Labuan Foundation Services – Set Up, Register and Start


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
  • Charity

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

Asset Protection

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

Simple Structure

Labuan Foundation Simple Structure

Labuan Foundation Simple Structure

Composition and Functions

Labuan Foundation Composition

Labuan Foundation Composition

The following diagram below is an example of a real life sample structure of a Labuan Foundation.

 

 

Structure Example

Labuan Foundation Structure Sample

*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


Characteristics
  • 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.

 

We also provide assistances in applying for the following licenses in Labuan