Obtaining an offshore forex license: LABOAN
Why do I need a Forex broker license on Labuan?
Providing brokerage services on the interbank international foreign exchange market is a very popular service today.
The Forex brokerage license on Labuan is necessary for conducting a monetary brokerage business by providing intermediary services in the organization of transactions between the buyer and the seller.
Labuan is an Asian federal territory that is a part of Malaysia.
The Forex brokerage of Labuan guarantees the security of your clients’ funds and keeps your company’s credibility.
Who issues Forex broker licenses on Labuan?
The Labuan Financial Services Authority – Labuan FSA is the official body responsible for regulating and developing international business and financial services. The main role of Labuan FSA is to license and regulate the activities of already licensed organizations, and to ensure their operation in accordance with accepted domestic and international standards. Applications for a Forex broker license on Labuan are submitted on behalf of the applicant in the Labuan FSA.
What are the advantages of the Forex broker license?
- The significant benefits of obtaining a Forex broker license on Labuan are a low tax rate that is 3% of the verified net profit or fixed tax, as well as the lack of currency control.
- Legal entities – residents of Labuan, additionally can get access to tax benefits under the agreements of Malaysia on avoidance of double taxation.
- An important advantage of Labuan’s license is the ability to open a bank account in Malaysian banks. However, do not forget that Malay banks will ask the beneficiary personally to be present at the process of opening an account for the company.
- The term for obtaining a Forex broker license in Labuan is 3 months from the date of submission of all necessary documents.
Labuan FSA requirements for obtaining a Forex broker license
The Financial Services Authority of Labuan has the following requirements for obtaining a Forex broker license on Labuan:
- having a physical or legal person a good reputation and sufficient experience in working with money;
- availability of paid-up authorized capital in the amount of MYR500000 (≈USD128,000), deposited by the Bank of Malaysia;
- availability of a real office on Labuan.
The creation of the company on Labuan and the submission of an application for a Forex broker license are conducted remotely, but the beneficiary will need to visit the regulator for the initial interview.
Legal services for obtaining forex licenses
The SBSB team is always ready to answer all of your questions and accompany you at all stages of obtaining a forex license in Labuan.
If an offshore forex license does not suit to you, we will offer our professional services for obtaining a broker license in Europe or the USA: CYPRUS, MALTA, BULGARIA, UK, SWITZERLAND, LATVIA, ESTONIA, GEORGIA and other countries.
For over five years we have been advising our clients in the field of corporate law, international tax planning, finance, international licensing and integrated business support in more than 40 countries.
We will be glad to help you.