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.
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