LABUAN SECURITIES LICENSE

A Labuan securities license is meant for any individual who is offering valuable advice in the field of investment or administrative services about securities for investment and dealing in securities. For businesses to get the Labuan Islamic Securities license, their operations shall adhere to Shariah principles.

Labuan Securities License -Structure Explained | QX Trust | Offshore Labuan Consultants

Advantages of Having a Labuan Securities License

  • Businesses have to pay only 3% corporate tax on audited consolidated net profits
  • There will be NO Withholding Tax
  • You don’t need to pay Stamp Duty / Import Duty / Sales Tax
  • There will be NO Capital Gain and Inheritance Tax
  • The license holder will be enabled to access more than 70 Malaysia Tax Treaty partners
  • The expatriate professionals can enjoy 50% Personal Tax Exemption
  • There will be NO Tax on Director’s Fees received by Expatriate Directors
  • The Profit distribution to Shareholders via Dividends is also exempted from tax

Note: All the activities carried out by a Labuan Securities Company with a license are considered as Trading activities after net profit corporate tax of 3% as per the inspected account. However, the auditing of the financial statement is still necessary.

Labuan Securities License Permitted Activities

A. Investment Advisory

  • Responsible for Conducting securities analysis and providinginvestment recommendations based on the objective of clients and their monetary scenario
  • Also includes advice regardingsecurities together with the provision or promulgation of research report and analysis
  • License holding company can provide consultancy and advisory services related to corporate finance and budget planning for corporate clients

B. Administrative Services

The Labuan securities license holding company can make submissions on behalf of clients to Labuan FSA regarding securities and any other reporting requirements that include issuing the documents, which are a lock to be a prospectus.

C. Dealing in Securities

  • The securities license holder can quote two-way price
  • Will be responsible for Arranging the necessities for the sale or purchase of securities that square measure even ex-directory on the safety of a stock market, issued by, belongings to or on behalf of purchaser
  • Sponsoring of securities and placement out of such underwritten securities to be commensurate with the adequacy of its financial resource
  • Dealing of securities apart from this as permitted by Labuan FSA regularly

Qualifying Eligibility for Labuan Securities License

  1. A person that holds a relevant degree or skilled qualification to carry out fund management activities is eligible. Labuan FSA may additionally contemplate AN applier with a minimum diploma holder of 3years of relevant experience (3) years relevant expertise in capital market or direct knowledge in fund management activities;
  2. An Associate as an approved fund manager or any supplier of such services from a rustic or jurisdiction who could be a member of the International Organization of Securities Commission (IOSCO);

OR

3.A person who does not fulfil paragraph (1) and (2) may also be eligible, provided that the fund management activities are run and managed by well-qualified and experienced individuals.

Important Documents Required for Labuan Securities License Application

  1. Three years Business setup covering the business objectives, styles of services to be provided, target market, budget forecast, revenue projections, and workforce, as well as the equity structure of the corporate regarding the proportion of the property and operational strategies
  2. Resume of all keys personnel with education certificates
  3. Two Reference Letters for every key personnel and relevant documents to validate profile is work and correct
  4. Detailed Resume to prove the existence of adequate money resources with verification of educational certificates
  5. Should have a minimum of Two administrators within the company

Note: Subject to the benefit of every application, further data and documents is also requested by Labuan FSA to facilitate the application process

Regulatory and Operational requirements for Labuan securities license

  1. To maintain an expert indemnity insurance policy with coverage of a minimum of MYR one million or its equivalent in any foreign currency throughout its operation
  2. Must maintain an operational workplace in Labuan, and every transaction should be done to, through, and from Labuan. However, you could establish a selling workplace in the Malaysian capital and Iskandar Johor, Malaysia
  3. To ensure compliance and duties of a Labuan fund manager is in situ as well as segregation of client’s assets
  4. To establish adequate internal policies and procedures for its operations, compliance, internal controls, company governance, and risk management, as well as its business continuity arrangement. These got to be often reviewed to confirm they continue to be applicable, relevant and prudent
  5. To ensure correct policies and procedures square measure in situ to reinforce a sound compliance framework safeguarding clients' interests
  6. To appoint an approved auditor to perform an annual audit of accounts and to be submitted inside 6 months, every financial year
  7. To conduct business in any foreign currencies as well as Malaysian monetary unit (MYR)
  8. To ensure its risk management arrangement sets out the extent of economic necessities to sustain its operational business supported the danger of appetency or tolerance levels concerning the fund management methods. This needs to be reviewed every year in line with its business arrange
  9. To obtain previous approval from Labuan FSA on changes of its identity, place of business or workplace in Labuan or outside Labuan, ownership, and holding of the fund manager
  10. To send Labuan FSA in writing, related to any amendments or alterations to any of its constituent documents, or business arrange inside thirty (30) days of the changes place into result
  11. To take ordinary care to organise  management its affairs responsibly and effectively by having adequate risk management and a superior system in situ To establish correct compliance to confirm business complies with the relevant directives, tips and news necessities issued by Labuan FSA from time to time
  12. To ensure compliance with the Anti-Money Laundering and Anti-Terrorism funding Act 2001 and tips on Anti-Money lavation and Counter funding of coercion relevant to Labuan IBFC
  13. To establish proper procedures to ensure the business complies with the relevant directives, guidelines and reporting requirements issued by Labuan FSA from time to time
  14. 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. Around thirty to sixty days, subject to additional data and supporting documents needed by Labuan FSA throughout the approval process
  2. The Labuan FSA could also request interviews/conferences with the critical personnel to know or clarify the processes

STEPS to Apply for A Labuan Securities License

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

QX TRUST, your one-stop Financial Offshore Company in Labuan!

QX TRUST's services for obtaining a Labuan Securities 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)