LABUAN
Labuan International
Business & Financial Centre
Labuan IBFC is the preferred international business and financial centre in Asia
It offers global investors and businesses the benefits of being in a well-regulated and supervised jurisdiction, which adheres to international standards of compliance in tax transparency. Home to regional and global capital market service providers such as fund managers, fund administrators, custodians and financial advisors, Labuan IBFC provides a conducive ecosystem for international investments and fund setups in the centre.
Asia's Premier International Financial Hub
Advantages of Labuan
Well-Regulated Regime
Regulated and supervised under a robust and internationally recognised legal framework. The Labuan IBFC fund regime is well-supported by a robust, internationally recognised yet business-friendly legal framework. Labuan IBFC operates within clear and comprehensive legal provisions and industry guidelines, enforced by its single regulator, Labuan Financial Services Authority (Labuan FSA), which in turn is a statutory body under the purview of the Ministry of Finance, Malaysia. Labuan FSA is a member of the International Organization of Securities Commissions (IOSCO) and the jurisdiction itself adheres to international standards and best practices.
Neutral Jurisdiction
A tax-neutral jurisdiction that is cost-efficient for substance creation; provides legal neutrality in dispute settlement; is currency neutral as businesses are able to deal in any currency. We provide fiscal neutrality and certainty in a currency-neutral operating environment. Labuan IBFC boasts a cost-efficient environment making it an ideal location for substance creation for global fund managers to both structure their funds and from which fund management activties may be carried out.
No Exchange or Capital Controls
A Labuan entity is deemed as a non-resident under Malaysian foreign exchange administration rules and therefore is not subject to exchange or capital controls.
Variety of Legal Structures
Various options of corporate structures available to suit different purposes e.g multicurrency investments, different risk profiles, etc. The availability of various fund vehicles range from cost-efficient flexible private equity funds to sophisticated passportable international funds. Labuan funds can be managed by prominent fund managers globally, with investment and investment-related decisions made in Labuan.
Use Cases for Investments
Holding Assets & Capital
Labuan is used as a parent company / investment holding company to hold foreign-currency denominated funds to hedge against fluctuations. Capital is deployed from Labuan into ASEAN and beyond when an investment target is identified, such investments can be in the form of: (1) direct investments into the start-ups, or (2) feeder investments into other funds.
Labuan Investment Holding Company
A Labuan IHC is typically established for the purpose of investing in other companies and securities such as stocks, bonds, and real estate. These companies are not engaged in any operational activities but rather hold investments as a passive income source.
Protected Cell Companies (PCC)
Investment holding for multiple purposes / categorisation: (1) Sector focused e.g. edtech vs fintech vs regtech. (2) Country focused e.g. ASEAN vs rest of world. (3) Investment type focused e.g. start ups vs scale ups vs feeder funds
Labuan Licensed Entities
In order to apply for a licence to conduct businesses in certain countries, the regulator of that country require an applicant to demonstrate its track record, including the requirement that the applicant is licensed in its home jurisdiction. Labuan’s licencing regime proves as a useful test case for tech companies to test its product with the users, and to prove to other regulators that the product has product-market fit.