The financial services landscape in Asia is witnessing a transformative shift driven by technology-based innovations. This evolution has given rise to the emergence of digital banks in Labuan, aimed at delivering financial services with enhanced effectiveness and efficiency to a wider market audience. Labuan Financial Services Authority (Labuan FSA) offers the Labuan Digital Banking License, catering to both conventional and Islamic financial services. This trend is not confined to Labuan alone, as countries worldwide, such as Hong Kong and Singapore, have already granted digital banking licenses to prominent entities like Tencent, Ping An, Ant Group, DBS, OCBC, and UOB.
A Labuan Digital Bank mirrors traditional banking services but distinguishes itself by operating predominantly or entirely online. In line with its core identity as a digital entity, a digital bank can only operate one physical place of business in Labuan, unlike traditional banks which can have a physical network of bank branches.
For enterprises contemplating the digital transformation of their banking operations and venturing into the Asian market, Labuan presents an enticing option. With a minimal corporate tax rate of 3%, Labuan facilitates the realization of business objectives. Our comprehensive services span Labuan company incorporation, seamless operational license applications, and thorough assistance, ensuring a smooth transition to the digital banking landscape.
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
The applicant will have to meet all three criteria below to be eligible to apply.
Has strong financial resources and demonstrates the ability to meet and maintain the minimum paid-up capital.
Has a credible and viable business plan which sets out the approach on how it intends to incorporate the innovative use of technology for its operations to meet the proposed strategic business objectives.
Demonstrates the ability to conduct digital financial services, e-commerce and technological-driven business.
FA Advisory offers one-stop application solutions for your Labuan Digital Bank License, encompassing: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