How to get a Forex license in Labuan in 2021
Many businesspeople plan to obtain a Forex license in Labuan in 2021. This territory is part of the Federation of Malaya. The territory includes a number of islands. The jurisdiction is known as an offshore center. Labuan, as a region of Malaysia, participates in several dozens of double taxation avoidance agreements.
Advantages of a Forex license in Labuan
Obtaining a Forex license in Labuan is advantageous. This offshore jurisdiction has a stable relationship with the EU, there are some advantages for foreigners. For more information about obtaining a permit, contact our specialists at IT-OFFSHORE.
The main advantages are the following:
- Great speed of incorporation of brokerage work;
- Ability to optimize taxation;
- Ability to use the services of the largest banks in the territory;
- It is easy enough to open an account.
The license obtained in Labuan provides the same opportunities as the European license. Registering a brokerage company in Labuan is not difficult. Full foreign ownership is not prohibited, and there are no limits on the geography of clients. A founder from another country can apply for a business visa, and you can open an account.
The tax burden can be profitably optimized. The levy on investment activities is 0%, and there is no currency control. There is an opportunity to ensure a high level of confidentiality of beneficiaries.
To open a brokerage company with a license, a number of conditions must be met. Availability of an office in the country of incorporation is required. At least 2 local employees are required. Tax and accounting reports are required to be filed on time.
It is not possible to conduct business as a forex broker without complying with the conditions. A licensed local broker, a company with experience, and a firm with a good reputation regarding financial transactions can apply.
To conduct brokerage work in the jurisdiction, registration of the company will be required. Availability of capital of at least RM 500,000 is required. The company is required to prove its presence in the jurisdiction. A registered office, at least 2 local employees and a duly qualified director are required.
Documents to apply for a license
If you have a firm in the country, you can apply for a license from the FSA and provide notarized data. A letter from the company committing to taking responsibility for the operation of the company, information about the firm, and a business development plan are required.
The applicant's statements for the past 24 months may be required. Additional information may be provided per the request of the regulator. If the application is approved, the founder receives a license, which works for all countries and allows cooperation with residents of EU, Asia, and Eastern countries. The processing time is about 2 months.