Funds License
In Labuan

Company Structure :

• 1 Director With Experience in Fund Management

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

Capital Requirement

The Labuan fund manager must maintain a paid-up capital unimpaired by losses of at least RM300,000 equivalent in any foreign currency throughout its operations. Where the Labuan fund manager has Asset Under Management (AUM) of more than RM150 million, it must maintain additional capital equivalent to 0.2% of the AUM in excess of RM150 million.

Permitted Activities under fund manager license :

• Management Services

  • Acting or offering to act as portfolio manager on behalf of the clients for a portfolio of securities including funds
  • Managing activities in the acquisition or disposal of a portfolio of securities including funds
  • Managing clients’ discretionary accounts including Labuan private funds

• Investment Advices

  • Conducting securities analysis and making investment recommendations based on client’s investment objectives and financial situation.
  • 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.

• Administrative Services

  •  Making submissions on behalf of clients to Labuan FSA in respect of securities including any other reporting requirements.
  • Issuing any documents which are deemed to be a prospectus under the LFSSA/LIFSSA and the LCA.

• 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 commensurated with the adequacy of its financial resource. Hence, the Labuan fund manager shall ensure that its risk management plan also 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 at least on a yearly basis in line with its business plan.

OPERATIONAL REQUIREMENTS :

• The Labuan fund manager must maintain a paid-up capital unimpaired by losses of at least RM300,000 equivalent in any foreign currency throughout its operations. Where the Labuan fund manager has Asset Under Management (AUM) of more than RM150 million, it must maintain additional capital equivalent to 0.2% of the AUM in excess of RM150 million.
• Maintain a professional indemnity insurance policy with coverage of not less than RM1 million or its equivalent in any foreign currency throughout its operations.
• Maintain a registered office in Labuan and ensure that the business must be carried on in, from or through Labuan. For Labuan fund manager that plans to establish a marketing office at Kuala Lumpur and/or Iskandar Malaysia, the Guidelines for Establishment of Marketing Office in Kuala Lumpur and Iskandar Malaysia issued by Labuan FSA should be observed.
• Ensure that the shareholder(s), director(s), principal officer, representative including any other relevant person meet the requirement of the Guidelines on Fit and Proper Person issued by Labuan FSA.
• Establish an adequate internal policies and procedures for its operations, compliances, 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.
• Appointment of qualified person6 to its internal Shariah advisory board for Labuan fund manager undertaking Islamic fund management activities is required to ensure that its management and operation are in compliance with Shariah principles. In this regard, the Directive on Islamic financial business in Labuan IBFC shall also be observed.

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