities Act 2010

• Any Labuan financial institutions as defined in the Labuan Financial Services Authority Act 1996

• Any person declared by the Malaysian Minister of Finance to be a Labuan entity, pursuant to section 2B of the LBATA

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LABUAN BUSINESS ACTIVITYA Labuan business activity means:

• A Labuan trading or a Labuan non-trading activity

• Carried on by a Labuan entity

• In, from or through Labuan

• In a currency other than Malaysian currency

• With non-residents or with another Labuan entity

The following activities by a Labuan entity with residents or in Malaysian currency where permitted, under the Exchange Control regulations would also be regarded as a Labuan business activity:

• A Labuan entity carrying on a banking, insurance or financial business licensed under the Labuan Financial Services and Securities Act 2010 or Labuan Islamic Financial Services and Securities Act 2010, and such activity may be carried on with residents, and where permitted, may be carried on in the Malaysian currency

• A Labuan entity holding an investment in a domestic company and such holding may be with residents and in the Malaysian currency

• Shipping operations carried out by a Labuan entity in Labuan or outside Malaysia; and

• Licensed international commodity trading business carried out by a Labuan entity in Labuan or in Malaysia subject to the conditions imposed by LFSA

In addition to the above, the Minister of Finance may grant approval under section 2A of the LBATA, to designate the following activities as a Labuan business activity:

• Any other transactions in Malaysian currency or with residents

Labuan companies are allowed to set up marketing offices in Kuala Lumpur or Johor Bahru subject to the conditions imposed by LFSA. The Labuan company must comply with the guidelines issued by LFSA in order that it can continue to be regarded as carrying on a Labuan business activity and taxed under LBATA.

Labuan banks and Labuan insurance companies can also apply to LFSA to set up co-located offices in other parts of Malaysia to carry out its Labuan business activities. The Labuan banks and Labuan insurance companies must comply with the conditions and terms imposed by LFSA under the respective co-location guidelines in order to be taxed under LBATA.

A Labuan company may also apply to LFSA to set up a co-located office in Kuala Lumpur as its operational and management office under the rules for ‘Co-location of Labuan Holding Company’. The Labuan Holding company is however, required to make an irrevocable election to be taxed under the ITA instead of under LBATA.

Note: Further details on the marketing and co-location offices can be found in this Business Guide under the sections “Labuan companies”, “Banking” and “Insurance”.


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RESIDENT FOR THE PURPOSES OF LBATAResident for the purposes of LBATA means:

• In relation to a natural person, a citizen or a permanent resident of Malaysia; or

• In relation to any other person, a person who has established a place of business, and is operating, in Malaysia

and includes a person who is declared to be a resident pursuant to Subsection 43(2) of the Exchange Control Act 1953. For corporate tax residency in Malaysia, please refer to comments under Malaysia Double Taxation Agreements.

TAX RATESTax rates and filing requirements:

DESCRIPTION TAX RATE ANNUAL TAX FILING REQUIREMENT

A LABUAN ENTITY UNDERTAKING A LABUAN BUSINESS ACTIVITY THAT IS:

A Labuan Non-Trading Activity Not subject to tax File a statutory declaration in (means holding of investments the prescribed form to thein securities, stock, shares, loans, Director General of Inland deposits or any other properties Revenue by 31 March ofby a Labuan entity on its that year of assessment.own behalf)

A Labuan Trading Activity 3% of net profits as File a statutory declaration (Banking, insurance, trading, per audited accounts; and a return of its profitsmanagement, shipping or (audited accounts) for that yearoperations, licensing or any MYR20,000 upon of assessment in the prescribedother activity which is not a election annually forms to the Director GeneralLabuan non- trading activity) General of Inland Revenue by 31 March of that year of assessment.

Both Labuan Trading and Same tax treatment Same filing requirement Non-trading Activities as those undertaking as those undertaking a Labuan Trading Labuan Trading activity.Deemed to be a Labuan activity Trading Activity

A LABUAN ENTITY UNDERTAKING:

A Non-Labuan Tax under ITA Filing requirement as Business Activity corporate tax rate: provided under the ITA. 25% (YA 2011)

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If a Labuan entity which carries out Labuan trading activity does not have a basis period for a year of assessment, the Labuan entity will be charged to tax for that year of assessment of MYR20,000.

A rebate shall be granted to a Labuan entity on its LBATA tax charged for any zakat paid in the basis period for that year of assessment, which is evidenced by a receipt issued by a Labuan Islamic religious authority.

TAX PAYMENT DATEA Labuan entity shall pay its taxes for a year of assessment at the time of the filing of its statutory declaration for that year of assessment.

BASIS PERIOD UNDER LBATAThe basis period for a year of assessment is the accounting period or periods ending in the calendar year immediately preceding that year of assessment.

LABUAN TRUST OR LABUAN FOUNDATION HOLDING MALAYSIAN PROPERTYIf a Labuan Trust or a Labuan Foundation holds any Malaysian property, the income derived therefrom shall be subject to the ITA. Income derived from trust property that is not Malaysian property is subject to the LBATA.

IRREVOCABLE ELECTION TO BE TAXED UNDER THE ITAA Labuan entity can make an irrevocable election under Section 3A of LBATA for its profits to be taxed under the ITA by furnishing a prescribed form to the Director General of Inland Revenue within three months from the beginning of its basis period. The Labuan entity will be subject to the provisions of the ITA for its tax matters instead of the LBATA.

Guidelines on the election procedure and the compliance requirement have been issued by the Malaysian Inland Revenue Board (IRB) on 18 August 2008. A copy of the IRB’s guidelines can be viewed in the legislation section of our website at www.labuanibfc.my.

TAX INCENTIVES The following income is exempted from income tax in Malaysia:

• Dividends received by Labuan entities

• Dividends received from Labuan entities which are paid, credited or distributed out of income derived from a Labuan business activity or income exempt from tax

• Distributions received from Labuan trusts and foundations (including both Islamic) by the beneficiaries


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• Distributions of profits by Labuan partnerships (including Islamic partnerships)

• Interest received by residents*, non-residents* or another Labuan entity from a Labuan entity

• Royalties and fees for services, advices or assistance specified in Section 4A(i) and (ii) of the ITA, received by a non-resident or another Labuan entity from a Labuan entity

• Other gains or profits under Section 4(f) of ITA received by a non-resident from a Labuan entity

No Malaysian withholding tax is imposed:

• On payments to non-residents for interest, royalties, fees for services, advice or assistance, or other gains or profits under Section 4(f) of ITA by a Labuan entity

• On payments to non-residents for use of moveable properties by a Labuan licensed leasing company. (note: Dividends are not subject to withholding tax in Malaysia)

The following tax incentives are applicable up to year of assessment 2020:

• 100% tax exemption on director fees received by a non-citizen director of a Labuan entity

• 50% tax exemption on gross income received by a non-citizen individual from exercising an employment with a Labuan entity in a managerial capacity, in Labuan or at its marketing or co-located offices approved by LFSA

• 50% tax exemption on gross housing and Labuan Territory allowances received by a Malaysian citizen from exercising an employment in Labuan with a Labuan entity

• 65% tax exemption on income of any person providing qualifying professional services such as legal, accounting, financial and secretarial services in Labuan to a Labuan entity

* Other than interest accruing to a business carried on by a person licensed under the Malaysian Banking and Financial Institutions Act 1989, Islamic Banking Act 1983, Insurance Act 1996 or Takaful Act 1984.

STAMP DUTY EXEMPTIONStamp duty is exempted on all instruments executed by a Labuan entity in connection with a Labuan business activity, on its constituent documents and on transfer of shares in a Labuan company.

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MALAYSIA’S DOUBLE TAX AGREEMENTS Malaysia has signed more than 70 Malaysia Double Tax Agreements (DTAs) with various countries as at first quarter 2012. Labuan entities with tax residency in Malaysia can enjoy the benefits of the DTAs signed by Malaysia with its treaty partners unless it has been specifically excluded.

A company or a body of persons is resident in Malaysia if at any time during that basis year:a) it is carrying on a business, the management and control of its business are exercised in

Malaysia; andb) if it is not carrying on a business, the management and control of its affairs are exercised by

its directors or other controllers in Malaysia.

In practice, a Labuan company can apply for confirmation of its Malaysian tax residency status from the IRB by providing evidence that at any time during the basis year, its effective management and control is in Malaysia.

The IRB has issued a Public Ruling No. 5 of 2011 dated 16 May 2011, which provides explanation on the determination of the residence status. A copy of the public ruling can be viewed in the public ruling section of the IRB website at www.hasil.gov.my.

ADVANCE TAX RULINGAny person can apply to the Director General of Inland Revenue for an advance ruling on the application of LBATA on an arrangement or transaction which involves a Labuan entity. However, ruling will only be granted on actual proposed transactions and not on completed transactions.

CONFIDENTIALITY CLAUSEThe return of profits, statutory declaration or information made or received for the purposes of LBATA shall be treated as confidential and shall not be communicated or disclosed to any person except for the purpose of LBATA.

Any official, whether during his employment or thereafter, who contravenes the confidentiality clause shall be guilty of an offence and upon conviction, be liable to a fine of not exceeding one million ringgit or to imprisonment for a term not exceeding two years or to both.


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WHITE BELLIED SEA EAGLE (HALIAEETUS LEUCOGASTER)These raptors are generally found along the coast, on wooded rocky shores and in the mangroves. They call out shrilly when there is change of tide and it’s safe for shellfish to come out, hence its Malay name “Burung Hamba Siput” which means ‘slave to the shellfish’ bird.

Labuan Companies

SHARE CAPITAL

Permitted Currencies Any currency except Ringgit Malaysia

Minimum authorised capital One share in any denomination in foreign currency

Minimum share issue One share in any denomination except Ringgit Malaysia

TYPE OF COMPANY

Labuan Trading or Companies can either be limited by shares or guarantee Non Trading Company incorporated under the Labuan Companies Act 1990 or foreign Labuan company registered under the Labuan Companies Act 1990

Timescale for setting up new Within one day subject to complete submission of entities/companies necessary documents. Pre-Incorporated companies are also available

Incorporation fees MYR1150 to MYR5,200 depending on authorised capital

Annual fees Regulatory Fees MYR1500 for Labuan companies MYR5300 for Foreign Labuan companies

DIRECTORS

Minimum number One (either individual or corporate entity)

Residency requirements Resident director is optional

Corporate directors AllowedMeetings/frequency Directors meeting required annually although not necessarily in Labuan

SHAREHOLDERS

Disclosure There are certain confidentiality provisions in place

Bearer shares Not allowed

Minimum number One (either individual or corporate entity)

Public share registry There are no public records of Labuan companies

Meetings/frequency Yes, at the discretion of the companies

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ACCOUNTS

Annual return Filed annually not later than 30 days from the date of the incorporation of the Labuan company

Audit requirements Optional, except for Labuan companies opting to pay 3% tax per annum on audited net profits and licensed companies such as banks, insurance entities and trust companies

OTHER

Registered office The principal office of a Labuan trust company is deemed as the registered office of a Labuan company

Domicile issues Change in domicile is permitted

Company naming restrictions The name may contain any word or abbreviation thereof in the national language of any country that denotes a company limited by shares or guarantee. Naming approval is required from the Authority and a name may be reserved for a period of up to three months

Please note that the Labuan Companies Act 1990 also provides for the registration of foreign Labuan companies i.e. a Labuan registered company which is a branch of a foreign incorporated company.

A Labuan company:

• May be a company limited by shares or by guarantee

• May participate in business activities and enjoy attractive tax benefits provided under the Labuan Business Activity Tax Act 1990

• May carry out any business that is lawful in Malaysia either in, from or through Labuan

• Would need to be licensed if it intends to undertake specific businesses including banking, insurance/insurance-related, public fund management, leasing, factoring and company management

Some additional characteristics of a Labuan company:

• It must have a resident secretary

• It may issue shares of different classes and with different rights

• Amalgamation by merging two or more companies into one is allowed

• No par value shares and treasury shares are allowed

Labuan Companies

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In addition, Labuan companies can own controlling stakes in a Malaysian domestic company. Transactions conducted by a Labuan Company must be in currencies other than Malaysian Ringgit (MYR), except as permitted by the relevant legislation and authorities.

Registration RequirementsThe Labuan Companies Act 1990 requires the intended Labuan company to employ the services of a licensed Labuan trust company to act as its incorporation agent. Among the services offered by a Labuan trust company are:

• The provision of a registered office, resident secretary and director

• The performance of secretarial duties of the Labuan company including lodgement of any documents required under the Labuan Companies Act 1990

• The general management of all Labuan companies and licensed entities

Registration Procedures The general process for registering a Labuan company is as follows:

• The applicant must appoint a Labuan trust company for the registration, the trust company will then conduct its due diligence on the applicant

• The applicant must reserve its company name which will be reserved for it for three months. Labuan FSA has the discretion to reject the name

• The name may contain any word or abbreviation thereof in the national language of any country that denotes a company limited by shares or guarantee

• The name of a Labuan company may be written in any language, alphabet or characters. However, an English version of the name must be provided

• When registering the company, the application must be accompanied by the Memorandum and Articles of Association, a statutory declaration by an officer of the appointed trust company and consent in writing of the person(s) to be appointed as director(s) of the company, together with the relevant fees

• For activities that require licensing, prior approval must be obtained to undertake such activities

• All submission of forms or other documents under the Labuan Companies Act 1990 is done on-line and registration is generally completed within 24 hours

Please note that the procedures detailed above apply for both Labuan companies and foreign Labuan companies.

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Elements of Registration Cost Reservation of company name MYR50Memorandum & Articles of Association MYR100Statutory declaration MYR50Consent to act as director MYR50 per director

Registration Fee PAID UP CAPITAL FEE

MYR50,000 and below MYR1,000MYR50,001 and MYR999,999 MYR2,000MYR 1 million and above MYR5,000Registration of foreign company MYR6,000

The provisions above apply to all Labuan companies.

SETTING UP A MARKETING OFFICE IN KUALA LUMPUR AND JOHOR BAHRUThe role of a Marketing Office is limited to facilitate meetings with clients and to establish contacts with potential clients. There should be no maintenance of books and records (including trading activities) through, from or in the Marketing Office.

All Labuan companies, including those licensed under the laws relating to financial services in Labuan IBFC may apply to set-up a Marketing Office in Kuala Lumpur and/or in Johor Bahru.

Labuan companies that have an existing Kuala Lumpur Marketing Office may also apply to establish another Marketing Office in Johor Bahru. With the exception of insurance brokers and captives, all Labuan companies with such a Marketing Office are required to maintain a Management Office in Labuan.

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Operational Requirements

Location and address

• The Marketing Office must have an address

• The entry door of the said office should only lead to the office and is independent of any other entities

• The premise should not be used for personal use or accommodation

StaffThe number of staff in each of the Marketing Office should not exceed four other entities.

SignboardThe name of the Labuan company must be printed and affixed in a conspicuous position, in Romanised letters, easily legible on the premise and must be in compliance with the local authority’s laws and regulations. Specifically, the signboard must contain the following information:

• Company name and registration number

• Licence number, if any

• Address, telephone and facsimile numbers

Reporting Requirements The company is required to submit a half-yearly report comprising the organisational chart and business activities for the past six months, before the 15 of the following month.

Annual Fee An annual fee of MYR5,000 will be imposed for each Marketing Office in Kuala Lumpur and Johor Bahru.

Application RequirementsAll Labuan companies must submit through their respective trust companies, the following minimum information towards the application:

• Purpose of the Marketing Office

• Business plan of setting up the Marketing Office

• Organisational Chart, and

• Biodata of the managerial level at the Marketing Office

All applications should be directed to the Director General, Labuan FSA and Labuan FSA reserves the right to revoke the approval due to non-compliance with Labuan FSA’s Guidelines and other regulatory requirements.

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CO-LOCATED LABUAN HOLDING COMPANIESThe following provides a guide for the establishment of a co-located Labuan holding company which is able to further develop its business by leveraging on the infrastructure, human capital, professional advisors and service providers, as well as recreational and residential facilities that are available in Kuala Lumpur.

A Labuan holding company refers to a Labuan company incorporated under the Labuan Companies Act 1990, which:

• Carries on business with non-residents of Malaysia and in non-Ringgit currencies except as permitted under the Labuan Companies Act 1990 and the Exchange Control Act 1953

• Subject to Labuan FSA’s approval, is allowed to carry on any one or a combination of the following business activities from its office in Kuala Lumpur: holding of investment in securities, stocks, shares, loans, deposits or immovable properties

• Provides management services including administrative, human resource, accounting and backroom support services to:

a) Related companies within Malaysia, or b) Related or non-related companies outside Malaysia

• Manages surplus funds and provides credit facilities to related companies within the group in and outside Malaysia

• Carries out trading or invoicing activities outside Malaysia

Note: “Related companies” has the meaning assigned to it in the Labuan Companies Act 1990.

The application for approval to set up an operational and management office should be submitted to Labuan FSA prior to the establishment of the office, and can be made by:

• A company incorporated under the Labuan Companies Act 1990, or

• Any person intending to incorporate a company under the Labuan Companies Act 1990

The applicant must have international and/or regional businesses.


Location and address of the officeA Labuan holding company is required to inform Labuan FSA of the address and contact numbers of its office in Kuala Lumpur prior to the commencement of its operations and any subsequent changes to this address. In addition, the office of the Labuan holding company in Kuala Lumpur must be:

• Separated from the office of any other entity/company; and

• Managed by its own personnel with independent books and records

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Name and SignboardThe name of a Labuan holding company must be easily legible in Romanised characters, printed on a signboard affixed at the entrance of the office. The signboard must contain the following information:

• The Labuan holding company’s incorporation number, and

• The words “Labuan Company”

In addition, the Labuan holding company must also comply with requirements of the relevant local authorities, whenever applicable, with regard to the signboard.

Directors and Principal Officer A Labuan holding company shall appoint a minimum of one (1) director of any nationality, however no corporate director is allowed. In addition, the Labuan holding company is required to notify Labuan FSA of any change to its Principal Officer.

Other Key Requirements for a Co-located Holding Company

• It must have sufficient paid-up capital commensurate, or in accordance, with its operations and activities

• It must make an irrevocable election to be taxed under the Income Tax Act 1967 pursuant to Section 3A of Labuan Business Activity Tax Act 1990. Hence, the Labuan holding company is required to:

a) Comply with the provisions of the Malaysian Income Tax Act 1967 b) Submit an annual audited accounts to Labuan FSA; and c) Conduct an Annual General Meeting in Malaysia

• A Labuan holding company must provide statistical information to Labuan FSA in a manner and frequency as may be determined by Labuan FSA

• Subject to relevant provision of the laws relating to disclosure of information, the Labuan holding company will provide Labuan FSA with any information relating to its business and operations whenever it is required

• It must comply with other requirements of the Labuan Companies Act 1990 and the relevant laws, whichever applicable, including obtaining appropriate work permit(s) from the Immigration Department of Malaysia for expatriates employed by the co-located Labuan holding company in Malaysia

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Revocation and Surrender

• Labuan FSA reserves the right to revoke the approval if Labuan FSA is satisfied, based on the information made available to it, that the Labuan holding company has not complied with any laws or requirements

• Notwithstanding the above, the Labuan holding company may surrender the approval under this Guideline by notifying Labuan FSA in writing not less than one (1) month from the date it intends to close the office

Annual FeeAn annual fee of MYR7,000 is payable once approval for the Labuan holding company is given by Labuan FSA. The subsequent annual fee is payable on or before 15 January of each year during which the approval is valid.

Application Requirements All applications for the setting up of a Labuan holding company should be directed to the Director General, Labuan FSA and should include, amongst others the following information:

• The proposed name of the Labuan holding company

• Nature of business of the applicant

• Business plan of the said company, including the purpose of co-locating the office

• Organisation chart of the proposed office in Kuala Lumpur including the estimated number of staff

• Information on director(s) and shareholder(s) of the applicant Company

• Biodata of the proposed Principal Officer who will be managing the office. “Principal Officer” means the principal executive officer of the company by whatever name it is referred to and whether or not he is a director and who is accustomed to act under the instructions of the applicant

Notwithstanding the above, Labuan FSA may request additional information for the purpose of processing the application.

Labuan Companies

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RAFFLESIA (RAFFLESIA ARNOLDII)Discovered by Sir Stamford Raffles whilst out horse riding, this parasite is noted for bearing the world’s largest and most smelly flower. In full bloom, the flower can grow to the size of a tyre! Its bud takes up to 10 months to develop and blossom, only to wither away after three days.

Labuan International Commodity Trading Company

Labuan International Commodity Trading Company (LITC) is designed to meet the needs of companies and financial institutions wishing to tap into international trading markets in commodities such as petroleum, petroleum-related products and other approved commodities, including minerals and carbon credits.

LITCs are licensed entities under the Labuan Financial Services and Securities Act 2010 and towards the establishment of LITCs the Labuan Financial Services Authority (Labuan FSA) has issued a Guideline detailing the requirements applicable to applicants who wish to set up an LITC. A Labuan company set up as an LITC can then take advantage of allowances under the Global Incentives for Trading (GIFT) programme.

For a copy of this Guideline please visit www.labuanfsa.gov.my or www.labuanibfc.my.

The GIFT programme is a set of incentives for traders of specified commodities, to use Malaysia as their international trading base and is a strategic collaboration between Labuan FSA and Malaysia Petroleum Resources Corporation.

The GIFT programme is offered to any LITC dealing and trading in the following type of commodities:

• Petroleum and petroleum-related products

• Minerals

• Carbon credits; and

• Any other commodities as may be approved by Labuan FSA, in any currency other than the Malaysian Ringgit

Trading under the GIFT programme is defined as the buying, selling and/or brokering of these specified commodities.

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The LITC can use the office of its Labuan trust company as its registered address and at the same time set up its operational office(s) anywhere in Malaysia. This operational office is encouraged to use Malaysia’s support functions such as: 1. Strategic management 2. Banking, finance and treasury management 3. Risk management 4. Market research and product portfolio development 5. Logistics management 6. Global procurement, or 7. Marketing and sales planning

LITCs which deal and trade the commodities listed above will be subject to a corporate tax rate of 3% of chargeable profits under the Labuan Business Activity Tax Act 1990 or at the rate of10% in the case where the LITC does not comply with the qualifying criteria set out below:

• Generate a minimum company turnover of USD100 million annually

• Business spending of at least MYR3 million annually to Malaysian entities

• Employ a minimum of three professional traders

Notwithstanding the qualifying criteria, for the initial 5-year period the LITC will be taxed at the corporate rate of 3%. Labuan FSA will review on compliance with the qualifying criteria to determine the corporate tax rate applicable thereafter.

In addition, there are other tax exemptions enjoyed by a LITC, which are as follows:

• 100% exemption on director fees paid to non-Malaysian director of the LITC

• 50% exemption on gross employment income of a non-Malaysian professional managerial staff including traders with the LITC

• Exemption on dividends received by or from the LITC

• Exemption on royalties received from the LITC

• Exemption on interest received by resident or non-resident from the LITC

• Stamp duty exemption on all instruments for Labuan business activities, including memorandum and articles of association of Labuan company as well as transfer of shares

Labuan International Commodity Trading Company

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In addition there are the following operational requirements:

• The LITC must have sufficient capital/working funds to commensurate or in accordance with its operations and activities

• Existing Labuan companies currently undertaking international commodity trading business are required to be licensed as an LITC by January 2013

• The LITC must indicate clearly on its letterhead, stationery and other documents including signage, its name and that it is licensed as a “Labuan International Commodity Trading Company” together with its licence number

• The LITC must ensure that the business is conducted with proper corporate governance, with a risk management framework in place

• The LITC is expected to comply with other requirements of relevant laws which are applicable to it

The licence to carry on LITC business is valid for a period of five years from the date of approval and may be renewed at the end of the period.

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BLUE EARED KINGFISHER (ALCEDO MENINTING)This lightning fast fisherman is blessed with vivid plumage. The males take wooing to epic proportions with copious offers of food, even going to the extent of constructing nests to win the female over.

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Banking

LIBFC offers a wholesale platform for banks and financial intermediaries looking to establish their operations and take advantage of the numerous associated opportunities in the region.

All Banking entities set up in Labuan IBFC are governed and regulated under the Labuan Financial Services and Securities Act 2010, Part VI, specifically provisions contained in Sections 87 to 100.

BANKS Labuan banks are in the business of providing credit facilities and receiving deposits, investment banking service, building credit business, credit token business, development finance business, leasing business or such other activities as approved by Labuan FSA.

Labuan banks are NOT allowed to accept deposits or provide withdrawals in cash.

Application RequirementsAn applicant should meet the following minimum criteria:

• Must be a bank or financial institution in another jurisdiction

• Possesses a sound track record

• Has been accorded a good credit rating by an acceptable rating agency

• Supervised by a competent regulatory authority in another jurisdiction

• Conforms and subscribes to generally accepted standards of international banking practices or the Bank of International Settlement, as the case may be

An applicant is required to submit the prescribed Form L and the submission should include, but is not restricted to, the following:

• The nature of business of the applicant

• The composition of its Board of Directors and senior management

• Audited financial statements for the last two years of the parent company

• A three-year business plan, which should provide a detailed outline of its operations and strategies with regard to its Labuan entity

• Any other information relevant to the application

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In addition, the minimum requirements for the issuance of a licence are:

• Letter of awareness from a competent regulatory authority that supervises the applicant in the originating jurisdiction

• Letter of guarantee or undertaking or both from the parent company

• Payment of an annual licence fee of MYR80,000

Operational RequirementsUpon issuance of the licence, the Labuan bank is required to:

• Comply with the statutory requirements under the Labuan Financial Services and Securities Act 2010

• Maintain a physical presence in Labuan

• Comply with the prudential and reporting requirements issued by Labuan FSA

• Carry on business in any currency other than the Malaysian currency, except as permitted by the relevant authorities

• Meet certain pre-determined criteria, should it prefer to co-locate

• Conduct Islamic banking activities, which will allow it to open operational offices anywhere in Malaysia, and subject to the prior approval from Labuan FSA be exempt from maintaining an operational office in Labuan

• Adhere to any other requirements issued by Labuan FSA from time to time

INVESTMENT BANKS Labuan investment banking is defined under the Labuan Financial Services and Securities Act 2010 is:

• The business of providing credit facilities

• The business of providing consultancy and advisory services relating to corporate and investment matters or making investments on behalf of any person, including dealing in securities, or making and managing investments on behalf of any person

• The business of undertaking foreign exchange transactions, interest rate swaps, dealings in derivative instruments or derivative financial instruments or any other similar risk management activities

• Labuan Islamic Investment banking activities

• Labuan financial business, or

• Other such business as Labuan FSA, with the approval of the Minister, may specify

Labuan investment banks are not allowed to accept deposits and may only carry on business in a currency other than the Malaysian Ringgit, except as permitted by the relevant authorities. Subject to provisions under the Labuan Financial Services and Securities Act 2010 and Exchange Control Act 1953, a licensed Labuan investment bank is allowed to deal with Malaysian residents.

Banking

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Application RequirementsA Labuan investment bank can be set up as a branch/subsidiary and registered or be incorporated under the Labuan Companies Act 1990. Applications to the Director General, Labuan FSA, may be accepted from:

• An investment bank or group engaging in investment banking activities licensed by the regulatory authority in the country of origin

• A licensed bank or an established financial institution or financial service provider supervised by a competent regulatory authority

• Any licensed institution under the Banking and Financial Institutions Act 1989 with prior approval of the Malaysian Central Bank

• Corporations with the necessary expertise and experience in the financial industry with at least three years’ good track record and regulated by an authority in their home country

An applicant’s submission must include, but is not limited to, the following:

• For applicants which are branches/subsidiaries, a letter of undertaking from the head office/parent company to assume any liability arising from the operations of its branch/subsidiary in Labuan

• A business plan for the first three years of operations

• Audited annual accounts for the three years immediately preceding the application, where applicable

• A letter of consent from the home regulatory authority, where applicable

• Details of the composition of its Board of Directors and senior management

• Prior written approval from Labuan FSA on the appointment of the person in control, Director or Chief Executive Officer of the applicant, whom must also be deemed fit and proper persons

• Proof of sound track record and/or the necessary experience and expertise in a similar undertaking

The applicant must pay an annual licence fee of MYR80,000 on/before 15 January of each year.

Capital RequirementsThe applicant must have a paid-up capital of MYR10 million (unimpaired by losses) or its equivalent in a foreign currency or if the applicant is a branch it must maintain net working funds equivalent to MYR10 million. In addition, Labuan FSA is to be informed of any changes in shareholding structure of capital and/or any erosion of paid up capital.

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Operational RequirementsThe Labuan investment bank must adhere to the following:

• The applicant must maintain a sufficiently staffed operational office in Labuan and all dealings must be conducted through this office unless otherwise permitted under the co-location guidelines

• Applicants conducting Islamic finance activities may open operational offices anywhere in Malaysia and, subject to the prior approval of Labuan FSA, it may be exempted from maintaining any operational offices in Labuan

• Applicants can only carry on business in any currency other than Malaysian Ringgit except as permitted by the relevant authorities

• Subject to the provisions under the Labuan Financial Services and Securities Act 2010 and Exchange Control Act 1953, licensed Labuan investment banks may deal with Malaysian residents. In dealing with residents and arranging syndicated financing schemes, the said investment bank must ensure that the syndication as far as possible should involve banking institutions based in Labuan before involving other financial institutions overseas

• Shall appoint an approved auditor

• Must obtain the approval of Labuan FSA on any changes or amendments to its constituent documents and indicate clearly its names and licence number on its letterhead, stationery and other documents

In addition, the Labuan investment bank:

• Must subscribe to safeguards and standards developed and issued by the relevant authority or organisation. These include implementing an effective management control system, capital adequacy and use of value as a risk model, as well as having proper reporting, disclosure and accounting procedures

• Which is a branch of a foreign bank, should subscribe to the prevailing rules and regulations of the home country which houses its head office

• Must conduct its business with due diligence and sound principles, maintain adequate and proper records and books of accounts

• Must obtain approval of Labuan FSA of any change in business plan

• Is to submit to Labuan FSA within six months after the close of each financial year, two copies of its audited annual balance sheet and profit and loss account

• To provide statistics and information required from time to time by Labuan FSA in relation to prudential information, general business conduct and volume of business in Labuan

Banking

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CO-LOCATED BANKS The following provides a guide for the establishment of a co-located Labuan bank, issued pursuant to Section 4A of the Labuan Financial Services Authority Act 1996 and provides the option for Labuan bank to establish an office or offices in parts of Malaysia other than its office in Labuan (hereinafter referred to as the “co-located office”).

A Labuan bank given approval to establish a co-located office must continue to have an office in Labuan with a suitable number of staff to perform the functions assigned to the Labuan office. The application for approval to set up the co-located office must be submitted to Labuan FSA prior to its establishment.

Qualifying Criteria The application can be made by any Labuan bank licensed under the Labuan Financial Services and Securities Act 2010. Each applicant has the choice between the two co-locating options below, subject to compliance with pre-determined criteria:

OPTIONS

OPTION 1The Labuan bank may carry out any operations at the co-located office, except for the following which will remain in Labuan:

• Booking centre

• Maintenance of records

OPTION 2The Labuan bank may only carry on specific operations as may be approved by Labuan FSA, apart from marketing activities.

All other operations are to be retained in Labuan.

ELIGIBILITY CRITERIA

The applicant bank must have:

• An average total asset for three (3) years preceding the application of not less than USD1 billion

• An average percentage of loan granted to non-residents to the total outstanding loan for three (3) years preceding the application, of not less than 50%

• An average percentage of deposit from non-residents to the total deposit for three (3) years preceding the application, of not less than 50%; and

• A minimum number of 10 staff

The applicant bank has been in operation in Labuan for not less than three (3) years at the time of the application.

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Banking

Labuan banks which do not wish to co-locate are instead allowed to apply or continue to have their marketing office under the guideline for Establishment of Marketing Office in Kuala Lumpur and Johor Bahru as previously described. However, once a co-located office is set up, the bank is no longer allowed to set up a separate marketing office.

Permitted Activities Labuan banks that co-locate under this guideline are allowed to conduct the following business activities at the co-located office:

• Banking business as permitted under the Labuan Financial Services and Securities Act 2010 or any other relevant legislation, and

• Any other banking businesses as may be permitted from time to time

Application Requirements All applications for the setting up of a co-located Labuan bank should be directed to the DirectorGeneral, Labuan FSA and should include, amongst others the following information:

• A business plan that illustrates the following:

a) Rationale or purpose of co-locating the office under this Guideline

b) Functions of the Labuan office and the co-located office respectively

c) Relocation plan of staff from Labuan to the co-located office (if any), and

d) Business strategy for the co-located office

• Organisation chart of the Labuan office and co-located office including the estimated number of staff after the co-location takes place Notwithstanding the above, Labuan FSA may request other information for the purpose of processing the application.


Address of the Co-located OfficeLabuan Banks are required to inform Labuan FSA of the address and contact numbers of the co-located office prior to the commencement of its operations and of any subsequent changes. In addition the co-located office must be:

• Separated from the office of another entity/company, and

• Managed by its own personnel with sufficient books and records, explaining their activities at the co-located office

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Name and SignboardThe name of the Labuan bank must be easily legible in Romanised characters, printed on a signboard affixed at the entrance of the co-located office. The signboard must contain the following information:

• The Labuan bank’s licence number, and

• The words “Labuan bank licensed under the Labuan Financial Services and Securities Act 2010”

In addition, the Labuan bank must comply with requirements of the relevant local authorities with regard to the signboard of the co-located office, wherever applicable.

Market Conduct and Consumer ProtectionA Labuan bank that co-locates is expected to comply with any guidelines and requirements on market conduct and consumer protection, issued by Labuan FSA from time to time.

Annual FeeAn annual fee of MYR7,000 is payable to Labuan FSA for each co-located office once the approval is given. The subsequent payment of annual fee is payable not later than 15 January of each year.

Revocation and Surrender Labuan FSA reserves the right to revoke its approval if it is satisfied, based on the information made available to it, that the Labuan bank has not complied with any laws or requirements in relation to the co-located office.

Notwithstanding, the Labuan bank may surrender the approval under this Guideline by notifying Labuan FSA in writing not less than one (1) month from the date it intends to close the co-located office.

Effective dateThis guideline came into effect on 19 January 2010 and remains effective and applicable unless amended or revoked otherwise.

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ORANG UTAN (PONGO PYGMAEUS)Nesting up to 60 feet up in Borneo’s rainforestcanopy, these omnivores build two nests daily,one for the quintessential afternoon nap and the other, of stronger construction, to turn in for the night.

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Insurance and Takaful

All insurance and reinsurance related entities set up in Labuan IBFC are regulated under the Labuan Financial Services and Securities Act 2010, Part VII, specifically provisions contained in Sections 102 to 107.

INSURANCE AND REINSURANCE ENTITIES The following details the types of licences which are issued by Labuan FSA to conduct insurance and insurance-related activities:

• Captive insurance

• Direct insurance – Life/General

• Reinsurance

• Takaful

• ReTakaful

• Insurance manager

• Underwriting manager

• Insurance broker (Including financial planning activities)

Application RequirementsAn applicant is required to submit the prescribed forms relevant to the type of licence being applied. In general, the submission should include, but is not restricted to the following:

• Business plan of the proposed company

• Authenticated copy of the proposed Memorandum of Association and Articles of Association of the applicant

• Certified extracts of the resolutions of the Board and the general meeting, if any, authorising the applicant to apply for a licence

• Copy of the applicant’s audited annual accounts for three preceding years

• The applicant must submit a banker’s certificate as evidence that working funds are maintained in the account of the applicant with a bank in Labuan

• Applicant’s corporate profile, which includes: a) The name, place and date of establishment of the applicant b) The names, addresses, qualifications and experience of the directors and officer

responsible for the overall management of the affairs of the applicant c) The name and address of each member who holds 10% or more of the voting shares of

the applicant

• Declaration by the applicant on the probity of its directors and officers responsible for the management of the Labuan insurance and insurance-related entity

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Operational RequirementsThe table below details operational requirements for each category of insurance licence holder.

TYPE OF MANAGEMENT MARKETING REMARKSLICENCE OFFICE OFFICE? IN LABUAN?

Insurer Optional √ Either –and Establish its management office Reinsurer in Labuan; or appoint a licensed underwriting

manager or insurance manager in Labuan.

The establishment of a marketing

office is subject to having a management office in Labuan.

Captive Optional √ Either – Establish its management office in Labuan; or appoint a licensed underwriting

manager in Labuan.

If the Captive intends to set up a marketing office, it is excluded from also having a management office in Labuan.


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TYPE OF MANAGEMENT MARKETING REMARKSLICENCE OFFICE OFFICE? IN LABUAN?

Insurance Optional √ Either –Broker Establish its management office in Labuan; or appoint a licensed insurance manager in Labuan.

If an Insurance Broker intends to set up a marketing office, it is excluded from also having a management office in Labuan.

Insurance Optional √ Either –Manager Establish its management office in Labuan; And or appoint a licensed underwriting

manager or insurance manager in Labuan.

Underwriting √ The establishment of a marketing Manager office is subject to having a management office in Labuan.

All Labuan insurance entities are required to carry on business in any currency other than the Malaysian Ringgit except as permitted by the relevant authorities and it must ensure that the controller, director and Chief Executive Officer are fit and proper persons.

Should the applicant conduct takaful and/or retakaful activities, it may open operational offices anywhere in Malaysia, and subject to the prior approval of Labuan FSA, it may be exempted from also maintaining any operational office in Labuan.

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TYPE OF LICENCE MINIMUM PAID-UP MINIMUM SOLVENCY CAPITAL/NET WORKING MARGIN FUNDS OR ITS EQUIVALENT IN ANY FOREIGN CURRENCY

Single Owner/Multiple MYR0.3 million MYR0.3 millionOwner Captive

Rent-A-Captive/ MYR0.5 million MYR0.5 million or 20% of net Cell Captive premium income of theor Similar Vehicle preceding year or 3% of the

actuarial valuation of liabilities for life insurance, whichever greater.

General MYR7.5 million MYR7.5 million or 20% of net premium income of the preceding year, whichever is greater.

Life MYR7.5 million MYR7.5 million or 3% of the latest actuarial valuation of liabilities, whichever is greater.

Reinsurance MYR10.0 million Similar to that of direct insurance business but the minimum requirement is MYR10.0 million instead of MYR7.5 million.

Underwriting Manager, MYR0.3 million Not applicableInsurance Manager and Broker

In addition, the applicant must submit a bankers certificate evidencing that its working funds are maintained in its account in a bank in Labuan. However, the applicant may apply to provide less than 100% of the working fund required, subject to the provision of adequate guarantee acceptable to Labuan FSA for the difference in amount required.


Capitalisation/Working Fund and Solvency RequirementsPlease refer to the table below, for capital requirements applicable to each category of insurance licence.

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Reporting Requirements

• Labuan insurers are required to submit within six months after the close of each financial year-end, 4 copies each of their audited annual balance sheet, profit and loss account, revenue account and in the case of life insurance business, an actuarial valuation report

• A foreign Labuan insurer established as a branch in Labuan is also required to submit the latest audited annual balance sheet of its parent company

• In the case of other Labuan insurance-related entities, they are only required to submit 4 copies each of their audited annual balance sheet and profit and loss account, and

• Provide statistics and information required in relation to prudential regulation and business operation to Labuan FSA from time to time

Annual FeeAll licensees are required to pay to Labuan FSA annual licence fees described below, on or before 15 January of each year:

TYPE OF LICENCE LICENCE

FEE

Captive MYR10,000 Master Rent-A-Captive MYR13,000 Subsidiary Rent-A-Captive MYR3,000General Insurer/Life Insurer/Reinsurer/Takaful/ReTakaful MYR30,000 Underwriting Manager MYR10,000 Insurance Manager MYR10,000Insurance Broker MYR10,000

Should a Protected Cell Company structure be utilised to house an insurance entity, the annual fee applicable irrespective of type of licence obtained, would instead be as follows:

Core MYR30,000Each cell MYR10,000

* For more information on Protected Cell Companies, please refer to Guidelines of the establishment of a Protected Cell Companies found in the next chapter.

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CAPTIVES Captive insurance business is defined as an insurance business whereby the insured is a related company or an associated corporation of a Labuan insurer, or where the insured is any other person or persons in respect of whom the Labuan insurer is authorised by Labuan FSA to provide insurance or reinsurance.

This broad definition is designed to include, but not necessarily limited to:

• Pure/Single Captives This category covers single parent company captives writing the risk of their owner or

affiliate companies only

• Group/Association Captives This category covers multi owned insurance companies writing only the risks of their owners

and/or affiliates, usually within a specific trade or activity or a captive formed or owned by members of a common industry or trade association to share risks of that industry among its members

• Master Rent-a-Captives This captive provides captive facilities and services to subsidiary rent-a-captive. Subsidiary

rent-a-captive is an entity with separate licences, assets and accounts but at the same time it uses the working capital of the master captive

• Cell Captives This category may include protected cell captive, where legislation protects each individual

cell or account from the liabilities of the other cells within the captive

• Multi Owner Captive This form of captive is owned by two or more unrelated persons or organisations,

writing the risks of its owner and/or affiliates and is designed to insure the risks of these different entities

A captive insurer may underwrite direct general and life insurance risks of a related company or an associated corporation and third party risks, provided it is approved by Labuan FSA. It may also obtain reinsurance cover from any insurance company, irrespective of whether it is licensed under the Labuan Financial Services and Securities Act 2010.

Under the Act, a captive insurer is allowed to deal with the reinsurance of Malaysian risks including the reinsurance of domestic insurance business transacted in Malaysian currency or any other reinsurance,for which approval has been obtained from Labuan FSA.


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Application RequirementsAn applicant is required to submit to the Director General of Labuan FSA, which should include, but is not restricted to the following information:

• An authenticated copy of the proposed Memorandum and Articles of Association of the applicant

• Approvals of authorities concerned, board resolutions and minutes of a general body meeting in respect of carrying on business as a Labuan captive insurer

• A business plan for the first three years of operations, which should include but is not limited to the following:

a) A description of the nature of risks that are to be written b) An explanation of the strategy for managing risks, particularly in relation to reinsurers c) Details of previous loss history, stating the source of the information and past actuarial

studies, if appropriate d) Confirmations that the financial projections which should be consistent with loss history

and actuarial studies e) The rationale for setting up the company in Labuan f) An outline of the exposure to be written and the reinsurance to be obtained g) A summary of the programme, including reinsurers and security ratings h) If applying for a cell of a Protected Cell Company and the cell is reliant on the core

for solvency, a solvency projection showing the allocation of core capital to all of the individual cells

i) A summary of the fronting arrangements, including fronting company, security rating and commission structures

j) A summary of how the loss reserves are to be calculated, and k) Details of the forms of business to be undertaken

• Audited annual accounts for the three years immediately preceding date of the application, if the business is licensed and authorised to conduct insurance business outside of Labuan

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Operational RequirementsThe applicant must:

• Be incorporated or registered as a Labuan company, a foreign Labuan company under the Labuan Companies Act 1990, a protected cell company or a special purpose vehicle set up to undertake captive insurance business

• Have a management office in Labuan or appoint a licensed underwriting manager

• Appoint at least a director and a resident secretary. The resident director (if appointed) and resident secretary must be trust officer(s) of a trust company in Labuan

• Ensure that its person in control/director/principal officer is a fit and proper person, whose appointment requires prior approval from Labuan FSA

• Establish a management team of fit and proper persons, with adequate knowledge and expertise to manage a captive or appoint a licensed underwriting manager

• Carry on business in any currency other than the Malaysian currency, except as permitted by the relevant authorities

• Have no adverse reports from reliable sources on the shareholders, directors and senior management of the applicant company

Capitalisation/Working Fund and Solvency RequirementsIn relation to a Labuan company which is:

• A single/multiple owner, Group and Association captive: a paid-up capital which is unimpaired by losses of at least MYR300,000, or its equivalent in any foreign currency, or

• Rent-a-captive, master rent-a-captive , cell captive or similar vehicle: a paid-up capital which is unimpaired by losses of at least MYR500,000, or its equivalent in any foreign currency

In relation to a foreign Labuan company or a branch of an existing insurer:

• A single/multiple owner, Group and Association captive: a surplus of assets over liabilities of at least MYR300,000, or its equivalent in any foreign currency, to be maintained in the books of its office in Labuan, or

• Rent-a-captive, master rent-a-captive, cell captive or similar vehicle: a surplus of assets over liabilities of at least MYR500,000, or its equivalent in any foreign currency, to be maintained in the books of its office in Labuan


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A captive insurer is required to maintain at all times a surplus of assets over liabilities, which is equivalent to or more than the amount of its working funds and specifically when the captive is involved in:

General Insurance and/or Reinsurance

• To maintain a surplus of assets over liabilities or 20% of the net premium income for the preceding year in respect of the general insurance business, whichever is the greater

Life Insurance and/or Reinsurance

• To maintain a surplus of assets over liabilities or 3% of the actuarial valuation of the liabilities for life insurance business as at the last valuation date in respect of the life insurance business, whichever is the greater


• Labuan captives are required to submit within six months after the close of each financial year-end, 4 copies each of its audited financial statements, as approved in accordance with its constituents documents

• The latest audited financial statements in respect of its entire operations both in and outside Labuan within 3 months after being filed with the home regulatory authorities (only applicable to branch)


Annual FeesAll licensees are required to pay to Labuan FSA annual licence fees described below, on or before 15 January of each year:

• Single/multiple owner, Group, Association MYR10,000 or Multiple owner captive

• Master rent-a-captive MYR13,000

• Subsidiary rent-a-captive MYR3,000

Should a Protected Cell Company structure be utilised to house a captive the annual fee applicable irrespective of type of licence obtained, would instead be as follows:

Core MYR30,000Each cell MYR10,000

* For more information on Protected Cell Companies, please refer to Guidelines of the establishment of Protected Cell Companies found in the next chapter.

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SHARIAH COMPLIANT PURE CAPTIVESA Labuan Shariah Pure Captive or a Single Parent Captive is a Labuan company that undertakes Shariah compliant captive activity operating under a Pure Captive structure where its entire activities, including the contract between the parent and the captive company as well as all its investment undertakings are all deemed Shariah compliant.

A Pure Captive is owned and controlled by one company that only reinsurers affiliated risks and usually insures the risk of non insurance of the owners subsidiary operations. There is no third party risks involved, and the main purpose of this structure is to provide risk transfer or financing for a corporation on a specific line of coverage.

Shariah compliance is achieved by ensuring that the types of risk transferred into the Labuan Shariah Captive should be related only to Shariah compliant business. Entities that are not categorised as investable equities by prevailing Islamic benchmark or indices may also transfer risk to a Labuan Shariah Compliant Captive provided that the risk being transferred relate to activities which are Shariah Compliant.

Guidance on the type of risk and investment activities that are Shariah compliant is to be determined by the captive’s Shariah adviser or any other recognised Shariah advisory bodies. In addition, the captive’s investment activities must be channeled to Shariah approved business and the distribution of dividends or profits must adhere to Shariah principles.

In a Shariah Compliant Captive structure, the parent company may choose to transfer risks to the Labuan Captive with or without a fee on an agency (wakalah) basis, however the following key operational requirements shall be in place:

• The Shariah Captive will be appointed as the agent of the parent company to manage the risk and the risk financing strategy in accordance with Shariah principles

• Investment activities of the appointed Shariah Captive must be approved by the appointed Shariah Advisor or Labuan FSA’s Shariah Supervisory Council

• All other operational requirements, applicable to conventional captives also apply to a Shariah compliant captive, except where such requirements contradict Shariah principles


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Qualifications and Conditions The following entities may apply to undertake Shariah Captive Activities:

• A Labuan Company or Protected Cell Company

• Special Purpose Vehicles, as well as any other category of persons approved by Labuan FSA

• The application directed to the Director General, Labuan FSA, must include the following: a) Certified extracts of Board Resolutions and minutes of meetings in respect of the

decision to set up a Shariah Compliant Captive b) The proposed Memorandum of Association stating that the operations of the captive is to

be Shariah compliant and detailing the setting up of the captive’s Shariah Advisory Board c) A business plan for the first 3 years of operations d) The applicant’s corporate profile, including the name, place and date of the establishment

of the applicant as well as details of the directors and officers responsible for the a management of the applicant

e) Shareholding structure of the applicant and a declaration by the applicant on the probity of its directors and officers responsible for the management of the Shariah Captive

f) Where applicable, audited annual accounts for the three years immediately preceding application if the business is a licensed insurance entity outside Labuan

A Shariah Captive may underwrite direct general and life insurance risks of their own group and may also obtain reinsurance/retakaful cover from any insurance company, irrespective of whether it is licensed under the Labuan Islamic Financial Services and Securities Act 2010.

In case there is a need to obtain conventional insurance coverage, either from a Labuan based insurance firm or otherwise, the Shariah Captive is first encouraged to obtain takaful coverage before considering the reinsurance/conventional option. For more details please refer to Labuan FSA’s Guideline on Takaful and Retakaful Business dated 15 June 2007, available at www.labuanibfc.my or www.labuanfsa.gov.my.

Other requirements pertaining to operational office requirements, annual fees, paid up capital and working capital remain the same as conventional captives, however the margin solvency requirements are as follows:

• The Shariah Captive is required to maintain at all times a surplus of assets over liabilities which is equivalent to or more than the amount in its working fund, or

• 20% of net contribution income for the preceding year in respect of the general insurance business or 3% of the actuarial valuation of the liabilities for family takaful business as at the last valuation date in respect of the family takaful business

In addition, the Labuan Shariah Captive is required to submit to Labuan FSA:

• Within six months after the close of each financial year, two copies of its audited annual balance sheet and profit and loss account as approved in accordance with its constituent documents, and

• Statistics and information required in relation to prudential regulation and business operations as requested by Labuan FSA from time to time

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CO-LOCATED INSURANCE AND TAKAFUL ENTITIES The following provides a Guide for the establishment of a co-located Labuan insurance and takaful licensee. The aim of co-locating a Labuan Insurance or Takaful entity is to facilitate its business by leveraging on the infrastructure, human capital, professional advisors and service providers, as well as recreational and residential facilities that are available in Kuala Lumpur.

The following is issued pursuant to Section 4A of the Labuan Financial Services Authority Act 1996 and provides the option to establish an office or offices, in any part of Malaysia for all Labuan insurance and takaful licensees.

Qualifications and Conditions All Labuan insurance and takaful licensees, licensed under the Labuan Financial Services and Securities Act 2010 and Labuan Islamic Financial Services and Securities Act 2010, are allowed to co-locate, except:

• Labuan Insurance manager

• Labuan Underwriting manager

• Labuan Takaful manager, and

• Labuan Takaful Underwriting manager

The Labuan insurance and takaful licensee approved to co-locate must appoint a Labuan insurance manager or Labuan takaful manager or Labuan underwriting manager or Labuan takaful underwriting manager or continue to have a management office in Labuan, whichever applicable.

Labuan insurance and takaful licensees that have a marketing office may apply to convert the existing marketing office into the co-located office. However, those with a co-located office are not allowed to also apply for a marketing office as prescribed under the Guidelines for Establishment of Marketing Office in Kuala Lumpur and Johor Bahru.

Permitted ActivitiesAll Labuan insurance and takaful licensees approved to co-locate shall only carry out Labuan insurance and takaful business including:

• Underwriting

• Risk management

• Claims adjustment, assessment and settlement

• Treasury, including investment functions

• Accounting

• Administration and Human Resources

• Sales and marketing


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All record keeping functions including accounting records and other records as specified under Labuan Financial Services and Securities Act 2010 and Labuan Islamic Financial Services and Securities Act 2010 and other statutory compliance requirements must remain in Labuan.

Application Requirements All applications for the setting up of a co-located insurance or takaful entity should be directed to the Director General, Labuan FSA and should include, amongst others, the following information:

• A business plan that illustrates the following: a) Rationale or purpose of co-locating the office under this Guideline b) Activities to be performed at Labuan office and at the intended co-located office

respectively, and c) Relocation plan of staff from Labuan to the co-located office (if any)

• Organisational chart of the management office in Labuan (if any) and co-located office, including the estimated number of staff after the co-location takes place

• Notwithstanding the above, Labuan FSA may request other information for the purpose of processing the application


Address of the Co-located OfficeA Labuan insurance and takaful licensee is required to inform Labuan FSA the address and contact numbers of the co-located office prior to the commencement of its operations and of any subsequent changes.

The co-located office must be segregated and independent from the office of the other entity/company and must have its own phone line, fax machine and computer terminal separate from the other entity/company. It must be managed by its own personnel with sufficient books and records that would explain activities at the co-located entity.

Name and SignboardThe name of the Labuan insurance and takaful licensee must be easily legible in Romanised characters, printed on a signboard affixed at the entrance of the co-located office and shall include the words “licensed by Labuan FSA”. The signboard must contain the following information of the Labuan insurance and takaful licensee:

• Company’s name

• Type of licence, and

• Licence number

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In addition, the Labuan insurance and takaful licensee must comply with requirements of the relevant local authorities with regard to the signboard and the co-located office, wherever applicable.

Market Conduct and Consumer ProtectionA Labuan insurance and takaful licensee that co-locates under this Guideline is expected to comply with the Guidelines on Market Conduct for Labuan Insurance and Insurance-Related Companies issued by Labuan FSA on 27 September 2007 (for a copy of this Guideline please visit www.labuanibfc.my or www.labuanfsa.gov.my).

Annual FeeThe Labuan insurance and takaful licensee that co-locates is required to pay to Labuan FSA an annual fee of MYR7,000 for each co-located office, all subsequent payment of the annual fee is payable not later than 15 January of each year.

Revocation and Surrender Labuan FSA reserves the right to vary, review, impose additional conditions or revoke the approval if Labuan FSA is satisfied, based on the information made available to it, that the Labuan insurance and takaful licensee has not complied with any laws or requirements in relation to the co-located office.

Notwithstanding the above, the Labuan insurance and takaful licensee may surrender the approval under this Guideline by notifying Labuan FSA in writing not less than one (1) month from the date it intends to close the co-located office.

OthersLabuan FSA may request the Labuan insurance and takaful licensee to provide statistical information in such manner and frequency as may be determined by Labuan FSA with regard to activities in the co-located office.

Effective DateThis guideline came into effect on 1 March 2011 and would remain effective and applicable unless amended or revoked.

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BORNEO PYGMY ELEPHANT (ELEPHAS MAXIMUS BORNEENSIS)Matriarchal in nature, these durian lovers have a life span of up to 80 years. Compared to other Asian elephants, this sub-species is smaller and chubbier, and have longer tails and straighter tusks.

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Protected Cell Companies

A Protected Cell Company is a limited company which has been separated into legally distinct cells, which allows the assets and liabilities of individual cells to be separated from one another. This flexible structure allows each cell to own part of the company’s overall share capital whilst maintaining sole ownership of its own distinct cell. Each Protected Cell is deemed a single entity and distinct in respect of the operations of the cell. The operation of a protected cell structure is intended to segregate different business operations with limited cross liability exposure.

All Labuan Protected Cell Companies are regulated under the Labuan Companies Act 1990, Part VIII(B), specifically provisions contained in Sections 130N to 130Z(C).

A Protected Cell Company is incorporated as a Labuan Company or may be converted from an existing Labuan Company limited by liability, and has the ability to form ‘cells’. These cells of a Protected Cell Company may comprise:

• A single core cell for holding non-cell assets or general assets

• Any number of cells with the intention of segregating and protecting the assets of each respective cell

As such, the provisions of the Labuan Companies Act 1990 apply with the necessary modifications required to create the cells of a Protected Cell Company. (These modifications are dealt with in the later part of this section).

Neither the core cell nor the individual cells created are deemed separate legal entities, nonetheless, each cell remains legally separated from any other cell and each has sufficient attributes to carry on business independently under the ‘umbrella’ of the Labuan Protected Cell Company.

A Protected Cell Company therefore has the ability to hold assets or investments segregated into numerous classes to cater for differing objectives of individual investors, while preserving the independence of each cell.

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A Labuan Protected Cell Company can be designed to conduct:

• Insurance business

• Captive Insurance business

• Mutual Fund business

All three businesses may be conducted under either the conventional system or in accordance with Islamic principles, by ensuring Shariah compliance in all its dealings. As such, Protected Cell Companies relating to Takaful, Islamic Captives and Islamic Funds, must ensure all Shariah principles relating to their businesses segments are adhered to. Please note however that the following requirements detailed below relate solely to conventional captives.

Application and Registration Requirements

• Protected Cell Companies intending to conduct Insurance, Captive Insurance or Mutual Fund activities are subject to Guidelines on Insurance and Insurance-Related Activities, Captive Insurance Business and Mutual Funds issued by Labuan FSA, contained herein

• Application to establish a Protected Cell Company must be done through a licensed Trust company in Labuan

• Prior to the incorporation or conversion to Protected Cell Company, the applicant must obtain a licence and approval/consent from Labuan FSA to conduct the insurance, captive insurance or mutual fund business

• Unless the application relates to a Labuan Company intending to convert to a Protected Cell Company and which already holds the relevant licence or registration, further supporting information and documentation relating to the companies proposed business will be required, depending upon the type of licence or registration sought

• Once approval/consent has been given to operate as a Protected Cell Company, a Labuan Company may be incorporated by submitting the following to Labuan FSA:

a) The Memorandum and Articles of Association b) A certified copy of the approval letter from Labuan FSA c) Payment of the relevant fees d) Any other documents and/or information as may be required by Labuan FSA for

registration e) Forms relating to the appointment of director

With regard to the documentation and information requirements on incorporation of a Labuan company, please refer to an earlier section of this guide.


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Annual FeesThe Protected Cell Company is required to pay the following annual licence fees initially upon registration with Labuan FSA and thereafter, on an annual basis on or before 15 January each year:

INSURANCE AND CAPTIVE INSURANCECore Cell MYR30,000For each Individual Cell MYR 10,000

MUTUAL FUNDCore cell MYR5,000For each individual cell MYR2,000


Name of the Protected Cell CompanyThe Protected Cell Company must include in its name the words “Protected Cell Company” or the letters “PCC”. In addition, each cell is required to have its own distinct name or designation. The Memorandum or Articles of Association of the Company must also indicate that the said articles refer to a Protected Cell Company.

Disclosure A Protected Cell Company must notify all persons entering into transactions with it that it is a Protected Cell Company. In addition, the Protected Cell Company must specify the particular cell that is entering the transaction and make it clear that only the assets of that cell will be available to meet that said cell’s liabilities. Share Capital and DividendsA Protected Cell Company may issue a ‘cell share’ with a separate certificate of title to distinguish it from other shares, including shares of other cells. In addition to the Register of Shareholders, a Protected Cell Company must maintain an index containing details of each cell shareholder and the particular cell to which the ‘cell shares’ relate.

Dividends may be paid in relation to ‘cell shares’ by reference to the performance of the cell for which the cell shares have been issued. The profit or losses and/ or the assets and liabilities of other cells are not taken into account. All Labuan Protected Cell Companies are required to carry on business in any currency other than the Malaysian currency except as permitted by the relevant authorities.

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General and Cell AssetsThe assets of a Protected Cell Company are represented by either cell assets held within, or on behalf of, the individual cells or general assets which are held by the core cell and not related to any particular cell.

Assets are legally segregated between individual cells and records must be maintained to clearly identify and separate assets from assets of other cells and general assets.

Dealings and Transactions of Cell Assets between Cells and with Third PartiesA Protected Cell Company may transfer cell assets from one cell to another or amalgamate or consolidate one or more cells, provided Labuan FSA gives its consent, once it is satisfied that shareholders and creditors will not be unfairly prejudiced or the consent of creditors has been obtained.

When dealing with third parties, other than in the normal course of business, no transfer of cell assets may be made unless:

• The directors are satisfied that creditors have consented to the transfer or that the creditors will not be unfairly prejudiced and Labuan FSA has consented to the transfer

• Acting on the directors’ resolution, the shareholders pass a special resolution agreeing to the transfer

Reduction of CapitalThe share capital of a Protected Cell Company and the cell capital of the individual cells may be reduced in accordance with provisions relating to the reduction of share capital of Labuan Companies, provided that the amount of the share capital of its general assets will not be reduced to an amount less than the cell capital of any of its cell assets.

Receivership, Winding Up and Cell LiquidationThe provisions relating to the distribution of property of a Labuan Company apply to a Protected Cell Company and its individual cells. The insolvency of an individual cell should not affect the Protected Cell Company or the other remaining individual cells.


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Rights of CreditorsThe rights of creditors are limited to the assets of the individual cell incurring the liability, and creditors should not attach their rights to the assets of another individual cell. Additional protective measures to ensure the integrity of the cells, include:

• Any party found responsible for using cell assets of one unrelated cell to satisfy the liabilities of another debtor cell must make good the loss incurred by that unrelated cell

• Similarly, any party responsible for seizing assets belonging to one cell to satisfy the liability of another cell is deemed to hold such assets ‘on trust’ for the Protected Cell Company which, in turn, will apply any proceeds received from the seized assets to compensate the cell affected

In the event individual cell assets are insufficient to discharge the individual cell’s liabilities, the cell creditors may have recourse to the non-cellular assets of the core cell.

LiabilitiesAs indicated above, only the cell assets of the cell that incurs a liability may be used to satisfy that said liability, and the creditor has no right of recourse against the assets of other cells.

If a liability does not relate to a particular cell, the liability is to be satisfied from the Protected Cell Company’s general assets. In addition, the cell assets attributable to a particular cell are also protected from any claims from Shareholders of the Protected Cell Company.

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PROBOSCIS MONKEY (NASALIS LARVATUS)These cheeky monkeys are endemic to Borneo’s low elevation mangrove forests, swamps and lowland riparian forests. Often seen in large jovial groups its distinctive large and protruding nose is key in attracting the female sex!

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Partnerships

The governing legislation for the business and operations of Labuan Partnerships is the Labuan Limited Partnerships and Labuan Limited Liability Partnerships Act 2010 and Shariah compliant Partnerships are governed by the Labuan Islamic Financial Services and Securities Act 2010.

There are three forms of Partnerships in Labuan IBFC, namely:

• Limited Partnerships

• Limited Liability Partnerships

• Recognised Limited Liability Partnerships

LIMITED PARTNERSHIPSA Limited Partnership is a business entity comprising two or more partners who operate or manage a business together. The minimum number of partners for a Labuan Limited Partnership is two partners i.e. one general partner and one limited partner and the maximum number of partners allowed is 50 partners.

Partners may be a corporation except for firms which are set up to offer professional services, in which case, it must consist of natural persons and supplemented with professional indemnity insurance coverage.

• General Partner General partners are, in all major respects, in the same legal position. Therefore, they

have management control; share the right to use partnership property; share the profits of the firm in predefined proportions; and have joint and several liabilities for the debts of the partnership

• Limited Partner Limited partners contribute capital to the partnership but do not participate in the daily

operations of the company. The limited partner shall not be liable as a general partner unless the limited partner participates in the management of the Limited Partnership

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Key Operational Requirements

• All documentations required to be submitted to Labuan FSA must be filed through a Labuan Trust company

• A Labuan Limited Partnership must have its registered office in Labuan, which may be the registered office of a Labuan Trust company. A register showing the particulars of the Labuan Limited Partnership as well as its constituent document must be kept in this office

• The dissolution of a Labuan Limited Partnership is only effective upon the lodgement of notice of dissolution made by the general partner to Labuan FSA. A Labuan Limited Partnership may also be dissolved upon the death of the General Partner or by a Court Order

• A Limited Partnership has the duty to keep proper accounting and records which could sufficiently and accurately explain its transactions and financial position. These records must be kept at the registered office or any other suitable place in Labuan and accessible by all partners for inspections at all times.

LIMITED LIABILITY PARTNERSHIP A limited liability partnership is a partnership in which some or all partners have limited liability, hence one partner is not liable for another partner’s misconduct or negligence. This allows a limited liability partnership to exhibit characteristics similar to a private company and protects members from personal liability, except to the extent of their investment in the Limited Liability Partnership.

Key Operational Requirements

• A Labuan Limited Liability Partnership shall have a registered office in Labuan, which may be the registered office of a Labuan trust company

• Both individual and corporation may be a partner in a Labuan Limited Liability Partnership. The minimum number of partners to form a Labuan Limited Liability Partnership is two persons

• A Labuan Limited Partnership or a Labuan company may be converted into a Labuan Limited Liability Partnership subject to statutory provisions. The obligations, contracts, and employment agreements entered into prior to its conversion shall continue and the liability of the partners for the existing liabilities shall also continue as in their prior capacity as a partner in a Labuan Limited Partnership or a shareholder in a Labuan company

• A Limited Liability Partnership must have at least one “general partner” with unlimited liability

• A Limited Liability Partnership has a legal personality separate from its partners. It can hold assets in its own name, sue and be sued in its own name

• A Limited Liability Partnership has perpetual succession in the sense that any change in its partners will not affect its existence, right and liabilities

• The relationship between the partners in an Limited Liability Partnership is determined according to the partnership agreement

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• Partners are considered agents of the Limited Liability Partnership and their actions bind the Limited Liability Partnership unless the partner has no authority to bind the Limited Liability Partnership and a third party dealing with the partner knows of his lack of authority

• A Limited Liability Partnership is required to keep proper accounting records but auditing and filing of accounts with the authority is not required. However, a Labuan Limited Liability Partnership is required to submit an annual solvency certificate with Labuan FSA on or before its anniversary of registration

Registration Requirements A Labuan Limited Partnership and Limited Liability Partnership are subject to the same restriction or prohibition applicable to a Labuan company under the Labuan Companies Act 1990. The general process for registering Limited Partnerships or Limited Liability Partnerships involves the following:

• The applicant must appoint a Labuan trust company for the registration, which would conduct due diligence on the applicant. All documentation required to be submitted to Labuan FSA must be filed through a Labuan trust company

• The applicant must reserve its company name. A Labuan Limited Partnership shall have either the words “Limited Partnership”, “Ltd.P”, or “L.P” as part of its name. Similarly a Labuan Limited Liability Partnership shall have either the words “Limited Liability Partnership”, “(Labuan) L.L.P.” or “Labuan LLP” as part of its name (any other abbreviations in romanised characters are accepted by Labuan FSA)

• The name of the Partnership may be in any language or number of characters

Registration under Labuan Islamic Financial Services and Securities Act 2010Section 131 (2) of the Act requires that the applicant appoint a qualified person to act as a Shariah adviser for the Partnership. The duties of the Shariah adviser pertain to the management and operations of the Islamic Partnership to ensure compliance with Shariah principles.

Fee StructureA Labuan Partnership is required to pay annual fees and any other fees for services rendered by Labuan FSA as stated below:

Registration Fee MYR 1,000Registration Fee for Recognised Limited Liability Partnership MYR 1,000Annual Fee (on or before the anniversary date of registration) MYR 1,000Approval for Change of Name MYR 250Restoration to Register MYR 1,000

All Labuan Limited Partnerships and Limited Liability Partnerships are expected to carry on business in any currency other than the Malaysian currency except as permitted by the relevant authorities.

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PYGMY FLYING SQUIRREL (PETAURILLUS)This nocturnal species is the smallest flying squirrel species in the world. Contrary to its name, this squirrel isn’t capable of powered flight, instead it glides between trees when foraging and nesting.

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Wealth Management

Labuan IBFC offers a wide range of wealth management tools suitable for high net worth individuals, family offices and other wealth managers needing a range of structures offering efficient wealth transfer, dynastic planning and inheritance management.

Among the Acts which provide these tools are the Labuan Trusts Act 1996, Labuan Foundations Act 2010 and the Labuan Financial Services and Securities Act 2010.

FOUNDATIONS A Foundation is a corporate body with a separate legal entity, usually established by the founder to hold assets with the objective of managing these assets for the benefit of a class of persons on a contractual basis. It is deemed a separate legal entity from its managers (i.e. its officers and its council) and is typically used for private wealth management and charitable purposes.

All aspects of Labuan Foundations are governed by the Labuan Foundations Act 2010. Islamic Foundations are provided for in Labuan governed by Labuan Islamic Financial Services and Securities Act 2010. Islamic Foundations are required to ensure its aims and operations comply with Shariah principles.

Characteristics of Labuan Foundations

• No minimum capital is required to register a foundation in Labuan

• A Labuan Foundation exists ‘in perpetuity’ as there are no period rules in the Labuan Foundations Act 2010, this provides continuity of the foundation at the discretion of the founder

• A key attraction of the Labuan Foundations Act 2010 is that it provides reserve powers to the founder, providing the founder more control compared to a settlor of a trust. Additionally, since a founder may also be a council member, he may further direct and manage the foundation’s assets

• All aspects of the foundation is kept confidential except for the charter

• There is no statutory requirement for an audit

• A foundation established in another jurisdiction can be legally redomiciled to Labuan and vice versa, provided that the other corresponding jurisdiction permits

• A Labuan Foundation is protected from foreign claims and cannot be forcefully liquidated to satisfy other obligations such as claims arising from divorce, lawsuit or creditors

• The Labuan Foundations Act 2010 provides for a fraud disposition period of 2 years

• As the Foundation is a separate legal and corporate entity, all liabilities remain corporate liabilities of the foundation

• Council members do not owe fiduciary duty to beneficiaries and hence, this eliminates competing beneficiaries interests

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• Officers, council members, supervisory person and the Foundation’s secretary benefit from statutory indemnification for liabilities incurred by the foundation unless the liabilities arise from personal negligence or there is proof of bad faith on the part of the officer

• Confidentiality provisions restrict the officer, council member, supervisory person and secretary from disclosing any information relating to the foundation unless otherwise required or provided for by law, the court or the charter

• All Labuan Foundations are expected to carry on business in any currency other than the Malaysian currency except as permitted by the relevant authorities

The structure of a Labuan Foundation consists of the following:

A Registered OfficeA Labuan Foundation must be registered with Labuan FSA and have a registered office, where the administration and operations of a foundation is carried out in accordance with contractual principles.

CharterThe relationship within a foundation is contractual and the charter sets out the parameters within which the Labuan Foundation is to be managed and governed.

Key Management The key management of a Labuan Foundation consists of a council, an officer and a secretary. The council is responsible for the general supervision of the foundation’s management, ensuring that the purpose for which the foundation was established is fulfilled in accordance with the charter, articles and the law.

In effect, the council is similar to the Board of Directors of a company. The duties of the officer is to ensure responsible and proper administration of the foundation. The secretary acts as the service provider to the foundation and performs all secretarial functions including filing and lodging of documents with Labuan FSA.

AssetsAssets placed in the Labuan Foundation are owned by the foundation and are to be applied according to identified purposes. However, these assets must be non-Malaysian properties unless the said Foundation is a charitable foundation or said Malaysian assets have been approved by Labuan FSA.

Beneficiaries This may include individuals, corporate entities or charities and are those who have vested interest in the assets of the foundation. Unless specifically provided in the charter or articles, beneficiaries have no rights to the foundation’s assets and are not owed any fiduciary duties.

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Dissolution A Labuan Foundation can be dissolved upon the passing of a resolution by the officer on the basis that the foundation is established for a definite period and that period has expired; the purpose of the foundation is fulfilled or becomes incapable of fulfillment; or the charter requires such dissolution. After the dissolution, the ownership of the remaining assets will be transferred to the beneficiaries.

Registration

• Every Labuan Foundation must be registered with Labuan FSA

• Application for registration must be made by a Labuan trust company (i.e. secretary of the foundation) to Labuan FSA. Following acceptance of the required documentation by Labuan FSA and the payment of the required registration fee, a certificate of registration will be issued

• The following completed forms must be submitted to Labuan FSA a) Form 8, “Application for Registration of a Labuan Foundation” which includes the

following particulars:

1. The Foundation’s name 2. An original copy of the Charter 3. The date of the Charter 4. The purpose and objects of the Foundation 5. The date of the Foundation’s articles, if any, and the date of any amendments made

to the articles 6. The name and address of the secretary 7. The address of the registered office of the Labuan Foundation 8. The duration of the Labuan Foundation b) Form 9, “Declaration by Labuan Trust Company as Secretary” that includes a statutory

declaration by the Secretary regarding compliance by the Foundation with Labuan Financial Services and Securities Act 2010 or the Labuan Islamic Financial Services and Securities Act 2010 and the Labuan Foundations Act 2010

Please note that in order to establish a Labuan Islamic Foundation, the following shall be observed:

• The Memorandum of Association must state that the aims and operations of the Labuan Islamic Foundation will be in compliance with Shariah principles

• The officers of a Labuan Islamic Foundation shall appoint a qualified person as a Shariah adviser, or consult a qualified person, who shall advise the Labuan Islamic Foundation on the management of the said Foundation according to Islamic principles

• The actual operations of the Labuan Islamic Foundation must be in compliance with Shariah principles

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Fees Registration fee MYR750Annual fee MYR750Approval for change of name MYR250Restoration to Register MYR750Redomiciliation from another jurisdiction MYR750

Fee imposed for search or inspection of any document kept by Labuan FSA:By the founder, beneficiaries, counsel and officers MYR200By others MYR200

TRUSTS A trust is a relationship whereby property is managed by one person for the benefit of another, the beneficiary. In this circumstance, the trust is set up by the settlor who is the person who entrusts the said property to a trustee, and the terms of the trust is set out in a trust deed, which details the parameters of the trust. The Labuan Trusts Act 1996 which was amended in 2010 governs trusts on Labuan IBFC.

The Labuan Trusts Act 1996 provides for various types of trusts to be established including but not limited to:

• Purpose trusts

• Discretionary trusts

• Educational trusts

• Interest in possession trusts

• Parental trusts for children

• Maintenance trusts

• Trusts for vulnerable people

• Heritage trusts

• Charitable trusts which includes the unique provisions for “advancement of human rights and fundamental freedom”

• Spendthrift or protective trusts

• Labuan special trusts

In addition, the Act also specifically provides that there is no requirement to register any trust with Labuan FSA, although settlors are provided the option to register their trust should they so wish.

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Characteristics of Labuan Trusts

• The settlor of a Labuan trust may be a non-resident or a resident of Malaysia who can retain certain wide powers including revoking, amending or varying the terms of the trust

• The beneficiaries of a Labuan trust may be a non-resident or a resident of Malaysia

• At least one of the trustees of a Labuan trust must be a Labuan Trust company, however a trustee cannot also act as an Enforcer, instead a settlor or his representative may act as an Enforcer

• Where a trust property includes Malaysian property, prior approval must be obtained from Labuan FSA to include the Malaysian property into the trust. Once approved, any income derived from the said Malaysian property is subject to Malaysia’s Income Tax Act 1967. In comparison, all foreign property income shall be subject to Labuan Business Activity Tax Act 1990

• The duration of a Labuan trust may be prescribed, failing which a Labuan trust exists in perpetuity. A Labuan trust may also convert from a trust with a fixed duration to one with an unlimited period, by altering the duration listed in the trust deed

• A Labuan Special Trust is a trust that owns shares in an underlying asset holding vehicle on an “own and retain” basis, this may allow designated shares of the company to be retained indefinitely via a trustee and the management of the company may be carried-out by the directors of the company without any power of intervention being exercised by the trustee. This form of trust is ideal for succession or dynastic planning as well as for matrimonial settlements as the running of the company by its directors will not be significantly impacted with the injection of designated shares into trust

• The Act allows the settlor to provide a letter of wishes, in addition to provisions contained in the Trust Deed

• The Act also provides for a fraud disposition period of 2 years

Fees for all Labuan trusts:Registration fee MYR750Renewal of certificate of registration MYR50

Transactions conducted by a Labuan trust must be in currencies other than the Malaysian Ringgit, except as permitted by the relevant legislation and authorities.

PRIVATE TRUST COMPANIES A Private Trust Company is a Labuan company formed for the specific purpose of acting as trustee for a trust or trusts, in which the beneficiaries of the said trust or trusts are a group of connected persons in relation to the settlor, the person creating the private trusts.

Thus by definition, a private trust company does not solicit from or provide trust company business services to the public. Sections 73 to 78 of the Labuan Financial Services and Securities Act 2010 provides for the establishment, registration and running of a Labuan Private Trust Company.

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Registration RequirementsIn order to register a Labuan Private Trust Company, a Labuan company or a foreign Labuan company must first be incorporated. This Labuan Company then applies for a licence to operate a Private Trust Company with Labuan FSA, appending the following:

• Completed copy of Form PTL – Application for Registration to Carry on Labuan Private Trust Company Business

• A certified copy of the executed trust instrument

• A letter of undertaking that it shall not carry out any trust company business other than with respect to the private trust or private trusts, and

• Appoint a trust company as its agent

Operational Requirements A private trust company can only provide trust company services to a private trust and the type of services may include any of the following:

• Trustee services, including review of the trust instrument, the type of assets funding the trust and the management of the trust itself

• Secretarial duties, such as lodgement of documents and reports through an appointed agent, namely a Labuan trust company

• Executor, administrator and agent of the company in persuant of the objectives of the trust company itself

All Private Trust Companies are required to submit a certified copy of the executed trust instrument as well as any other subsequently executed trust agreement. In addition it must also:

• Ensure compliance with Anti Money Laundering and Counter Financing of Terrorism Guideline as issued by Labuan FSA

• Notify Labuan FSA of any change in its appointed trust company within 7 days of the change

• Ensure proper arrangements are in place to segregate assets and valuables it receives in its capacity as a private trust company from its own assets and liabilities

• Appoint an external auditor and conduct an annual audit

In addition, there is an annual fee of MYR5,000 payable to Labuan FSA on 15 January for every Private Trust Company established.

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SMALL TOOTHED PALM CIVET (ARCTOGALIDIA TRIVIRGATA)These nocturnal beings are solitary, feedingon figs, small mammals and even insects. Similarto skunks, they produce a secretion from theiranal glands to deter predators and marktheir territory.

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Fund Management

All fund management entities and funds set up in Labuan IBFC are licensed and regulated under Part III, of the Labuan Financial Services and Securities Act 2010, specifically provisions contained in Sections 28 to 44.

FUND MANAGEMENT COMPANYSections 40 to 44 of the Labuan Financial Services and Securities Act 2010, contains detailed requirements and prerequisites applicable to a Labuan fund management company.

The Act defines a fund management company or manager as a person, who for valuable consideration, provides management services and/or investment advice, or administrative services in respect of securities for the purposes of investment, investment advisory services, fund manufacturing services or such other activity as may be prescribed by Labuan FSA.

In addition, a licensed fund management company from a recognised jurisdiction or a Labuan company set-up by individual fund managers, who are licensed by relevant home supervisory authority also qualifies to apply as a fund management company.

Conditions for Establishment and Operations The applicant company:

• Requires a one-time approval from Labuan FSA if it intends to invest in Malaysia, however subsequent sales and purchases of the investments do not require further approval

• Which manages several funds as a group may not have subscription of more than 15 per cent in the total issued and outstanding shares of each fund

• Or its affiliates or directors and subscribers who own more than 10 per cent of the issued and outstanding shares of a fund company may not buy or sell the securities of the investment fund or grant or receive loans to or from it, and

• May carry out its activities from an office in Labuan, or from outside Labuan subject to approval from Labuan FSA. For fund managers from recognised jurisdictions to operate in Labuan, it must also register under Labuan Companies Act 1990

• Must have at least MYR300,000 in any foreign currency as its paid up capital

• May be required by Labuan FSA to provide financial data, statistics and other information

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Business Ethics and Reporting Requirements

• All fund managers must conduct its business with due diligence and sound principles, maintain adequate and proper records and books of accounts as well as indicate clearly its names and licence or registration number on its letterhead, stationery and other documents

• The firm must obtain approval of Labuan FSA for any change of business plan

Licensing Requirements

• The parent company or holding company of the applicant must have a sound track record in fund management activities

• An applicant company should submit, where applicable, audited annual accounts for the 3 years immediately preceding the application

• The applicant must show proven performance record with consistent returns on equity and assets. It is required to show a profit within 3 years of operations after obtaining a licence

• The directors and the Chief Executive Officer must be deemed fit and proper persons and prior written approval from Labuan FSA is required before such appointments can be made. The applicant must have or have available to him sufficient knowledge, expertise, resources and facilities for the proper management or administration of a fund

• The applicant is to submit a business plan for the first two consecutive years of operations in Labuan IBFC, this plan should include initiatives towards promoting Labuan as an international business and financial centre

• The directors of company must provide a signed declaration on confidentiality and secrecy

• The applicant company must be managed by sufficient number of staff

• The applicant is required to submit a fund manager’s business code of conduct, and

• There must be no adverse report from any reliable sources such as the relevant home authority on the applicant, directors and/or any members of senior management of the company


• The applicant company must maintain a registered office in Labuan and all dealings by the fund must be done through the registered office in, from or through Labuan

• Transactions conducted by the applicant must be in currencies other than the Malaysian Ringgit, except as permitted by the relevant legislation and authorities

• The applicant company shall provide services to non-residents only

• The applicant company shall appoint an approved auditor

• The applicant company must notify Labuan FSA of any amendment or alteration to any of its constituent documents; and

• The applicant company must be active in its operations, and this will be judged from the performance and number of funds managed in each year

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Application Requirements All applications for setting up a fund management entity should be directed to the Director General, Labuan FSA and should include, amongst others the following:

• The application may be made by a company incorporated or registered under the Labuan Companies Act 1990

• Written permission sought pursuant to Section 40 of Labuan Financial Services and Securities Act 2010 to conduct fund management business by completing Form 3/FM, ‘Application for a Fund Manager’s Licence/Registration’

• Once approved, the fund manager’s details shall be entered into the register detailed under Section 52 of the Labuan Financial Services and Securities Act 2010

• Permission to set up shall be given in writing by Labuan FSA to a fund management company licensed or qualified in a recognised country or jurisdiction as detailed below

List of recognised countries/jurisdiction:

1) OECD countries, including European countries applying the Undertaking for Collective Investment in Transferable Securities (UCITS)

2) Asian countries comprising:

a) Singapore b) Hong Kong c) Malaysia d) Philippines e) Brunei f) Thailand g) Indonesia h) Taiwan i) Bahrain

3) Established Financial Centres:

a) Jersey b) Guernsey c) Isle of Man d) Bermuda e) Cayman Islands

Annual FeesThe payable annual fees are:

• For fund management companies which operate from outside Labuan MYR10,000

• For fund management companies which operate from within Labuan MYR5,000

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MUTUAL FUNDSThe setting up of Mutual Funds and Islamic Mutual Funds in Labuan IBFC are governed by the Labuan Financial Services and Securities Act 2010 specifically Part III, Sections 28 to 39, and Labuan Islamic Financial Services and Securities Act 2010 Part IV which state that a Labuan registered entity including a Labuan Company, Partnership, Protected Cell Company, Foundation or Trust may be registered with Labuan FSA as a mutual fund.

There are two types of mutual funds prescribed under the Act:

• Private funds are those whose shares are not offered to the general public and are owned or held by:

a) Not more than 50 investors, where the initial investment of each of investor is not less than MYR250,000 or its equivalent in any foreign currency, or

b) Any number of investors, where the initial investment of each of investor is not less than MYR500,000 or its equivalent in any foreign currency

• Public funds are those whose shares are offered for subscription to any member of the general public and is not a private fund. The Minister of Finance, Malaysia also has the discretion to designate a fund as a public fund

PRIVATE FUNDS Labuan Private Funds are governed by Section 28 to 30 of the Labuan Financial Services and Securities Act 2010, and Labuan Islamic Private Funds under Labuan Islamic Financial Services and Securities Act 2010 which provides that a private fund can carry on its affairs by merely giving notice in writing of its scope and nature of business to Labuan FSA.

This notification can be an information memorandum or such other offering document and should be lodged through a licensed entity. This document will be considered to be a prospectus and the regulator will enter the particulars into a register.

A lodgement fee equivalent to MYR2,000 is applicable and all transactions conducted must be in currencies other than the Malaysian Ringgit, except as permitted by the relevant legislation and authorities.

A private fund can be structured as Labuan company, a corporation incorporated under the laws of a recognised country or jurisdiction, a partnership, a protected cell company or a unit trust. In addition, fund managers of private funds are not required to also be licensed as a fund manager either in Labuan or any other jurisdiction and need not adhere to a minimum capital requirement.

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PUBLIC FUNDS Labuan Public Funds are governed by Section 31 to 39 of the Labuan Financial Services and Securities Act 2010, and Labuan Islamic Public Funds under Labuan Islamic Financial Services and Securities Act 2010 which states that no public fund shall carry on business in, from or within Labuan unless it has been registered and granted provisional acceptance from Labuan FSA.

A public fund granted provisional acceptance requires prior written consent from Labuan FSA before it can carry on business, and an annual fee equivalent to MYR2,000 is payable. The applicant is also required to submit to Labuan FSA the following:

• A statement setting out the scope and nature of the business to be carried out in, from or within Labuan

• The instrument by which the applicant is constituted or such other proof required by the regulator that the applicant is lawfully constituted according to the Act or under the laws of any other recognised country or jurisdiction

• Names, addresses and relevant experience of the directors/general partners/trustees of the fund

• The person in control or director or chief executive officer of the applicant fund must be a fit and proper person, and the appointment of the Board of Directors and chief executive officer requires prior approval from Labuan FSA

• A signed declaration by the directors/general partners of the applicant fund with regards to confidentiality and secrecy

• A copy of the draft prospectus which should comply with requirements under Labuan Financial Services and Securities Act 2010, and shall contain at least the following information:

a) A general description of the proposed fund b) The investment policies and objectives observed by the fund c) The prospect for the fund, given its nature, investment policies and objectives, and

where applicable, an analysis of the risk by its nature and the risk of the country and region where the fund intends to invest

d) The proposed minimum subscription proceeds net of costs (e.g. underwriting fees related to the offer)

e) The names of all underwriters and amount proposed to be underwritten by each underwriter

f) The distribution policy of the fund g) Details of taxes to be levied on income and/or capital of the fund and any taxes to be

deducted from distributions to shareholders h) A statement summarising the rights of investors

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• A key data page giving a summary of the key features of the particular fund, which shall include at least the following information:

a) Issue price of the shares b) Nature and significant expenses to be incurred by the fund c) Statement of the potential risks of investing in the fund d) Information on the securities to be offered by the fund e) The extent to which it intends to invest in derivatives and unlisted securities, should

the fund not invest in such investments, the prospectus must include an appropriate statement to that effect

f) Information on the managers and custodian of the fund and their key personnel, full details of the experience of the managers and custodian, the terms of appointment and termination. The information shall also include particulars of:

1. Any shares held by them in the fund 2. Any borrowings given by them to the fund 3. Any other obligations of the fund to them g) All other information affecting the fund’s business

Operational Requirements for Public FundsThe applicant fund:

• Must appoint a fund manager, trustee, administrator and custodian who are approved by Labuan FSA

• Must maintain a registered office in Labuan. For a Labuan fund permitted to be managed by a fund manager from a recognised country or jurisdiction, at least one of the fund-related businesses, such as custodian, trustee or fund administration, must be based in Labuan

• Which has been granted provisional acceptance is not allowed to accept subscription monies or make investments until granted registration. It is only allowed to use its provisional acceptance for promotional or marketing purposes

• Must transact in currencies other than the Malaysian Ringgit, except as permitted by the relevant legislation and authorities

• May be a multi class fund, e.g. there may be various currencies and classes of assets present within a fund

• Shall appoint an approved auditor

• Must notify Labuan FSA of any amendments or alteration to any of its constituent documents

• Must conduct its business with due diligence and sound principles, maintain adequate and proper records and accounts, while complying with local laws and regulations in the jurisdiction it services clients

• Must indicate clearly its name and licence number on its letterhead, stationery and other documents

• Must comply with the requirements with regard to its accounts and auditing

• Must obtain the approval of Labuan FSA for any changes in its business plan

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Annual FeesPRIVATE FUNDSA one-off lodgement fee MYR2,000

PUBLIC FUNDS Yearly fee MYR2,000

Should either the private or public fund be set up using a Labuan Protected Cell Company, the annual fee would instead be:

Core cell MYR5,000Each cell MYR2,000

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LEATHERBACK TURTLE (DERMOCHELYS CORIACEA)The leatherback turtle is the world’s largest marine reptile and has been around for more than one hundred million years. Their hydrodynamic body allows them to swim across vast oceans to return time and again to breed on Malaysian beaches.

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Leasing

Leasing means the business of letting or sub-letting property on hire for the purpose of the use of such property by the hirer, regardless whether the lease is with or without an additional option to subsequently purchase the said property, or other such business as approved by the Minister of Finance, Malaysia.

This reference to property includes any plant, machinery, equipment or other chattel attached or to be attached to the ground. With the exception to the transportation of passengers or cargo by sea or the letting out on charter of ships on a voyage or time charter basis, Labuan leasing companies are allowed to carry on leasing of ships on a “bare boat” basis.

All Labuan leasing companies are regulated under Section 86 of the Labuan Financial Services and Securities Act 2010.

An application for a leasing licence in Labuan will be considered from a Labuan company incorporated or registered under the Labuan Companies Act 1990 or a Special Purpose Vehicle which facilitates leasing transactions, including inter-company transactions.

Application RequirementsThe application should include:

• Information on the nature of business of the applicant

• A business plan detailing the operations of the applicant with regard to its Labuan entity and the nature of the leasing transactions, including whether the lease will be conducted with residents or non-residents

• Audited financial statements for the last two years, if applicable

• A copy of the necessary approval from the Malaysian Central Bank to deal with Malaysian residents

• All members of the Board of Directors and senior management of the leasing company must consist of persons deemed “fit and proper” and prior written approval from Labuan FSA is required before such persons are appointed

• Any other information that may be relevant to the application

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Should there be a subsequent leasing transaction, conducted by an established Labuan leasing company, the additional provisions set out below also apply:

• The subsequent leasing transaction is deemed to be an additional leasing agreement other than the original agreement entered by the lessor with the existing or new lessee

Operational RequirementsThe applicant company:

• Must ensure that all transactions are done through Labuan

• Must maintain proper records in Labuan

• Must maintain sufficient capital to support operations

• Must transact in currencies other than the Malaysian Ringgit except as permitted by the relevant legislation and authorities

• Must conduct its business with due diligence and sound principles and comply with the laws and regulations where it services its clients

• Must indicate clearly its name on its letterhead, stationery and other documents

• Must notify Labuan FSA of any changes to its constituent documents, shareholdings, management or business plans

• Must provide a signed declaration by its directors and senior staff on confidentiality and secrecy

• Is to submit to Labuan FSA, within three months after the close of each financial year, a copy of its audited annual balance sheet and profit and loss account

• Is to provide statistics and information as may be required by Labuan FSA in relation to prudential information, general business conduct and volume and direction of business in Labuan

• Is required to comply with any other requirements issued by Labuan FSA from time to time

FeesOnce approval is granted by Labuan FSA, the said leasing company is required to make the following payments:

TYPE OF FEE LEASE TO MALAYSIAN LEASE TO NON- RESIDENT MALAYSIAN RESIDENT

Annual Fee (before 15 January) MYR40,000 Nil

Each Subsequent Leasing Transaction MYR20,000 (one-off ) Nil

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WALLACE’S FLYING FROG (RHACOPHORUS NIGROPALMATUS)This photogenic bright green frog, does not actually fly; however its their ability to glide across the rainforest, often descending at an angle of less than 45° between perches, has won it the appellation.

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Shipping

Malaysia International Ship Registry (MISR) is a body for the registering of international ships. The MISR has been established to encourage individual and foreign shipping companies to register their ships in Malaysia without having to comply with the requirement of Malaysian majority share holder.

All ships registered in Labuan will be entered into MISR specified by Part IIC, Merchant Shipping Ordinance 1952 which is the legal framework governing all Labuan registered ships. These ships shall fly the Malaysian flag, operate in international waters and will benefit from Malaysia’s extensive double taxation treaty network. The Registrar-General may register a ship as a MISR based on the following attributes:

• It is owned by a corporation incorporated in Malaysia

• Has a corporate office established in Malaysia

• Majority of shareholding including voting rights in the corporation are not held by Malaysian citizens

• Before applying for a ship to be registered, the applicant should appoint a ship manager who is either a Malaysian citizen residing in Malaysia or a company incorporated in Malaysia with its principal place of business in Malaysia

In order to register with MISR, the owners of the said vessel should either be a corporation established and incorporated in Malaysia or a corporation where the majority of the shareholders are not Malaysians.

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Vessel Age and Survey Requirements:No ship shall be registered under MISR unless:

• It is fitted with mechanical means of propulsion

• It is not less than 1,600 gross tonnage; and

• The age of the ship is not more than 15 years if it is tanker or a bulk carrier or not more than 20 years if it is of a type other than a tanker or a bulk carrier

Surveys are conducted by Ships Surveyor working under the direction of the Surveyor-General who may also authorised classification societies on his behalf. An application in writing to the Registrar of Ships to receive a vessel’s name approval must include:

• Proposed name for a Malaysia vessel must be approved by the Registar General of Ships. Owners should apply for the vessel’s name at least 14 weeks in advance before the date at which the vessel is supposed to be registered

• Three (3) names can be submitted for approval. An approved name is valid for a period of 12 months

Transactions conducted by a Labuan Shipping Company must be in currencies other than the Malaysian Ringgit, except as permitted by the relevant legislation and authorities.

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BUFFY FISH OWL (KETUPA KETUPU)These nocturnal birds known in Malaysia as “burung hantu” or ghost birds, have prominent white patches above the bill and piercing yellow iris. Although sightings are rare, their distinctive call is often heard ringing through Borneo’s rainforest.

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Factoring

Factoring business means the acquiring of accounts receivables due to international business at a discounted interest rate and is further defined under Section 86, Labuan Financial Services and Securities Act 2010.

Qualifications Applicants for a factoring licence could be any one of the following entities and should not have any adverse reports against it from a reliable source:

• Labuan company incorporated or registered under the Labuan Companies Act 1990

• Special Purpose Vehicle set up to facilitate inter-company factoring transactions

• Factoring companies already registered under the Malaysian Banking and Financial Institutions Act 1989

Operational requirementsThe applicant company:

• Has an option of either setting up an office in Labuan or operating through its registered office, however all transactions must be done through Labuan and adequate and proper records and books of accounts must be maintained in Labuan

• Must maintain capital sufficient to manage the company’s daily operations

• Must transact in currencies other than the Malaysian Ringgit, except as permitted by the relevant legislation and authorities

• Is prohibited from dealing with Malaysian residents other than those approved by the Malaysian Central Bank

• Must conduct its business with due diligence and sound principles and comply with the local laws and regulations where it services its clients

• Indicate clearly its name on its letterhead, stationery and other documents

• Must appoint an auditor

• Is to submit to Labuan FSA within three months after the close of each financial year, one copy of its audited annual balance sheet and profit and loss account

• Is to provide statistics and information as required by Labuan FSA in relation to prudential information, general business conduct and volume and direction of business in Labuan

• Must notify Labuan FSA of any change to its constituent documents, shareholdings, management or business plan

• Is to provide a signed declaration by directors and senior staff of the applicant on confidentiality and secrecy

• Must adhere to any other requirements issued by Labuan FSA from time to time

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Application Requirements All applications should be directed to the Director General, Labuan FSA and should include, amongst others the following:

• The nature of the business of the applicant

• A business plan detailing the operations and strategies of the applicant

• The composition of the Board of Directors and senior management of the applicant (please note that prior written approval of Labuan FSA must be obtained for the appointment of directors, controller or chief executive officer)

• Audited financial statements of the applicant for the last two years, if applicable, and

• Any other information that is relevant to the application

Annual FeeAll licensees are required to pay Labuan FSA an annual licence fee on or before 15 January each year the following sum:

• MYR40,000 for factoring firms with a physical presence in Labuan

• MYR60,000 for factoring firms without physical presence in Labuan

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BORNEAN SLOW LORIS (NYCTICEBUS MENAGENSIS)Till the late 19th century, the aborigines of Borneo believed these small animals were the gatekeepers of heaven, and that each had their own personal slow loris waiting for them in the afterlife.

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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 for consideration of brokerage fees paid. It however does not include the buying or selling of foreign currencies by the said broker as principal in such markets. Section 86 of the Labuan Financial Services and Securities Act 2010, governs money broking activities in Labuan IBFC.

Any of the entities below may be licensed as a Labuan money broker:

• A Labuan company incorporated under the Labuan Companies Act 1990 (with money broking expertise), or

• Any licensed institutions under the Malaysian Banking and Financial Institutions Act 1989 with prior approval from the Central Bank of Malaysia

• A licensed domestic (Malaysian onshore) money broker

All applicants from the three categories above should have a good track record of financial performance, at least in the three years preceding its application and is committed to setting up a functional operations in Labuan.

Regulatory Requirements

• The applicant company must have a paid up capital of MYR300,000 (unimpaired by losses) or its equivalent in any foreign currency

• The applicant company must inform Labuan FSA of any changes in its shareholding structure and/or erosion of paid up capital

• The company must inform Labuan FSA of any changes in its shareholding structure and/or any erosion of paid up capital

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Operational requirements

• The company must maintain a registered office in Labuan, and all dealings must be done through this registered office in Labuan

• All transactions must be in currencies other than the Malaysian Ringgit, except as permitted by the relevant legislation and authorities

• The company must appoint an auditor

• The company must notify Labuan FSA of any amendments or alteration to any information in its constituent documents

All Labuan money brokers are prohibited from dealing with Malaysian residents other than authorised dealers as specified under Section 4 of the Malaysian Exchange Control Act 1953.

Application Requirements All applications for the setting up of a money broking entity should be directed to the Director General, Labuan FSA and should include, amongst others the following:

• An undertaking letter from the head office/parent company to undertake any liability arising from the operations of its branch or subsidiary in Labuan

• The controller or director or chief executive officer and the directors of the board of the applicant company must be fit and proper persons. Prior written approval of Labuan FSA must be obtained for the appointment of such said persons

• A signed declaration by directors and senior staff of the applicant on confidentiality and secrecy

• A descriptor of the nature of business of the applicant

• A business plan detailing the operations and strategies of the applicant with regard to its Labuan entity

• Audited financial statements of the applicant for the last two years, if applicable, and

• Any other information that is relevant to the application

Annual FeeAll licensees are required to pay Labuan FSA an annual yearly licence fee of MYR5,000 on or before 15 January.

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BORNEO SUN BEARS (HELARCTOS MALAYANUS)Averaging 4 feet in length, these tiny bears are extremely partial to beetle larvae! A victim of its own success, it is highly sought after in the Asian medicinal trade and widespread poaching poses a major threat to this already vulnerable species.

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Service Providers

All Labuan corporate service providers, management companies or registration agents as they are known in other jurisdictions, are governed by provisions contained in Part V of the Labuan Financial Services and Securities Act 2010.

Transactions conducted by all Labuan service providers must be in currencies other than theMalaysian Ringgit, except as permitted by the relevant legislation and authorities.

TRUST COMPANIESTrust company refers to a company registered under the Labuan Companies Act 1990 and satisfies requirements detailed in Section 62 of the Labuan Financial Services and Securities Act 2010.

The role of Labuan trust companies is to incorporate, register, manage and conduct secretarial duties for entities registered under the Labuan Companies Act 1990, Labuan Limited Partnerships and Limited Liability Partnerships Act 2010, Labuan Foundations Act 2010 and Labuan Trust Act 1996.

Hence, a Labuan Trust Company must itself be registered by an existing Labuan trust company or a Labuan Managed Trust Company.

In addition a Labuan trust company may provide:

• the registered office for a Labuan company or entity

• lodgement services of any documents or reports required under Labuan laws

• management and accounting services to a Labuan company or entity

A Labuan trust company may also act as manager to a managed trust company or a private trust company.

It is a requirement that a trust company establishes a functional office in Labuan and have at least two approved trust officers, one of whom is domiciled in Labuan. The trust officers are employees of the trust company who have met Labuan FSA’s requirements of a trust officer, which includes fulfilling the fit and proper person criteria and passing an exam set by Labuan FSA.

Other activities that a trust company may carry out include being a trustee, agent, executor or administrator pursuant to the objectives of the trust company.

A company that seeks to register itself as a trust company must itself be a company incorporated or registered under the Labuan Companies Act 1990. The name of the company shall include the word ‘Trust’, ‘Trustee’ or other such words as approved by the Registrar.

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Application Requirements All applications for the setting up of a trust company should be directed to the Director General, Labuan FSA and should include, amongst others the following:

In addition, the company must comply with the following requirements:

• Form TL – Application for the licence to carry on Labuan Trust Company Business

• A Business plan which includes: a) Types of products to be offered and the company’s target market b) Its management team and organisational chart c) Three years financial projection (properly drawn up income statement and balance

sheet quoted in a foreign currency)

• Full disclosure of shareholdings of the company, including the submission of a corporate profile (if the trust company is a subsidiary or associate of another corporation) or a detailed background of an individual shareholder

• Working capital or working fund of at least MYR150,000 or its equivalent in any foreign currency

• A professional indemnity insurance policy with a coverage of not less than MYR 1 million or its equivalent in any foreign currency

• A letter of guarantee or undertaking to Labuan FSA for the liability of the said trust company In addition, the intended managed trust company should ensure that the directors and officers responsible for it are fit and proper persons pursuant to Section 4 of the Labuan Financial Services and Securities Act 2010 and Guidelines on Fit and Proper Persons as issued by Labuan FSA.

Operational RequirementsEach Labuan trust company must, amongst other requirements must ensure it:

• Establishes a fully operational office in Labuan with separate telephone and facsimile lines, as well as its own letterhead and stationery

• Appoints at least two trust officers approved by Labuan FSA, one of whom must be based in Labuan

• Keeps all assets and other valuables received on behalf of clients and in its capacity as trustee duly separated from its own assets and liabilities

• Complies with Guidelines on Anti Money Laundering and Counter Financing of Terrorism

• Informs Labuan FSA of any change in its place of business and trust officers

• Obtains written consent from Labuan FSA prior to any making any changes to its shareholding and/or directorship

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In addition, should a trust company act as a trustee on behalf of an Islamic trust it must appoint a qualified person as a Shariah Advisor or consult a qualified person to ensure the trust adheres to Shariah principles.

Annual FeeAll trust companies are required to pay an annual yearly licence fee of MYR8000 on or before 15 January.

MANAGED TRUST COMPANIESA managed trust company, is a trust company which in turn appoints another Labuan Trust Company to manage its operations and is not required to establish its own physical office in Labuan as provided in the Labuan Financial Services and Securities Act 2010.

Instead, every managed trust company shall appoint a full fledged Labuan trust company as its Labuan managed trust manager to give effect to its trust company business.

Section 71 and 72 of Labuan Financial Services and Securities Act 2010 state provisions for the set up of a managed trust company and states that all managed trust companies must be neither a Labuan Company or a foreign company licensed, registered or approved to carry out trust company business in other jurisdiction.

Managed trust companies may provide services to their clients, similar to fully fledged Labuan trust companies except it may not act as a manager to another managed trust company and it also is barred from being an agent to a Private Trust Company.

Application RequirementsAll applications for the setting up of a managed trust company should be directed to the Director General, Labuan FSA and should include, amongst others the following:

• A duly completed Form TL – Application for Licence to Carry on the business of a Labuan managed trust company

• A detailed management agreement between the intended Managed Trust Company and the Labuan based trust company which will manage the business on its behalf

• A business plan which includes, amongst others: a) types of product and services offered b) target market, specifying geographical spread and industry focus c) the management team d) three years financial projection (properly drawn up income statement and balance sheet

quoted in a foreign currency)

• A a letter of good standing or its equivalent from the supervisory Authority of its home country

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In addition, the intended managed trust company should ensure that the directors and officers responsible for it are fit and proper persons pursuant to Section 4 of the Labuan Financial Services and Securities Act 2010 and Guidelines on Fit and Proper Persons as issued by Labuan FSA.

Should a managed trust company act as a trustee on behalf of an Islamic trust it must appoint a qualified person as a Shariah Advisor or consult a qualified person to ensure the trust adheres to Shariah principles.

In addition there are other operational requirements to adhere to including, but not limited to:

• Appointing at least one trust officer approved by Labuan FSA, who may be the employee of the appointed Labuan based trust company which has been appointed to manage its trust business

• Keeping all assets and other valuables received on behalf of clients and in its capacity as trustee duly separated from its own assets and liabilities

• Ensuring that all its books and records are kept and made available for inspection in Labuan

• Notifying Labuan FSA of any changes to its managed trust company manager within seven working days from the effective date of the change specified

• Ensuring it has its own letterhead and stationery

INSURANCE AND UNDERWRITING MANAGERA Labuan insurance manager means a person who is licensed to provide management or administration services related to Labuan insurance business and a Labuan underwriting manager means a person, not being a bona fide employee, licensed to provide underwriting services, including the administration of the business, to one or more Labuan insurers.

All Labuan Insurance Managers are governed by the Labuan Financial Services and Securities Act 2010, specifically provisions in Sections 102 to 116.

Key requirements to set up as a Labuan Insurance Manager:

• Establish a management office in Labuan, however a marketing office in Kuala Lumpur may be set up to facilitate meetings and business dealing with clients

• The number of staff in the marketing office must balance the number of staff in the Management Office in Labuan

• The person in control, director and principal officer must be fit and proper persons as described by Guidelines issued by Labuan FSA

• Capitalisation/working funds required for an insurance and underwriting manager is MYR300,000

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• The applicant must submit a banker’s certificate as evidence that working funds are maintained in the account of the applicant, with a bank in Labuan; however, the applicant may apply for flexibility to pay up less than 100% of the working funds required, subject to the provision of adequate guarantee, acceptable to Labuan FSA, for the difference in amount


• Labuan insurance and underwriting managers are required to submit within 30 days from the close of its financial year, a list of all Labuan insurers for whom such licensed Labuan insurance manager provides administration services or licensed Labuan underwriting manager provides underwriting services


Application Requirements All applications for the setting up of a insurance manager or underwriting manager should be directed to the Director General, Labuan FSA and should include the following:

• A business plan for the proposed company

• Authenticated copy of the proposed Memorandum of Association and Article of Association of the applicant company

• Certified extracts of the resolutions of the Board and the general meeting, if any, authorising the applicant to apply for a licence

• A copy of the applicant’s audited annual accounts for the preceding three years

• Applicant’s corporate profile, which includes: a) The name, place and date of establishment of the applicant b) The names, addresses, qualifications and experience of the directors and officers

responsible for the overall management of the affairs of the applicant, and c) The name and address of each member who holds 10% or more of the voting shares of

the applicant

• Declaration by the applicant on probity of its directors and officers who are responsible for the management of the Labuan insurance entity

Annual FeesAll licensees are required to pay Labuan FSA an annual licence fees on or before 15 January each year, the following sum:

Underwriting Manager MYR10,000Insurance Manager MYR10,000

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COMPANY MANAGEMENT COMPANY Company management business in Labuan means the provision of treasury processing services and such other services to persons as may be permitted by Labuan FSA. The permissible activities of the company management firms are described as follows:

• Treasury processing activities, comprising back and middle office processing functions including processing and confirming deals, preparing accounting records and reports, maintaining registers and files and custodial services

• Islamic advisory services and processing function, including launching, administering, and backroom processing of collective investment schemes; consultancy, advisory and support services; and developing Islamic trusts

The governing legislation for company management in Labuan is the Labuan Financial Services and Securities Act 2010, specifically Part VIII, Sections 129 to 132.

Application RequirementsAn application can be considered from a company meeting the following criteria:

• A trust company licensed under the Labuan Financial Services and Securities Act 2010

• A firm engaging in company management activities licensed by the regulatory authority in the country of origin, if applicable

• A Labuan company incorporated under the Labuan Companies Act 1990 run by personnel with the necessary expertise and skills

• The company can demonstrate that it has undertaken similar activities in other financial centres

• The company has no adverse report from any reliable sources

• The company has a proven performance record with consistent returns on equity and assets

Licensing Requirements

• The applicant company must have a minimum authorised capital of MYR500,000 and paid up of MYR100,000 (unimpaired by losses) or its equivalent in any foreign currency

• The applicant company must produce a guarantee and provide a security deposit of MYR50,000 with Labuan FSA to undertake any liability arising from its operations

• The Board of Directors and/or Chief Executive Officer must consist of persons deemed fit and proper, and prior written approval from Labuan FSA is required before such appointments can be made. A signed declaration on secrecy is also required

• The applicant company must have a business plan, which includes plans to promote Labuan IBFC

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• The applicant company must inform Labuan FSA of any changes in the shareholding structure or capital and/or any erosion of paid-up capital

• An applicant company must satisfy Labuan FSA that it has expertise and experience to undertake Islamic company management business

• An applicant company providing Islamic company management services must engage the services of a Shariah Advisory Panel comprising reputable Shariah law experts

Operational RequirementsAmong the operational requirements are:

• The applicant company must maintain a registered office in Labuan, through which all dealings must be done

• Transactions must be in currencies other than the Malaysian Ringgit, except as permitted by the relevant legislation and authorities

• The applicant company shall provide company management services to Labuan companies and non-residents only

• The applicant company shall appoint an approved auditor

• The applicant company must notify Labuan FSA of any amendment or alteration to any of its constituent document, and

• The applicant company must be active in its performance judged from the number of deals, projects, etc. arranged in each year

Annual FeeAll licensees are required to pay Labuan FSA an annual licence fee of MYR5000 on or before 15 January each year.

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Contact Information

LABUAN IBFC INCORPORATED SDN BHD

SUITE 3A-2, LEVEL 2 BLOCK 3A, PLAZA SENTRAL JALAN STESEN SENTRALKL SENTRAL50470 KUALA LUMPUR, MALAYSIATEL +6 03 2773 8977FAX +6 03 2780 2077

HONG KONG REPRESENTATIVE OFFICE

SUITE 1102, LEVEL 11MALAYSIA BUIDLING50 GLOUCESTER ROADHONG KONGTEL +8 52 2527 2318FAX +8 52 2520 2938EMAIL [email protected]

LABUAN FINANCIAL SERVICES AUTHORITY

17TH FLOOR, MAIN OFFICE TOWERFINANCIAL PARK COMPLEXJALAN MERDEKA87000 LABUAN, MALAYSIA TEL +6 087 591 200FAX +6 087 428 200EMAIL [email protected]

ASSOCIATION OF LABUAN TRUST COMPANIES

C/O TIARA LABUANJALAN TANJUNG BATU87000 LABUAN, MALAYSIATEL +6 087 416 518FAX +6 087 417 655EMAIL [email protected]

LABUAN INTERNATIONAL INSURANCE ASSOCIATIONC/O BRIGHTON MANAGEMENT LIMITEDBRIGHTON PLACE, GROUND FLOORNO: U0215, JALAN BAHASAP.O. BOX 8043187014 LABUAN, MALAYSIATEL +6 087 426 489FAX +6 087 426 652EMAIL [email protected]

ASSOCIATION OF LABUAN BANKS

LEVEL 8(D), MAIN OFFICE TOWERFINANCIAL PARK COMPLEX JALAN MERDEKA 87000 LABUAN, MALAYSIA TEL +6 087 452 778FAX +6 087 452 779EMAIL [email protected] www.alb-labuan.com

LABUAN INVESTMENT BANKS GROUP

C/O AMANAHRAYA INVESTMENT BANK LTD KUALA LUMPUR MARKETING OFFICE LEVEL 8, WISMA AMANAHRAYA NO. 2, JALAN AMPANG 50508 KUALA LUMPUR, MALAYSIA TEL +6 03 2054 7251FAX +6 03 2072 2120EMAIL [email protected]

LABUAN INTERNATIONAL FINANCIAL EXCHANGE

UNIT LEVEL 7(B), MAIN OFFICE TOWERFINANCIAL PARK COMPLEX JALAN MERDEKA87000 LABUAN, MALAYSIATEL +6 087 451 359FAX +6 087 451 379EMAIL [email protected]

SOCIETY OF TRUST AND ESTATE PRACTITIONERS

C/O TMF LABUAN PO BOX 80148BRUMBY HOUSE, JALAN BAHASA87011 LABUAN, MALAYSIATEL +6 087 423 828FAX +6 087 417 242EMAIL [email protected]

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Labuan IBFC Business Guide2

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