The Labuan Financial Service Authority (Labuan FSA) offers one of the most stringent regulatory frameworks for a wide array of financial services.



The premier International Business and Financial Centre (IBFC) of Malaysia, Labuan is an island off the Western coast of Sabah, on the island of Borneo.

The Money Broking License issued by Labuan FSA comes with strict requirements for capital adequacy (USD 125,000 or MYR 500,000), similar to many Straight Through Processing (STP) Licenses offered by European jurisdictions.

Money broking business is defined as the business of arranging transactions between buyers and sellers in the money market or forex market as an intermediary, in consideration for brokerage fees.

Brokerages licensed by Labuan FSA get to enjoy a 3% flat tax rate, one of the best tax rates in the world.

100% foreign ownership allowed, no Malaysian local partner required.

No tax on dividends to shareholders.

  • Time Frame: 4 – 6 Months
  • Taxation: 3% (On Audit)
  • License: Securities Dealers License
For each Director, Shareholder and Ultimate Beneficial Owner:
  • Notarized / Certified True Copy of Passport
  • Notarized / Certified True Copy of Proof of Address
  • Notarized / Certified True Copy of Bank Statement
  • Bank Reference Letter
  • Curriculum Vitae (C.V.)

For each Corporate Shareholders of the company:
  • Certificate of Incorporation
  • Memorandum of Association
  • Articles of associations
  • Articles of Incorporation
  • Register of Directors  
  • Register of Shareholdings
  • Certificate of Good Standing (if the company is over a year old)

Other Required Documents:
  • Liquidity Provider Agreement
  • Proof of Source of Wealth
Company Structure:
  • An Labuan offshore company incorporated under the Labuan Companies Act 1990.
  • The company should have a minimum paid up capital of MYR 300,000.
  • 2 Directors With Experience in Securities Industry / Brokerage
  • The licensed brokerage must maintain an operational office in Labuan with 2 resident employees.
  • All dealings must be done through this registered office in Labuan.

  • Standard corporate tax rate of 3% on audited profits
  • Exempted from Stamp Duty, Sales and Service Tax (SST)
  • No tax on dividends to shareholders

Accounting and Auditing:
  • Audit should be conducted by LFSA-approved Auditors
  • Audited financial statements and tax returns must be filed annually
  • Accounting records must be kept at the local office

  • Registered Agent & Office – Yes
  • Company Secretary – Yes
  • Professional Indemnity (PI) Insurance Cover – Yes
  • Physical Office in Labuan – Yes
  • Local Employees in Labuan – Yes
  • Legal Framework: Labuan Financial Services and Securities Act 2010
  • Regulatory Authority: Labuan Financial Services Authority (Labuan FSA)
  • Capital Requirement: USD 125,000 (approximately MYR 500,000)

Permitted Activities:
  • Bring together the counter parties on mutually acceptable terms for the same financial products in money or foreign exchange markets, to facilitate the conclusion of a transaction.

  • Act as a mediator only, and strictly not to act as a principal.

  • As the service is targeting institutional investors and high net worth individuals, brokers are required to impose a maximum leverage of 100:1 on clients’ tradings, i.e. a minimum margin of 1% for the opening of a position.

  • The counterparties, i.e. Principal Broker and Liquidity Provider must be recognized by the regulator.

  • Receive adequate and appropriate payment for its service in the form of brokerage or commission fees.

  • Only allowed to transact in foreign currency. No allowed to deal in Malaysian Ringgit (MYR) except for the defraying of administrative expenses.
  1. Submit all the necessary documents to the dedicated team at Offshore Tech & Intermediary Services

  2. Review and Conduct Due Diligence Checks on Directors and Ultimate Beneficial Owners (as per Know Your Customer (KYC) Policy)

  3. We will conduct name check and reservation at the Registrar of Companies (ROC) office

  4. We will subsequently prepare Application Forms, Compiling Necessary Documents & Reviewing of Application

  5. Submission of Application with the Labuan Financial Services Authority (Labuan FSA)

  6. Follow up and liaise with officials from the Labuan FSA
experience on your own

Let's have a cuppa!​​

Eager to know more? Get in touch with us.​