Labuan Mutual Fund

The mutual fund or fund sector in Labuan is allowed to be structured as a Labuan company, partnership, protected cell company (“PCC”), foundation or unit trust. You may also set up Labuan Islamic mutual funds operating in compliance with Shariah principles.

Key Benefits of Mutual Funds in Labuan

  • Flexible structure – in the form of Labuan company, partnership, protected cell company, foundation or unit trust.
  • Support multiclass fund – multi currency / asset class.
  • Hassle free private fund set-up – no approval required, fund manager need not be licensed, fund manager can be based outside Labuan / Malaysia.
  • Simple tax structure.
  • Withholding tax exemption on payments made to non-residents.
  • No stamp duty on instruments relating to offshore business activities including share transfer.
  • No foreign exchange controls.
  • No capital gain tax, inheritance tax.
  • Double Tax Agreements between Malaysia and over 70 countries.
  • Strategically situated in the Asia Pacific region and sharing a common time zone with many large Asian cities.
  • 50% tax abatement for expatriate professionals and managers employed under Labuan companies.
  • 100% exemption for director’s fees received by non-citizen directors of Labuan companies.

PRIVATE FUND

MAXIMUM 50 INVESTORS First time investment by each investor is NOT LESS than MYR250,000 equivalent; OR UNLIMITED NUMBER OF INVESTORS

First time investment by each investor is NOT LESS than MYR500,000 equivalent

Not offered to general public Fund Manager need not be licenced No approval required from Labuan FSA Notification to Labuan FSA prior to launching of fund by submission of fund offering documents

Common Type of Fund Vehicles

Companies

Ordinary shareholder(s) & preference shareholder(s)

Unit Trusts

Trustee & Unitholders

Limited Partnerships

General Partner(s) & Limited Partner(s)

PUBLIC FUND

Offered to any member of general public Need prior approval from Labuan FSA Funds must be registered with Labuan FSA before commencement of business Must appoint fund manager, trustee, administrator and custodian that are approved by Labuan FSA

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