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Getting a Forex License in Labuan is a good option for brokers because of low taxes, easy access to the Asian market, and the ability to fully own a foreign company. Alparanjo can help you get the license and quickly start your business in Labuan.

Labuan, an island near Borneo and part of Malaysia, is known for its friendly tax rules for businesses. Since 1990, the Financial Services Authority (LFSA) has managed its financial operations, making it a popular place for international brokers, including forex traders, to operate with low taxes.

A Labuan Forex License allows you to run a brokerage with 100% foreign ownership and access to Asian markets. By registering offshore, companies benefit from low or flat taxes and can enjoy tax breaks. Getting a license takes about three months, making Labuan attractive for forex brokers. To get a Labuan Money Broking License, your company needs at least two directors and two shareholders with the right education and at least three years of brokerage experience, ensuring you meet industry standards.

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Advantages of a Labuan Forex License

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1

Low taxes

Labuan has one of the lowest tax rates, just 3% on profits, or a flat fee of RM20,000. This makes it a great place for forex companies to save on taxes and invest more in growing their business.

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2

Easy to open bank accounts

It's easy for business owners to open a bank account with Labuan’s local banks. Even though the account holder needs to be present, this adds to the security of the financial system.

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3

Tax benefits

People in Labuan can enjoy tax incentives through international tax agreements, making it even more attractive financially.

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4

Low fees

Compared to other places, Labuan has low fees, around $1,000 for yearly maintenance and application. This helps businesses save money.

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Fast and simple licensing

Getting a Forex License in Labuan is quick and easy. The process takes only 4 months, showing how efficient the system is.

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International recognition

A Labuan Forex License is valued the same as a European license, which boosts its global trust and reputation. This opens up business opportunities worldwide.

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No currency restrictions

Labuan has no limits on foreign currency exchanges, allowing easy movement of money and smoother international transactions.

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100% foreign ownership

You can fully own a company in Labuan without needing a local partner, giving you full control over your business.

Find more information about the
Forex License in Labuan

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Requirements for Labuan Money
Broking License

To get a Labuan money-broking license, you need to:

  • Show proof of a good reputation, 3 years of work experience, and relevant education for the beneficiaries.
  • Register the brokerage company locally.
  • Provide a bank statement to prove your capital.
  • Rent or buy a local office.
  • Set a maximum leverage of 100:1 for client trades.
  • Follow anti-money laundering (AML) rules.
  • Report any issues related to Know Your Customer (KYC) policies to the LFSA.
  • Have an external auditor check your business every year.

Process and timeline for obtaining a Labuan
Money Broking License

How to Get a Labuan Money Broking License: Simple Steps and Timeline

  • Collect Documents: Start by gathering all the needed papers, like company details, financial information, and your business plan.

  • Send the Original Documents: After an initial check, send the original documents by courier to the right authority for more processing.

  • Provide Extra Documents (if needed): Start by gathering all the needed papers, like company details, financial information, and your business plan.

  • Application Review: Your application will be sent to the LFSA for review and approval.

  • Conditional Approval: The LFSA may give you conditional approval. You’ll have up to 3 months to meet some requirements.

  • Meet Capital Requirements: Make sure your company has RM500,000 (about $110,000) in capital. Once this is done, you can use the money for your business.

  • Set Up an Office: Find a good location and set up your office according to LFSA rules.

  • Hire Local Staff: Hire local employees who are well-trained for the job.

  • Pay the Annual Fee: Before you get the final license, pay the annual fee of about $1,250. This fee needs to be paid every year to renew the license.

Documents You Need for a Labuan Forex License

To apply for the license, you'll need to submit these certified documents:

  • Corporate documents

  • Copies of personal documents for the owners

  • Professional resume

  • Proof of residency (like utility bills)

  • Letters from a lawyer, notary, and auditor

  • Bank statement

  • Proof of relevant education

  • A 3-year business plan with financial analysis and marketing strategies

  • Anti-money laundering (AML) and Know Your Customer (KYC) policies.

Service packages for registration of Crypto
license in Poland

Choose the best package of services for obtaining a Crypto
license in Poland (Polish VASP)

Full Package

€ 8000

  • Full Turnkey Company Formation;
  • Registering as Polish VASP within the Regulator;
  • Address of Registration for one year;
  • Obtaining Polish Trusted Profile (“EPUAP”);
  • Individual AML/KYC Policy;
Order now
Individual Package

€ 8000

  • Full Turnkey Company Formation;
  • Registering as Polish VASP within the Regulator;
  • Address of Registration for one year;
  • Obtaining Polish Trusted Profile (“EPUAP”);
  • Individual AML/KYC Policy;
Order now
Essential Package

€ 8000

  • Full Turnkey Company Formation;
  • Registering as Polish VASP within the Regulator;
  • Address of Registration for one year;
  • Obtaining Polish Trusted Profile (“EPUAP”);
  • Individual AML/KYC Policy;
Order now

Find more information about the
Forex License in Labuan

Send Request

Taxation and Regulation of Forex
License In Labuan

The Labuan Business Tax Law was created to meet international standards set by the Organization for Economic Cooperation and Development (OECD). It sets clear tax rules for offshore companies in Labuan.

The law’s goal is to make sure Labuan’s tax policies follow global rules, including sharing tax information and discouraging unfair tax practices. It helps make financial transactions more transparent and shows that Labuan is open to working with international regulators and financial institutions.

  • Pay a flat tax of 20,000 Malaysian Ringgit each year or 3% of net profits.
  • Enjoy full tax exemption on interest, management fees, royalties, and technical fees.
  • There are no exchange controls, making international transactions easier.
  • They are also exempt from other taxes like import duty and sales tax.
  • Hiring expatriates comes with a 50% tax reduction, and expatriate directors' fees are 100% tax-free.
  • Dividends paid to shareholders are not taxed.

Since the 1990s, Labuan has become a key offshore financial center. In 1996, the Labuan Financial Services Authority (LFSA) was created to help grow Labuan as a hub for international business and finance. It also oversees and enforces regulations in the financial sector.

The Labuan Financial Services and Securities Act of 2010 created a clear legal framework for regulating the offshore industry. The LFSA is the main regulator, with the power to license and monitor companies in Labuan. Brokerage services in Labuan are defined as intermediaries between buyers and sellers in the foreign exchange and money markets, with brokers earning a commission. Brokers do not directly participate in trading.

The law also sets out rules to protect market participants and keep confidence in Labuan’s financial system high. It includes requirements for licenses, audits, and risk management for companies operating in Labuan.

One important part of the law is how it works with double taxation treaties. These treaties allow businesses in Labuan to benefit from lower taxes, making it a good place for international companies to invest.

Labuan Forex License holders have two tax options:

Any Questions

Frequently Asked Questions

To get a brokerage license in Labuan, you need to prepare the required documents,
send the originals to the LFSA, meet all the conditions like showing proof of RM500,000
capital and opening a local office, and pay the yearly fee.
If you meet all the rules, it takes about 3 months to get a Forex License in Labuan.
The yearly fee for a Labuan money-broking license is around $1,250.
This amount must be paid every year to renew the license.
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