A Labuan underwriting manager is defined as a person who is licensed to provide underwriting services, including the administration of the business, to one or more Labuan insurers.

Tax Advantages for A Labuan Underwriting Manager

  • 3% corporate tax on audited net profit
  • NO Withholding Tax
  • NO Stamp Duty / Import Duty / Sales Tax
  • NO Capital Gain Tax and Inheritance Tax
  • Ability to access to more than 70 Malaysia Tax Treaty partners
  • 50% Personal Tax Exempt for expatriate professionals
  • 100% TAX Exemption for Director’s Fees received by Expatriate Directors
  • NO TAX on Profit distribution to Shareholders via Dividends

Licensing and Operational Requirements for A Labuan Underwriting Manager

  1. Maintain minimum paid-up capital or working funds of MYR 300,000 or its equivalent in any foreign currency.
  2. Must be a member of the Labuan International Insurance Association.
  3. Must provide a letter of guarantee or undertaking from the parent company to Labuan FSA (if applicable).
  4. For operations:
    1. establish an operational office in Labuan, managed by a management team that has adequate knowledge and expertise in the insurance business; OR
    2. appoint a licensed Labuan Underwriting Manager
  5. Appointment of any person in control, director or principal officer (PO) must obtain prior approval from Labuan FSA. However, Labuan underwriting managers that are established as a branch are not required to obtain approval on the appointment of their directors.
  6. The person in control, director and PO must be fit and proper persons and shall not be subjected to any adverse reports from any reliable sources.

Application Timeframe

  1. Approximately 30 to 60 days subject to further information and supporting documents required by Labuan FSA during the approval process
  2. Interviews / Meetings with the key personnel may be requested by the Labuan FSA to understand or clarify certain processes

STEPS to Apply for Labuan Underwriting Manager License

Process flow for Obtaining A Labuan Underwriting Manager Licence | QX Trust - Offshore Labuan

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QX TRUST license application service level for Labuan Underwriting Manager license include:  
  • Consultation on client's eligibility and application procedures
  • Feasibility study write-up based on client's profile
  • Due Diligence, Profiling and Guidance on documents preparation
  • Construct exclusive Business Plan to meet client's business objectives
  • Preparation of Financial Forecast, KYC, Operation and AML/CFT Manuals, Client Agreements etc
  • Submission and supervision of application process until approval
  • Act as liaison and key contact person for both client and Labuan FSA on all correspondences, meetings and /or interviews (if any)