Types of Businesses in Labuan IBFC
Types of Labuan Companies
- Labuan Trust Company
- A Labuan Trust Company is registered under the Labuan Companies Act 1990 (LCA) and is licensed to carry on a trust company business after approval by LFSA.
Trust Company in Labuan also provides other services such as the provision of registered office address, resident director and secretary and performs all other secretarial functions of a Labuan Company, such as lodgement of statutory documents, application for license, opening of bank accounts and etc.
The trust company may also act as tax agent and book keeping or accounting services to the Labuan Company.
- Definition for Labuan Company
- Labuan Company means a company incorporated under the Labuan Companies Act 1990 and can either carry out either trading or non-trading activities.
Either Malaysian or None Malaysia are permitted to establish Labuan companies and Labuan Company are normally incorporated for business outside of Malaysia as Labuan Company should not transacts in Ringgit and with Malaysia without first getting the approval from LFSA.
- Labuan Offshore Banking
- Offshore Bank means the business of receiving deposits from clients usually in the forms of money or any such other business as approved by LFSA.
- Labuan Investment Banking
- Investment Banking is define as the providing credit facilities, the business of providing consultancy relating to corporate advisory on investment matters dealing in securities, providing services on investments, the business of undertaking foreign exchange transactions or such other business as may be specified by LFSA.
- Labuan Islamic Banking
- Islamic Banking is defined as the business of receiving deposits from clients usually in the forms of money or such other business that as may be approved by LFSA.
- Labuan Islamic Investment Banking
- Islamic investment banking is defined as the business of providing financing facilities in accordance with Islamic and Shariah principles, the business of providing consultancy and corporate advisory services relating to corporate and investment matters dealing in securities, or such other business that may be approved by LFSA.
Please note that Labuan Islamic investment banks are not allowed to accept deposits from client.
Labuan Company Management
- Setting Up Labuan Company Management
- A Company Management business means the provision of back office processing services such as treasury processing and such other services that are permitted and approved by LFSA.
- Labuan General Insurance Business
- General Insurance business is defined as an insurance business which is not life insurance but relates to accident, medical, surgical and hospitalization expenses related insurance.
- Labuan Reinsurance Business
- Labuan reinsurance business is an insurance business whereby the reinsurer assumes a part of the insurance risk and liability under an original contract of insurance of another insurer or reinsurer. A reinsurer can be conducting a general or life reinsurance business.
- Labuan Captive Business
- Captive business is defined as an insurance business where the insured is a related corporation or an associated company of the Labuan insurer or where the insured is any person who the Labuan insurer is authorised by LFSA to provide such business as insurance or reinsurance.
Labuan Insurance Related Business
- Labuan Insurance Related License
- Insurance Related License under Labuan IBFC may carry on business as insurance broker, insurance manager or underwriting manager.
- Labuan Insurance Broker
- Labuan Insurance Broker means a person who is licensed to arrange Labuan insurance business on behalf of prospective or existing policy owners and arrange Labuan reinsurance business on behalf of any insurer seeking reinsurance.
A Labuan insurance broker may also carry on financial planning activities which is approved by LFSA.
- Labuan Insurance Manager
- Labuan insurance manager is defined as a person who is licensed to provide management or administration services related to a Labuan insurance business but does not include underwriting manager.
- Labuan Underwriting Manager
- Labuan underwriting manager is defined as a person who is licensed to provide underwriting services, including the administration of the business, to one or more Labuan insurers.
Labuan Business for Capital Markets
- Labuan Mutual Fund
- Mutual Fund means a company which collects and pools funds for the purpose of collective investment with the aim of spreading risk; and issues interests in a mutual fund which entitles the holder to redeem his investments that is agreed upon by the parties and receives an amount computed by reference to the value of a proportionate interest in the whole or part of the net assets.
It may include an umbrella fund whose interests in a mutual fund or units are split into a number of different funds classes or sub funds classes and whose participants are entitled to exchange rights in one part for rights in another.
Two types of funds are prescribed which are Private Funds and Public Funds.
a. Private Funds
Private funds are mutual funds whose securities are owned or held by not more than 50 investors where the first time investment of each of such investors is not less than RM250,000 or such other sum as may be prescribed by LFSA or the equivalent in any foreign currency;
or any number of investors where the first time investment of each of such investors is not less than RM500,000 or such other sum as may be prescribed by LFSA or the equivalent in any foreign currency.
b. Public Funds
Labuan public funds are those whose securities are offered for subscription to the general public.
- Offer for Securities
- Securities means any investments commonly known or capable of being described as securities which includes: (a) shares, debentures, funds, units or interests in a limited partnership, limited liability partnership, unit trust, foundation, protected cell company or corporation (b) debentures, bonds or notes of or issued by anybody, government, local government or public authority (c) certificates of interest or participation in, temporary or interim certificates for, receipts for, or warrants to subscribe to or purchase any of the investments described under items (a) and (b) above; and (d) securities as defined under the LFSSA.
Debenture includes debenture stocks, bonds, notes and any other evidence of indebtedness of a corporation for borrowed monies, whether or not constituting a charge on the assets of the corporation as defined under Section 2 of the LFSSA.
- Fund Management Company
- Fund Management Company is defined as a person who, 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.
- Securities License
- Securities License as the provision of investment advice or administration services in respect of securities for the purpose of investment; or to deal in securities; or to provide other activity as may be specified and approved by LFSA.
Other Financial Services License
- Labuan Leasing
- Leasing business is defined as the business of letting or sub letting of property on hire for the purpose of the use of such property by the hirer, regardless whether the letting is with or without an option to purchase the property, including charters of ships on bare boat basis.
Labuan leasing property may include plant and machinery, equipment or other chattel attached or to be attached to the earth, and charters of ships means bareboat charters only and does not include the transportation of passengers, cargo by sea or the charter of ships on a voyage or time charter basis.
- Labuan Money Broking Business
- Money broking is defined as the business of arranging transactions between a buyer and a seller in the money markets, where a broker acting as an intermediary for consideration of brokerage fees paid. However, it does not include the buying or selling of foreign currencies by the broker as principal in such markets.
- Global Incentive for Trading
- Global Incentive for trading (GIFT) for Labuan international commodity trading business is the trading of physical and related derivative instruments of petroleum and petroleum-related products including liquefied natural gas (LNG), agriculture products, refined raw materials, chemicals; and base minerals, in any other currency than Malaysian Ringgit to non- Malaysia resident.
- Factoring is defined as the business of acquiring debts to any person or institution at a discount or such other business as approved by Labuan FSA.
- Credit Token
- A credit token is defined as any business where a token, being a voucher, stamp, cheque, booklet, coupon, card form or other document or thing is given or issued to a person (referred to as “customer”) by the person carrying on the business (referred to as “issuer”), whereby such issuer undertakes that: (a) on the production of the token, whether or not some other action is also required, the issuer will supply cash, goods or services on credit; or (b) where, on the production of the token to a third party, whether or not any other action is also required, the third party supplies cash, goods or services, the issuer will pay the third party for them, whether or not deducting any discount or commission, in return for payment to be made thereafter to the issuer by the customer.