The Malaysian banking system comprises various institutions, including commercial banks, investment banks, finance companies, and Islamic banks, overseen by the Central Bank of Malaysia. While setting up a bank of choice is possible, meeting stringent substance and regulatory requisites is paramount.
In contrast to onshore banking complexities, Labuan offers a more inviting landscape. The jurisdiction warmly welcomes qualified candidates, individuals, or corporations, allowing 100% foreign ownership of banking businesses at a mere 3% corporate tax rate. Setting up a bank in Labuan presents numerous advantages in addition to these fiscal benefits.
Labuan offers three distinct banking licenses within the well-developed conventional and Islamic banking systems.
The primary distinction between a Labuan Commercial Bank and a Labuan Investment Bank lies in the latter’s restriction from accepting deposits across various account types.
Meanwhile, the recent surge in technology-driven advancements has paved the way for the Labuan Digital Bank. This innovative license operates as a ‘digital wrapper’ or a digitalised business plan, seamlessly integrating technological elements into the proposed licensed entity’s operations. For instance, candidates have the option to transform their Labuan commercial or investment banks by obtaining the Labuan digital bank license, embracing digitalisation within their banking frameworks.
About FAA Advisory Limited
Comprising a team of seasoned professionals well-versed in Labuan's business landscape, FAA Advisory Limited extends a comprehensive suite of services covering corporate services, private wealth management, and licensing compliance administration, all tailored to meet the unique needs of our clients.
At FAA Advisory Limited, our expertise lies in delivering Labuan insights that facilitate business expansion, simplifying intricate processes, and offering valuable information to guide you through various facets of your journey.
Choose FAA Advisory as your trusted partner in navigating the dynamic business landscape of Asia. With our commitment, we are your gateway to success in Labuan and beyond.
Email: advisory@finarkasia.com | Phone number: +6010-931 6678