Labuan is a federal territory of Malaysia. The economic policy of this Asian offshore zone combines flexible tax rates, a high level of business confidentiality, and a simple procedure for obtaining forex licenses.

The advantages of the jurisdiction for businesses in the Forex industry or in the field of binary options are also:

• relatively fast licensing times – no more than 3-4 months;
• low taxation – 3% of profits or a fixed rate of RM 20,000 per year;
• the ability to open accounts with a local bank;
• the presence of agreements on the avoidance of double taxation with many countries;
• Labuan's forex license is equivalent to a European one;
• 100% foreign ownership is possible.

Features of the forex license

A Forex license in Labuan allows for legal operations in the Forex market. A company holding the license can carry out various operations and transactions in the Forex market, including:

acting as an intermediary, bringing together counterparties on mutually acceptable terms in the foreign exchange market to facilitate the conclusion of a transaction;

receiving reasonable brokerage or commission fees;

buying and selling CFD and Forex contracts in the money markets.

The holder of a forex license in Labuan acts as an intermediary, not a principal.

How to obtain a forex license

To obtain a forex license, it is necessary to register a company in the jurisdiction, open a bank account, and submit an application to the local regulator – the Financial Services Authority (FSA).

The beneficiary must meet certain requirements of the regulator:

• contribute authorized capital – RM 500,000;
• have at least 2 directors and a shareholder with relevant experience;
• have at least 1 employee, as well as a compliance officer;
• have a local office;
• establish internal policies and control mechanisms in the areas of operational activities, compliance, corporate governance, and risk management.

The application for a forex license in Labuan must be accompanied by documents, the list of which is determined by the regulator.

IT OFFSHORE lawyers will help resolve issues related to the registration of a brokerage company and obtaining a forex license in Labuan, taking into account all FSA requirements.