Labuan International Business and Financial Centre (Labuan IBFC) is at the forefront of championing the Digital Revolution. Through its Innovative Financial Services (IFS), encompassing digital or fintech financial services, Labuan IBFC continually expands its “digital toolbox” to meet customer needs and the rapidly evolving industry demands.
This digital toolbox includes licenses for money broking, credit token, fund management, and securities, providing a regulatory framework for digital businesses. These licenses enable the seamless operation of digital ventures, ensuring compliance with regulations while fostering innovation in the financial sector.
The licenses can be combined strategically to meet the operational goals of potential digital license holders. For example, integrating a digital currency trading platform with a digital token/asset issuance license not only allows for token creation but also facilitates the establishment of a cryptocurrency exchange platform for trading these tokens. Alternatively, one can digitalise traditional banking activities by obtaining a digital bank license. With numerous options for customization, businesses can create their ideal digital ventures.
In essence, this toolbox streamlines the establishment of blockchain, cryptocurrency, and fintech-related entities, encompassing a wide spectrum of financial services such as digital banking and insurtech, as well as digital intermediaries like digital asset exchanges, cryptocurrency trading platforms, blockchain tokens, e-payment systems, STOs, and robo-advisory services.
Labuan IBFC provides a conducive environment for digital industries, characterized by tax and currency neutrality, proportionate regulation, strategic location, and cost efficiencies, facilitating easy setup and expansion.
All licensed entities in Labuan IBFC, including those in the digital sphere, are subject to a tax rate of 3% on net audited profit*. However, opting to structure your entity as an investment holding entity allows for tax exemption*, enjoying a 0% tax rate. Additionally, Labuan offers various tax incentives covering capital gains tax, withholding tax, stamp duty, sales tax, and more.
*subject to compliance to substance requirements
Comprising a team of seasoned professionals well-versed in Labuan’s business landscape, FA 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 FA 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 FA 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