Navigating Labuan's Insurance Landscape: Understanding General Insurance
In accordance with Labuan's regulatory framework, a Labuan general insurance business is distinctly characterised as insurance activities falling outside the realm of life insurance. This segment encompasses diverse coverage areas, such as accident, medical, surgical, and hospital expenses insurance. Widely recognised as non-life insurance, Labuan general insurance encompasses a spectrum of risk mitigation services tailored to safeguard against a myriad of non-life contingencies. This nuanced definition underscores the comprehensive scope and varied dimensions encapsulated within Labuan's dynamic insurance sector.
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
- Insurer must be a member of the Labuan International Insurance Association.
- Maintain a minimum paid-up capital or working funds of MYR 7.5 million or its equivalent in any foreign currency.
- Mandate the provision of a letter of guarantee or undertaking from the parent company to Labuan FSA (if applicable).
- Establish an operational office in Labuan with a minimum number of 4 full-time employees and a minimum annual operating expenditure of MYR 100,000.
- Appoint a person in control, director or principal officer (PO) whom must be fit and proper, subject to prior approval from Labuan FSA. However, Labuan general insurers that are established as a branch are not required to obtain approval on the appointment of their directors.
- May set up a marketing office in Kuala Lumpur to facilitate meetings and business dealing with clients.
- Comply with annual corporate tax filing to Labuan Inland Revenue Board and Labuan FSA.
- 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