Licensing

Forex License
Labuan serves as an attractive place for setting up forex brokerage business in the Malaysia region and provides relatively favourable corporate taxes.
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Incorporation & obtaining license: 2,5-3,5month

Minimum paid up capital: RM300,000 (unimpaired by losses) or its equivalent in any foreign currency (we recommend to have approx. USD 90 000, 00 as a paid-up capital).

License application fee: USD 500

License renewal government fee: USD 1200

Overview

Labuan is an island and a Federal territory of Malaysia. It is located in the South China Sea at the northwest coast of Borneo, north of Brunei and south of Kota Kinabalu, the capital of the state of Sabah.

For various financial services Labuan Malaysia offers one of the strongest regulatory frameworks and taxes in Labuan are comparatively low (3%).

For starting money broking business in Labuan, it is required to obtain a license from Labuan Financial Service Authority (FSA).

There are three options for launching money brokerage business in Labuan:

  • have an established Labuan company in Labuan (with knowledge and experience in money brokering business)
  • obtain domestic money broker license
  • by confirmation of Bank Negera Malaysia (The Central Bank of Malaysia) operate as licensed institution in accordance with Banking Financial Institutions Act 1989

In order to qualify and maintain the license it is necessary prior to applying for license to have a good track record of financial performance (as minimum of 3 years before submission of application) and it is required to undertake a functional operation of company in Labuan.

N.B.

The money broking license permits the brokers to offer only Straight-through processing (STP) trading, but nevertheless it provides with possibility for easier acquiring of a bank account.

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Facts & Info for Labuan Money Broking License

Notable features
Procedure
Documents Required

General information

Company structure

  • Only one shareholder (can also be a legal person, no nationality or residency restrictions)
  • At least two directors (can only be natural person, no nationality or residency restrictions)

Confidentiality

  • Beneficial owners' details – Not part of public record
  • Shareholders' details – Not part of public record
  • Directors' details – Not part of public record

Taxation

3% of audited profits or fixed price per year MYR 20 000 (based on company’s preference can be chosen on or the other)

Other benefits

  • There is no restriction on form of meeting for shareholders and directors and no restriction for place of meeting.
  • It is possible to open a variety of Banks in Malaysia for the company.

Accounting requirements

A Labuan Offshore Company needs to have an audit performed by an approved auditor. An annual return must be filed 30 days prior to the companies’ anniversary date of incorporation. A set of accounting records must be kept in Labuan.

Secretary

Resident secretary, provided by local trust company

Registered Agent

Required, local trust company

Local office

Required together with a local phone line

Local employees

Required

Company name

  • Language: Any
  • Letters: From Roman alphabet
  • Company name must end with such sufixes or their abbreviations: Limited, Incorporated, Corporation, Sociètè Anonyme, Sociedad Anonima. If the Malaysian word Berhad is used then it must be preceded by "(L)" to denote that the company is incorporated in Labuan.
  • Names Requiring Consent or a Licence: Bank, building society, insurance, assurance, reinsurance, fund management, investment fund, trust, trustees, Chamber of Commerce, university, municipal or their foreign language equivalents.

N.B.

  • Restricted connections for company name: name of state, national or local government.
  • Any name that implies illegal activity or implies royal or government patronage is restricted.
  • Registrar may reject any name which it considers undesirable or contrary to the public interest.
  • Company name is restricted to be identical or similar that of an existing company.
  • In case when foreign language is used for company name the translation may be asked by Registrar to ensure conformity to above listed restrictions.

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

  • Gathering and preparing of the documents for initial verification
  • Once the verification is done and initial paperwork is prepared, the originals must be couriered
  • Other relevant documents should be provided to the LFSA based on their requests
  • Application will be processed with the LFSA for the license
  • Conditional approval will be provided by LFSA so that you will have enough time (usually 3 months) to:
    • Fulfil the capital requirements (300 000.00 RM) for the company. After the capital is deposited, you can utilize the funds for company's operator.
    • find and set-up an office,
    • apply for the phone number,
    • find a local employee,
    • Comply with other requests.

Before receipt of license from the LFSA, it is required to pay the annual fee of RM 5000 (this is done every year as a government renewal fee)

In order to obtain forex license, we will fill all necessary application forms and also acquire apostilled corporate documents.
For that reason, please provide us with the following documents:

  1. For bank:

(Each beneficial owner, shareholder, director, authorised signatory)

  • A notarized copy of valid passport
  • A copy of proof of residential address (ex. utility bill that is not older than 3 months)
  • A notarized copy of Letter of Reference form Bank, Attorney or Accountant
  1. For local regulatory authority:

(Each beneficial owner, shareholder, director, authorised signatory and secretary must provide)

  • CV
  • A notarized copy of valid passport
  • A copy of proof of residential address (ex. utility bill that is not older than 3 months)
  • Two Professional letters from a notary, lawyer, auditor or similar,
  • Bank reference
  • A notarized copy of a University Diploma
  • For shareholder: 3 months bank statement with enough funds to cover the capital requirements

N.B.

  • If documents are not in English language or language of particular country, then they must be accompanied by a notarized translation.
  • Please ensure that notarization is in English language if not then please provide with notarized English translation.

Additional documents may be requested by the regulatory authority or local Bank at any point to certify specific information

This Pre-Check form is a standard and required procedure, which gives an opportunity to make a merchant agreement based on full and detailed information. By giving incorrect or incomplete information may lead to agreement delay.
Merchant details
Contact details
Processing information
     
     
Optional: provide processing history (statement of last 6 months) with your current/previous acquirer.
Attach only: .doc, .docx, .pdf (File size not to extend 10 MB)
*Required fields
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