Steps for obtaining a Forex license in Labuan in 2022: instructions

Steps for obtaining a Forex license in Labuan in 2022: instructions

If you plan to conduct brokerage activities, pay attention to Labuan, an offshore jurisdiction that is part of Malaysia. Low capital requirements, access to quality banking services, and fast licensing - the list of offshore advantages is far from incomplete. How to get a Forex license in Labuan in 2022, read in this article.

Advantages of a Labuan Forex license

  • The license allows you to expand your brokerage business in the Asia-Pacific region;
  • The tax rate is 3% per year on net profits or a fixed amount (20,000 Malaysian Ringgit);
  • No currency control, stamp duty or GTS, dividend tax to shareholders;
  • Opportunity to obtain tax benefits, avoid double taxation with countries with which Malaysia has signed a treaty;
  • Opening a bank account in any bank in Malaysia;
  • Forex license is issued within 3 months from the date of filing all documents;
  • 100% foreign ownership and no need for Malaysian partners.

Basic requirements for obtaining a Forex license

The broker must meet the following requirements:

  • work only with foreign currency, local can be used only for administrative and statutory expenses;
  • it is forbidden to serve the residents, except for the authorized dealers;
  • to have a good reputation and experience in handling money for at least 3 years;
  • authorized capital is $128,000 and must be deposited with a bank in Malaysia;
  • must have a physical office in Labuan through which all transactions will be conducted;
  • there must be at least 2 local employees;
  • an auditor must be hired.

How to get a Forex license

Creating an organization and applying for a Forex license in Labuan 2022 can be done online, but the beneficiary must visit the regulator for an interview. The permit is issued by the Labuan Financial Services Authority (Labuan FSA). After obtaining a license, the applicant company must notify the regulator of all changes and amendments to the articles of incorporation.

Issuance of a Forex license in Labuan takes place under the following scheme:

  • A company is created and a unique name is chosen;
  • An application is submitted to the FSA for a broker's license, which is accompanied by the necessary documents;
  • The regulator reviews the application for up to 2 months. If everything is in order, it issues a permit for money operations.

Documents for a Forex license in Labuan

To get a permit, you have to provide the following documents:

  • A commitment letter from the head office / parent company to assume any responsibility that arises from the activities of its branch or subsidiary registered in Labuan;
  • The director, CEO and board members must meet all requirements, pre-approved by the FSA;
  • A statement of confidentiality and secrecy by the directors and management personnel of the applicant;
  • A business plan detailing the applicant's operations and strategies;
  • Audited financial statements of the applicant for the past 2 years (if available);
  • Any other papers that may be required by the regulator;

How to get a Labuan Forex license fast

If you go to conduct Forex activities in Labuan, contact IT-OFFSHORE specialists and we will help you.

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