Brokerage License
In Labuan

Company Structure :

• 2 Directors With Experience in Securities Dealing/Brokerage 

Taxation :

• Standard corporate tax rate of 3% on audited profits
• No stamp duty & GST
• No tax on dividends to shareholders

Accounting & Auditing:

• Audit should be done from LFSA Approved Auditor
• The Company will be required to fil audited financial statements and tax return annually
• Accounting records should be kept at the local offices of the administrator.

Registered Agent & Office – Required

Company Secretary- Required

PI Insurance Cover- Required

Physical Office in Labuan- Required

Local Employees in Labuan- Required

If you have any questions, please feel free to contact us or write to support@startingoffshore.com

Money broking business is defined as the business of arranging transactions between buyers and sellers in the money or foreign exchange markets as an intermediary in consideration for brokerage fees paid or to be paid. This does not include the buying or selling of Ringgit or foreign currencies as a principal in such markets.

Capital Requirement – 125,000 USD ( 500,000 MYR )

Permitted Activities under money broking license :

• bring together the counterparties on mutually acceptable terms for the same financial products in money or foreign exchange market to facilitate the conclusion of a transaction
• receive payment for its service in the form of brokerage or commission fees. The fees charged must be adequate and appropriate fees. The fees charged must be adequate and appropriate
• act as a mediator and strictly not permitted to act as a principal

OPERATIONAL REQUIREMENTS :

• Licensed Labuan money broker must maintain a registered
  office in Labuan. All dealings must be done through this registered office in Labuan
• Labuan money broker can only transact business in foreign currency and not deal in ringgit except for the purpose of defraying administrative and statutory expenses
• Labuan money broker is prohibited from dealing with residents other than authorized dealers as specified under section 4 of the Exchange Control Act 1953
• Labuan money broker is required to appoint an auditor; and e. Information: Labuan money broker must notify Labuan FSA of any amendments or alteration to any information in its constituent documents.
• Licensed Labuan money brokers must maintain an operational office in Labuan
• 2 Resident Employee in the local office
• Labuan money brokers can only transact business in foreign currency and not deal in Malaysian Ringgit except for the purpose of defraying administrative and statutory expenses
• Labuan money broking business is intended to serve the institutional investors and high-net worth individuals. In this regard, the Labuan money broker is expected to impose a maximum leverage limit of 100:1 on its clients’ trading transactions that would translate to a minimum of 1% margin deposit to enable the opening of a trade position. For illustration purpose, assuming that the transacted volume is USD100,000, the minimum margin requirement will be equivalent to USD1,000
• Ensure that the counterparties, i.e. principal broker and liquidity provider are regulated by a recognised supervisory or regulatory authority.

If you have any questions, please feel free to contact us or write to support@startingoffshore.com

In order to acquire a license, following steps will be carried out :

• Reviewing & Due Diligence of KYC of Directors & UBO
• Name Check & Reservation at ROC
• Preparing Application Forms, Drafting and Compiling Documentation & Reviewing of Application
• Filing Application with the Labuan Financial Services Authority (LFSA)
• Follow up and liaising with LFSA

If you have any questions, please feel free to contact us or write to support@startingoffshore.com