What Makes Labuan Offshore Banking Unique

Labuan offshore banking offers a wide scope of advantages to its account holder. One of the real benefits that mostly attract several foreign investors is the exception from those substantial duties. Another reason is protection, confidentiality and privacy. The data and points of interest of any associated account and additionally its holders are kept strictly confidential. These are a portion of the reasons why multinational organisations, foreign speculators and rich individuals chose Labuan Offshore Banking as their preferred offshore jurisdiction.

Types of Labuan Banking System

Commercial Banks

Commercial banks are the biggest and most important providers of funds in the bank functioning system. Commercial banks are also sanctioned to deal in foreign exchange and will be the only finance institutions permitted to offer present account facilities.

Offshore Banks

Offshore banking can only be performed in Labuan by an offshore company or a foreign offshore company integrated or registered for that sole and exclusive intent, and by an office, branch or subsidiary of a licensed Malaysian bank.

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Islamic Banking

Labuan is currently attracting more Islamic banking ventures to its jurisdiction. The underlying principles that govern Islamic banking are mutual risk and profit-sharing between parties, the assurance of fairness for all and that those transactions are based on an underlying business activity or asset. These principles are supported by Islamic banking’s core values whereby activities that cultivate entrepreneurship, trade and commerce and bring societal development or benefit is encouraged.

Through the use of various Islamic finance concepts such as ijarah (leasing), mudharabah (profit sharing), musyarakah (partnership), financial institutions have a great deal of flexibility, creativity and choice in the creation of Islamic finance products. Furthermore, by emphasising the need for transactions to be supported by genuine trade or business-related activities, Islamic banking sets a higher standard for investments and promotes greater accountability and risk mitigation.

Benefits of Labuan Offshore Banking

Perpetual and International Access to Your Account

With access to a Labuan offshore banking system, you can get to your account at any time irrespective of your geographical location. Furthermore, you can gain several benefits comprising of low or no expense, safe and protected handing of accounts, ensuring confidentiality and political circumstances, flexibility related access to reserves globally, and improved resource insurance.

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Opening an Account

Labuan offshore banking aids foreign financial investors and businessmen in impactfully opening a Labuan bank account in less time and gain its several benefits for their offshore business.

Financial Planning

Labuan offshore banking offers its account holders offshore opportunities and benefits especially for banking service advantages which are not available in their native region, country, or possibly try to get a secure spot for cash amongst the fragile tendency of political or monetary environment with tend to be under tight scrutiny of the local authority / government

Tax, Security and Assurance

Labuan offshore banking offers countless advantages to the account holders. A section of the principle benefits integrates next to zero tax assessment, more prominent security, guarantee from financial or political disbalances and above all ease to get to stores. Labuan is chosen by the majority of the entrepreneurs or affluent people as it goes under low duty locale and provides different services to foreigners.

No Foreign Control

Labuan offshore banking is not subjected to any foreign controls hence account holders are free to transact their business in any currency of their choice. Due to the offshore banking system, there is also no limitations for international transactions.

Broader Investment Opportunities

While Labuan is an offshore entity, the island is attempting to diversify into a mid-shore role by providing niche areas with high potential growth like leasing, captives, commodity trading and wealth management.

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Labuan Offshore Bank License

The Labuan jurisdiction provides a friendly environment to characterise candidates for the application of a Labuan Banking license with 100% foreign ownership permitting total control of the business through its offshore solutions.

There is a broad range of businesses that one can provide with a Labuan Banking license. The main difference between a Labuan Commercial Bank and a Labuan Investment Bank is that the latter is not permitted to carry out the business of receiving deposits on a current account, deposit account, savings account or any other kind of account.

The Labuan Financial Services Authority (Labuan FSA) is the institution providing banking licenses. When taking into account setting up a commercial banking business in Labuan, QX Trust offers customised and personalised service in guiding all clients at every level of the license application. Most importantly, QX Trust conducts a feasibility study which is beneficial in steering towards a remarkable proposal accompanied by an apt profile and analytics that fulfils and adheres to all of the Authority’s requirements. QX Trust also offers assistance in all legal, compliance and administrative matters, up to the final stages of approval including assistance in setting-up the physical office of the registered financial institution in Labuan. For more related information, connect with us at CONTACT US or consultant@qx-trust.com for a complimentary session!