Commercial banks play a pivotal role within the banking ecosystem, serving as the foundation for digital banks and e-wallets. Despite the digital shift, the enduring credibility and perceived reliability of physical banks persist, owing to the personalized touch they offer.
In this evolving financial sphere, embarking on the journey to establish a commercial banking enterprise in Labuan can appear daunting. At FinArk Asia, we streamline this process, providing comprehensive guidance from application to the final setup of your registered financial institution. We navigate the complexities, assisting in your Labuan Commercial Bank license application through the Labuan Financial Services Authority (Labuan FSA), the issuing authority for bank licenses.
Key Activities of a Labuan Commercial Bank include:
- Receiving deposits on a current account, deposit account, savings account, or any other account.
- Offering credit facilities.
- Providing consultancy and advisory services relating to corporate and investment matters.
- Dealing in securities.
- Undertaking foreign exchange transactions.
- Dealing in derivative instruments or derivative financial instruments or any other similar risk management activities.
- Engaging in interest rate swaps, fund management, and more, as per Labuan FSA guidelines and Ministry approval.
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
Eligibility Criteria for Labuan Commercial Bank License
The applicant should meet the following minimum eligibility criteria:
1
Must be a bank or financial institution.
2
Possesses a soundtrack record.
3
Accorded a good credit rating by acceptable rating agencies.
4
Supervised by a competent regulatory authority.
5
Conforms to generally accepted standards of international banking practices or the Bank for International Settlements (BIS), as the case may be.
- 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 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