In the UK and USA, a Hedge Fund license is required for fund managers, while in Singapore and China,the establishment of a Fund Management Company (FMC) for asset management purposes is required. Contrarily, Labuan introduces a distinctive landscape where a Fund Manager, a professional housed within a business entity, manages funds on behalf of the business for investments or trading purposes.
Defined by the Labuan FSA, a Labuan Fund Manager is a person who provides management services which may include investment advice or administrative services in respect of securities for the purposes of investment, including dealing in securities. For those venturing into Islamic fund management, its fund management operations shall comply with Shariah principles. Any Labuan Company aspiring to delve into fund management must secure the requisite licensing.
When setting up a Labuan Mutual Fund, it is compulsory for a Labuan Public Fund but optional for a Labuan Private Fund, to appoint a Labuan Fund Manager to manage the fundraising and investment activities of the fund.
As shown in the structure below, it is evident that the licenses and company structures available in Labuan can be combined to meet the needs of your desired business. For instance, you may choose to set up a Labuan Fund (either public or private) in the structure of a business Partnership to make strategic domestic and/or foreign investments, with a minimum requirement of 2 partners. Alternatively, you may choose to set up any company structure that suits best with the Fund Management Company or Fund you would like to establish.
Labuan unfolds a tapestry of possibilities, where licensing and structures can be combined to align with your business aspirations.
Compared to different jurisdictions with similar fund management licenses, Labuan has the lowest tax rate with the shortest application time frame. Located in the center of Asia, with easy accessibility that easily connects to the ASEAN region, Labuan is recognized by the region. A Labuan company can be listed on Hong Kong, Singapore, Dubai and Australia Stock Exchange Market. In the year 2018, Labuan Authority signed an MOU with the China Banking and Insurance Regulatory Commission (CBIRC) for greater collaboration. With the great effort of the authority, Labuan Fund Manager has a more significant opportunity to conduct their business across the region.
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
Any individual who holds a relevant degree or professional qualification to carry on fund management activities will be eligible. Applicants with at least a minimum qualification of diploma holder and 3 years’ relevant experiences in the capital market or direct experiences in fund management activities may also be considered.
Approved fund manager or any provider of such services from a country or jurisdiction who is a member of the International Organization of Securities (IOSCO).
Anyone who does not fulfill (1) and (2) may also be considered, provided that the fund management activities are run and managed by suitably qualified and experienced individuals.
Interested applicants may contact our team for pre-assessment on your eligibility for Labuan Fund Manager License.
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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