About the country
Labuan, officially the Federal Territory of Labuan, is a federal territory of Malaysia. It is made up of the eponymous Labuan Island and six smaller islands, and is located off the coast of the state of Sabah in East Malaysia.
About Licensing Body (International Business and Financial Centre):
LIBFC (Labuan International Business and Financial Centre) is one of the regulatory bodies that are responsible for issuing, reviewing and regulating the FX companies licensed by these authorities. The LIBFC licenses are only issued to those financial companies which look forward to engage in Forex activity, but only if they meet certain criteria set by the regulator, including capital adequacy, proper tests and mandatory physical office in Labuan.
Tax Rate System:
Corporate tax profit is 3%
Individual Tax starts from 20%
Our Process for Labuan Forex Company Formation
- Gather and prepare all the documents, including due diligence reports
- Prepare initial corporate documents and statutory declarations by the Director/Shareholder to the LFSA
- Preparation the AML procedures and custom tailored business plan
- Submission of the report and all corporate documents to the LFSA to start the process of application
- Account opening in a local Bank for satisfying minimum paid up capital requirements which include the preparation and submission of all the bank forms, corporate documents and due diligence documents. Visit of the Director/Shareholder to the Bank will be mandatory.
- Ad-hoc support and provision of minor documents required during the process
- To arrange a meeting with the Director/Shareholder with the LFSA
- To assist with transfer of funds at a Local Bank in order to satisfy capital requirement for the Money Broking License
- Receipt of license from the LFSA and delivery of documents to the client
From the Client
- Notarized passport copy (Should be notarized in English – 3 copies)
- Last 3 months utility bill (Should be notarized in English – 2 copies with original)
- Director/Shareholder’s Bank reference letter
- Reference letter from CA or CPA
- Lawyer’s reference letter)
- The copy of educational degree certificate (Should be in English)
- Director/Shareholder’s CV
- Bank balance confirmation for a shareholder with 75% of shares – letter stating a minimum balance of not less than MYR 350000 (USD approx. 100000) (Kindly note if two shareholders are there with 50/50 share holding, then each shareholder should provide the bank statement for the balance confirmation).
Related to the process
- Application Form by LFSA
- Statutory Declarations
- Bank Application Forms
- AML (Anti Money Laundering) Procedures
- Business Plan
- 3 -years financial projection
- sheet with forecast description
1.trademark applications, IP Agreements and Domain Name Registration;
2.website preparation as well as the preparation or review of any other marketing material.
3.assisting with the purchase and negotiations for an MT4 server or any other trading platform required
4.assessment, review or testing of the entity’s proposed trading platform;
5.assisting with the implementation of Know Your Customer (“KYC”) processes or other compliance procedures.