Labuan Fund – Set up Private or Mutual Fund


A fund can be set up in Labuan, either as a company, partnership, protected cell company or foundation for the purpose of pooling and raising funds for investment purposes.

  • collections and pooling of funds for the purpose of collective investment with the objective of spreading investment risks
  • distributes interest in the fund, which allows the holder to redeem his investments that is agreed upon by parties; receiving an amount computed with reference to the value of proportionate interest

Understand more about Labuan Fund

To know more about Labuan Funds, click on any of the links below

 

Advantages of setting up a Fund in Labuan


Here are some benefits and advantages that you should know about setting up a Fund in Labuan

Flexibility

  • Different options of corporate structures to suit different purposes
  • Can support different structures for innovations
    • Fund can be denominated in multi currencies
    • Fund can be used to invest in instruments of different risk profiles

Cost Effective

  • Small capital requirement

Confidentiality and Protection

  • In Labuan, secrecy provisions prohibit any person from releasing information of the fund to another person

Structure of a Labuan Fund


The diagram below explains the structure of a Labuan Fund and its corresponding tax implications

 

Labuan Fund Structure

 

 

 

 

Characteristic of Labuan Fund


Private Fund

Those funds whose shares are: –

  • Not offered to the general public.
  • 2 types of Private Fund: –
    1. Consist of not more than 50 investors: First time investment is not less than MYR250,000 (equivalent in any foreign currency);
    2. Consist of any number of investors, and first time investment not less than MYR500,000 (equivalent in foreign currency).

Any fund designated by the Prime Minister as being private also falls into this category.

Public Fund

Those funds whose shares are offered to the general public for subscription.

The Minister of Finance in Malaysia also has the discretion to designate a fund as a public fund.

 

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