FAQ on Labuan Private Fund

FAQ on LABUAN PRIVATE FUND

Unsure if Labuan Private Fund able to meet your objectives to raise fund for your projects. Look no further. FAQ on Labuan Private Fund is the answers to your most pressing enquiries!

What kind of entities I can register the Labuan Private Fund?

Labuan Private Fund can be registered under Labuan Company, Protected Cells, Limited Partnership. Most entrepreneurs will use Labuan Company for easy management and aim for future listing in the exchanges.

Can the investors be Malaysian residents?

Yes, they can be Malaysian individuals and corporate. However, the income derived their investment will be subjected to local Malaysia tax rate of 24%. The account has to be audited to file with the Inland Revenue- Local Department

Can Malaysians set up a Labuan Private Fund?

Yes

Who can invest in the Labuan Private Fund?

Labuan entities, foreign individuals and corporate. The profit tax will be subjected to Labuan Business Tax Act of 3% with audited report or pay flat fee of RM20,000 with only management account

Can I promote Labuan Private Fund openly to all Malaysians?

No. You can promote the fund in Labuan or outside Malaysia.

Is it a must to have Fund Manager and Custodian?

Not for Labuan Private Fund but these appointment is applicable to Labuan Public Fund

Labuan Private Fund can be Shariah compliant?

Yes and it is applicable for all instruments of the fund.

Is it a must to have financial reports to be audited?

It is optional if you opt to pay flat fee of RM20,000

Can I have my Marketing Office in other parts of Malaysia?

What is the personal tax benefits for foreigner directors and employees?

Director’s fees are fully tax exempt for the Directors. Managerial posts the expatriates employment will enjoy 50% tax rebate on their salaries.
These incentives are applicable up to Year Assessment 2020.

Can the company apply for work visa for the employees?

Yes, you can for your foreign directors and employees. They can enjoy tax rebate rate of 50% for the income they received.

What must I do when the closed-end Labuan Private Fund expired?

A notice to Labuan FSA is required.

How many fund type can I have under a Labuan Private Fund?

One investment objective per company. It can be open-ended or closed-ended with fund size unlimited.

Can I also issue Preference Shares to raise fund for Labuan Private Fund company?

Yes.

Can I list my profitable Labuan Private Fund?

Yes, most exchanges like HKex, SGX and Australia recognised Labuan entities for listing.

The investment to be promoted has to be foreign currency?

Yes, any foreign currencies except Ringgit

Can Labuan Private Fund invest in Malaysia projects and companies?

Yes

When can I promote my fund?

Once you have obtained the approval of the Memorandum of Information.

How long is the approval processing for Memorandum of Information?

Memorandum of Information of the fund is required to submit to Labuan FSA, the approval often within 30 to 45 days.

What is the annual compliance of Labuan Private Fund?

FAQ on Labuan Private Fund

Can Labuan FSA strike off the Labuan Private Fund?

Yes, if the Company did not pay the annual fee within 8 months, the company will be strike off.

Understand more on Labuan Private Fund Tax Profile Info

Send us your enquiry if you decided to start the Labuan Private Fund, it is easy and straight forward!