Labuan Fund Manager is a person, for valuable consideration, provides management services which may include investment advice or administrative services in respect of securities for the purposes of investment, including dealing in securities. For a Labuan Fund Manager undertaking Islamic fund management activities, its operation shall also comply with Shariah principles.

Labuan Fund Manager License Permitted Activities | QX Trust | Offshore Labuan Consultants


  • 3% corporate tax on net audited profits
  • 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

Note: All activities carried out by a licensed Labuan Fund Management Company are deemed as Trading activities subject to net profit corporate tax of 3% as per audited account. There will be no tax on the loss incurred, auditing of the financial account is still required.

A. Management Services

  • Acting or offering to act as the portfolio manager on behalf of the clients for a portfolio of securities including funds and any foreign fund that has obtained approval from its home regulator of an IOSCO member country
  • Managing activities in the acquisition or disposal of a portfolio of securities including funds (including any foreign fund that has obtained approval from its home regulator of an IOSCO member country)
  • Managing clients’ discretionary accounts including Labuan Mutual Funds

B. Investment Advisory

  • Conducting securities analysis and making investment recommendations based on client’s investment objectives and financial condition
  • Providing advice concerning securities including the issuance or promulgation of research report and analysis
  • Providing consultancy and advisory services relating to corporate finance and financial planning matters for corporate clients

C. Administrative Services

Making submissions on behalf of clients to Labuan FSA in respect of securities including any other reporting requirements including issuing any documents which are deemed to be a prospectus.

D. Dealing in Securities

  • Quoting two-way prices and dealing in securities
  • Arranging for the sale or purchase of securities including that are not listed on a stock market of a stock exchange, issued by, belonging to or on behalf of clients
  • Underwriting of securities and placement out of such underwritten securities to be commensurate with the adequacy of its financial resource
  • Other dealing in securities as permitted by Labuan FSA

Criteria to Apply for A Labuan Fund Manager License

  1. An individual who holds a relevant degree or professional qualification to carry out fund management activities. Labuan FSA may also consider an applicant with a minimum Diploma qualification with 3 years relevant experiences in the capital market or direct experiences in fund management activities;
  2. An approved fund manager or any provider of such services from a country or jurisdiction who is a member of the International Organization of Securities Commission (IOSCO);


A person who does not fulfill paragraph (1) and (2) above may also be considered, provided that the fund management activities are run and managed by suitably qualified and experienced individuals.

Important Documents Required for Labuan Fund Manager License Application

  1. A three (3) years Business Plan covering the business objectives, types of services to be provided, target market, financial forecast, revenue projections and manpower, including the equity structure of the company in regard to the percentage of shareholding and operational strategies
  2. Resume of all keys personnel with education certificates
  3. Two (2) Reference Letters for each key personnel and relevant documents to validate profile is fit and proper
  4. Personal financial statement to evidence the existence of adequate financial resources for the sustainability of the business
  5. Must have at least two (2) directors in the Company

Note: subject to the merit of each application, additional information and documents may be requested by Labuan FSA to facilitate the processing of the application

Regulatory and Operational Requirements for Labuan Fund Management Company

  1. To maintain a paid-up capital unimpaired by losses of at least MYR 300,000 or its equivalent in any foreign currency throughout its operations. Labuan fund manager with Asset Under Management (AUM) of more than MYR 150 million, must maintain additional capital equivalent to 0.2% of the AUM in excess of MYR 150 million
  2. To maintain a professional indemnity insurance policy with coverage of not less than MYR 1 million or its equivalent in any foreign currency throughout its operations
  3. To maintain a registered office in Labuan and ensure that the business must be carried on in, from or through Labuan. You may establish a marketing office at Kuala Lumpur and/or Iskandar Malaysia
  4. To ensure the compliance of the duties of a Labuan fund manager including segregation of client’s assets
  5. To have at least two (2) directors and key personnel that meet the fit and proper requirements
  6. To establish adequate internal policies and procedures for its operations, compliance, internal controls, corporate governance and risk management, including its business continuity plan. These have to be regularly reviewed to ensure that they remain appropriate, relevant and prudent
  7. To ensure proper policies and procedures are in place to ensure a sound compliance framework which safeguards clients’ interests
  8. To appoint an approved auditor to carry out an annual audit of its accounts in respect of the business operations. The audited report is to be submitted within 6 months after the closure of the financial year
  9. To conduct its business in any foreign currency including Malaysian Ringgit.
  10. To ensure its risk management plan clearly sets out the extent of financial requirements to sustain its operational business based on the risk appetite or tolerance levels in relation to the fund management strategies. This has to be reviewed on a yearly basis in line with its business plan
  11. To obtain prior approval from Labuan FSA on changes of its identity, place of business or office in Labuan or outside Labuan, ownership and shareholding of the fund manager
  12. To notify Labuan FSA in writing any amendment or alteration to any of its constituent documents, or business plan within thirty (30) days of the changes being effected
  13. To take reasonable care to organise and control its affairs responsibly and effectively by having an adequate risk management and supervisory system in place
  14. To establish proper compliance function to ensure its business complies with the relevant directive, guidelines and reporting requirements issued by Labuan FSA from time to time
  15. To ensure compliance with the Anti-Money Laundering and Anti-Terrorism Financing Act 2001 and Guidelines on Anti-Money Laundering and Counter Financing of Terrorism relevant to Labuan IBFC

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 A Labuan Fund Manager License

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

QX TRUST, your one-stop Trust Company in Labuan!

QX TRUST license application service level for Labuan Fund 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 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)