Application Requirements

An application can be considered from a company meeting the following criteria:

• A trust company licensed under the Labuan Financial Services and Securities Act 2010
• A firm engaging in company management activities licensed by the regulatory authority in the country of origin, if applicable
• A Labuan company incorporated under the Labuan Companies Act 1990 run by personnel with the necessary expertise and skills.
• The company can demonstrate that is has undertaken similar activities in other financial centres
• The company has no adverse report from any reliable sources
• The company has a proven performance record with consistent returns on equity and  assets

Licensing Requirements

• The applicant company must have a minimum authorised capital of MYR500,000 and paid up of MYR100,000 (unimpaired by losses) or its equivalent in any foreign currency
• The applicant company must produce a guarantee and provide a security deposit of MYR50,000 with Labuan FSA to undertake any liability arising from its operations
• The Board of Directors and/or Chief Executive Officer must consist of persons deemed fit and proper, and prior written approval from Labuan FSA is required before such appointments can be made. A signed declaration on secrecy is also required
• The applicant company must have business plan, which include plans to promote Labuan IBFC
• The applicant company must inform Labuan FSA of any changes in the shareholding structure or capital and/or any erosion of paid-up capital.
• An applicant company must satisfy Labuan FSA that it has expertise and experience to undertake Islamic company management business
• An applicant company providing Islamic company management services must engage the services of a Syariah Advisory Panel comprising reputable Syariah law experts

Operational Requirements

Among operational requirements are:

• The applicant company must maintain a registered office in Labuan, through which all dealings must be done
• Transactions must be in currencies other than the Malaysian Ringgit, except as permitted by the relevant legislations and authorities
• The applicant company shall provide company management services to Labuan companies and non-residents only
• The applicant company shall appoint an approved auditor
• The applicant company must notify Labuan FSA of any amendment or alteration to any of its constituent document, and
• The applicant company must be active in its performance judged from the number of eals, projects etc. arranged in each year.

Application Requirements

All applications should be directed to Director General, Labuan FSA and should include, amongst others the following:

• a business plan detailing the operations and strategies of the applicant with regard to its Labuan entity
• the composition of the Board of Directors and senior management of the applicant, please note that prior written approval of Labuan FSA must be obtained for the appointment of directors, controller or chief executive officer
• audited financial statements of the applicant for the last two years, if applicable, and
• any other information that is relevant to the application.

Annual Fee

All licensees are required to pay Labuan FSA an annual licence fee of MYR5000 on or before 15th January each year.