Guide to Applying for a Labuan Company Management Business License

What is a Labuan Company Management Business License?

Labuan Company Management Business License (CMB) enables your firm to provide treasury processing services and such other services, and to such persons, as may be permitted by Labuan FSA.

Permissible Activities that a Labuan Company Management Business License can Undertake:

Activities	Description
Treasury services to own group or related companies	Intra-group financing, cash and liquidity management, in-house financial or investment advisory, account receivables and payables, trade finance, reporting services.
Back office and middle office services	Provision of administration and support services, business settlement, clearance of record maintenance, etc.
Authorised representative for support services	Act as an Agent for clients and to receive commission as fee for services such as business advisory.
Intermediation function	Act as an Arranger between two parties, providing support in terms of sale contracts, processing orders or invoices, supplier market information or providing technical support, etc.

Labuan IBFC also allows companies to provide such Islamic services as long as they are in accordance with the Shariah principles and a Shariah Advisory Panel is required to advise on its operations.

Why Choose Labuan

Strategic location to tap into the Asia Pacific market

Shared time zone with major Asian cities for seamless interaction

Excellent infrastructure and regulations within the Labuan IBFC

OECD whitelist jurisdiction status

Recognised by prominent exchanges for entity listing (such as Hong Kong, Singapore, Malaysia, Australia, and Dubai Exchanges)

100% foreign ownership with a minimum requirement of 1 shareholder and 2 directors

Low corporate tax rate of 3%

Absence of withholding tax, stamp duty, GST, import duty, sales or service tax, capital gains tax, inheritance tax

Void of tax on dividends to shareholders

Void of tax on director fees for foreign directors

Licensing & Operational Requirements of a Labuan Company Management Business License

Operational Requirements

Maintain a minimum paid-up capital of MYR 100,000 (unimpaired by losses) or its equivalent in any foreign currency.
Submit a non-interest refundable security deposit of MYR 100,000 to Labuan FSA.
Establish an operational office in Labuan with at least 2 full-time employees and a minimum operating expenditure of MYR 100,000, where all dealings must be done through this registered office.
Appoint a director or chief executive officer (CEO) who must be fit and proper, subject to prior approval from Labuan FSA.
Notify Labuan FSA of any changes in the shareholding structure or capital and /or any erosion of paid-up capital. Any amendments or alterations to constituent documents or business plan should be promptly notified to Labuan FSA within thirty (30) days.
Those providing Islamic company management services must engage the services of a Shariah Advisory Panel comprising reputable Shariah law experts.
May not be allowed to undertake an Islamic company management business unless Labuan FSA is satisfied that the firm has necessary expertise and experience in handling such business.

FA Advisory offers one-stop application solutions for your Labuan Company Management Business License, encompassing:

Consultation on eligibility and procedural guidance tailored to your profile.
Profiling, due diligence and guidance on documentation preparation.
Preparation of Business Plan, Financial Forecast and Operation Manuals.
Submission and supervision of the application process until approval.
Acting as your liaison and contact point with LFSA, arranging for interviews (if any).
Tracking the license approval and handling all queries from LFSA.
Advisory services on the appropriate company structure post-approval.
Assistance in setting up onshore and offshore bank accounts.
Assistance in establishing operational and marketing or co-located offices.
Staff provision and office space rental.
Internal audit and compliance advisory.

About FA Advisory

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