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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