We can help you to set up a foundation in Labuan for different purposes such as a charitable foundation, family foundation or private foundation. Whatever your intention or objective are or if you are still uncertain on how a Labuan offshore foundation can help you, speak to us today and let us advise, structure and deliver a solution according to your needs.
Common uses for setting up a foundation in Labuan
Foundations are set up to hold assets, either on behalf of families or organizations for:
- Private Wealth Management
To know more about Labuan Foundation, see the links below
Benefit and Advantages of Labuan Foundation
Why set up a foundation and why choose Labuan? Here are some benefits to you or your organization
A Foundation is a separate legal entity, as a registered corporate entity on its own. It can enter into contracts and transactions on its own
- Protection from potential foreign and creditor claims made against beneficiary of the Foundation
- Includes forceful liquidation claims to meet obligations arising from creditors, lawsuits or divorce
- Protection against forced heirship
Flexibility and Confidentiality
- Not restricted to any compulsory perpetuity period
- Information relating to Foundation is confidential and kept anonymously
- No Foreign Exchange control imposed
Cost efficient and Tax Savings
- Simple tax systems in Labuan. For non-trading activities, no charges for taxation.
- No withholding tax
- No capital gains tax
- No inheritance tax
- No stamp duties for any offshore business activities
Structure of a Labuan Foundation
The diagram below explains the structure, composition and functions of those involved in a Labuan Foundation
Labuan Foundation Simple Structure
Composition and Functions
Labuan Foundation Composition
The following diagram below is an example of a real life sample structure of a Labuan Foundation.
*Kindly note that this is a non-exhaustive example. Please contact us for an obligation free consultation to suit your needs and goals
Characteristic of Labuan Foundation
- No minimum capital is required.
- Exists “in perpetuity”
- All aspects of the foundation is kept confidential except for the charter.
- There is no statutory requirement for an audit unless ordered by the Court.
- A foundation established in another jurisdiction can be legally re-domiciled to Labuan and vice versa, provided that the other corresponding jurisdiction permits.
- A Labuan Foundation is protected from foreign claims and cannot be forcefully liquidated to satisfy other obligations such as claims arising from divorce, lawsuit or creditors.
- Council members do not owe fiduciary duty to beneficiaries and hence, this eliminates competing beneficiaries’ interests.
- All Labuan Foundations are expected to carry on business in any currency other than the Malaysian currency except as permitted by the relevant authorities.