Labuan Investment Banking License.
A Labuan investment banking licence under the Labuan Companies Act 1990, established as a branch or subsidiary and regulated by the Labuan FSA. Investment banks may not accept deposits. A 3% corporate tax rate and broad exemptions apply.
Licence overview
Important: JY Global does not act as broker, market maker, principal, counterparty or product issuer. Our role is coordination only.
The licensing process may involve company incorporation, document preparation and regulator review. JY Global's role is limited to project coordination and preliminary compliance input.
Comprehensive guide to licensing
A Labuan investment bank can be set up as a branch or subsidiary registered or incorporated under the Labuan Companies Act 1990. Labuan investment banks are not allowed to accept deposits.
Company structure
- At least 2 directors (with banking background) meeting the fit-and-proper criteria
- Principal Officer (can be one of the directors)
- Compliance Officer (independent from the Board of Directors)
- At least 3 local employees
Taxation
- Corporate tax rate of only 3%
- No withholding tax on dividends, interest, management fee, royalty and technical fees
- No import duty, sales tax or service tax for all international dealings
- No inheritance tax
Local presence
- Registered office – required
- Registered agent – required
- Secretary – required
Accounting and audit
- Submission of accounts to Labuan FSA within 6 months after the close of each financial year
- A local approved auditor must be appointed during the process
- Minimum of MYR 180,000 of annual operating expenditure in Labuan
Company name
- Language: any; letters from the Roman alphabet
- Names identical or similar to an existing company are restricted
- Names with royal, national, international or commercial significance, or that are misleading, deceptive or offensive, are prohibited
- Only the suffix “Limited” is allowed; after incorporation the suffix “Ltd” can be used
Steps to obtain licence
- 1Proposal of the name for the bank
- 2Submission of the banking licence application to Labuan FSA
- 3Conditional approval processing (approx. 30–60 days)
- 4Company formation
- 5Fulfilment of all requirements per the conditional approval
- 6Issuance of the banking licence
Standard documents
- A notarized copy of valid passport
- Detailed CV, dated and signed
- Notarized second ID
- Criminal record of no conviction
- Notarized copy of proof of residential address (e.g. utility bill not older than 3 months)
- 2 certified professional reference letters
- 2 certified bank reference letters
- Notarized copies of diplomas of higher education
- 3-month bank statement showing funds sufficient to cover capital requirements and support the first year of business
If holding company (shareholder is a company)
- A letter of awareness from a competent regulatory authority supervising the applicant’s shareholder / head office
- A letter of guarantee from the applicant’s shareholder, or an undertaking from the head office
- Business plan inclusive of three years’ financial projections
- Certified true copy of the Memorandum and Articles of Association of the applicant
- Certified true copy of the board resolutions or general-meeting minutes approving the licence application
- Copy of the audited annual accounts of the shareholder / head office for the three preceding years
- Applicant’s corporate profile (name, place and date of establishment; directors and officers; members holding 10% or more of voting shares)
- Declaration on the probity of directors and officers, plus any other relevant information
* Subject to legal review, eligibility assessment, regulatory approval and local professional advice. No approval or timeline is guaranteed.
Tell us about your structure. We'll tell you what's realistic.
A senior advisor reviews eligibility, beneficial-ownership and substance requirements before any application begins. Initial conversations carry no engagement fee.
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