Nikolai Timofejev
15 years in FinTech and payments. Maps your business model to the right licence scope and leads the file all the way to the Labuan FSA decision, including banking and payment rails.
Get a forex license in Labuan.
Asia's midshore answer to offshore FX: the money broking licence from Labuan FSA - RM1,000,000 paid-up capital, a pure intermediary model with leverage capped at 100:1, a real office and staff on the island, and 3% tax on audited profits under LBATA. Malaysian federal law, offshore economics.
27 yrs
on the international marketon the market
60+
in-house specialistsspecialists
400+
Licenses obtainedlicenses obtained
Updated
Labuan in brief
The midshore broker, defined precisely.
Labuan licenses FX brokerage as money broking: under the Labuan Financial Services and Securities Act 2010 and the September 2024 guidelines, a money broker arranges transactions between buyers and sellers in the money and foreign exchange markets as an intermediary - expressly not as principal, liquidity provider or market maker, and not in CFDs on non-forex underlyings. The entry terms are concrete: RM1,000,000 paid-up capital (RM1,500,000 where digital-asset broking is added), deposited with a regulated bank in Labuan or Malaysia; an operational office in Labuan with staff for finance, compliance and records; at least two board members; client money in segregated accounts with withdrawals honoured within three working days and monthly reconciliation; and retail forex leverage capped at 100:1. The processing fee is US$350, with annual fees per the 2022 fee regulations.
What the definition buys: a licence inside Malaysian federal law - common-law courts, a real regulator, Bank Negara's neighbourhood - at midshore economics, crowned by LBATA's 3% tax on audited trading profits for substance-compliant companies. The hard boundary is the model itself: Labuan is built for STP and agency brokers routing flow to external liquidity, not for dealing desks warehousing risk. For groups that run matched-principal books elsewhere, the Labuan entity is the clean Asian client-facing layer. We build the company, the office, the file and the substance end to end.
Labuan FSA money broking licence (LFSSA 2010, 2024 guidelines): RM1M paid-up (RM1.5M with digital assets), intermediary-only - no market-making or non-forex CFDs, 100:1 leverage cap, segregated client money with 3-day withdrawals, real Labuan office and staff.
LBATA taxes audited trading profits at 3% with substance. The clean Asian STP layer - we build company, office and file end to end.
The two routes
Money broking - classic or with digital assets.
One licence, two scopes: traditional money and FX broking at RM1,000,000 - or the extended scope including digital-asset broking at RM1,500,000. Both purely as intermediary.
Classic FX broking at RM1M - or extended digital scope at RM1.5M.
01 - MONEY BROKING · FX
The classic broker
The core licence: arranging FX and money-market transactions as intermediary at RM1,000,000 paid-up capital. STP routing to external liquidity, client money segregated, leverage capped at 100:1.
The core licence: arranging FX and money-market transactions as intermediary at RM1,000,000 paid-up capital. STP routing to external liquidity, client money segregated, leverage capped at 100:1.
- ✓FX intermediation - STP/agency model
- ✓RM1,000,000 paid-up capital
- ✓Leverage capped at 100:1
- ✓Client money segregated · 3-day withdrawals
- ✓Monthly reconciliation discipline
- ✓No principal dealing or market-making
02 - WITH DIGITAL ASSETS
RM1,500,000 capitalThe extended scope
The same intermediary licence extended to digital-asset broking at RM1,500,000 paid-up capital. Crypto flow arranged at 1:1 leverage alongside the FX book, under one Labuan roof.
Digital-asset broking added at RM1.5M capital, 1:1 leverage, same segregation and intermediary boundary. One licence, both books.
- ✓FX + digital-asset intermediation
- ✓RM1,500,000 paid-up capital
- ✓Digital assets at 1:1 leverage
- ✓Same segregation discipline
- ✓One licence, both books
- ✓Same intermediary-only boundary
Costs and timelines are confirmed for your case before any work begins. The processing fee is US$350; annual fees follow the 2022 amendment regulations and are itemised in your quote.
Why Labuan
Malaysian law at midshore price.
Labuan trades product freedom for standing. The intermediary constraint is the price of the 3% and the flag.
✓
3% on audited profits
LBATA taxes Labuan trading activity at 3% of audited net profits for substance-compliant companies. A published rate on a real audit, not a ruling.Published midshore rate.
✓
A real federal regulator
Labuan FSA operates under Malaysian federal law with published guidelines refreshed in 2024. Banks and counterparties read the licence as supervised, not decorative.Malaysian law, real rules.
✓
Defined, modest entry
RM1,000,000 (~US$210,000) paid-up, US$350 processing, published annual fees. The whole cost stack is knowable before you start.RM1M + US$350 + schedule.
✓
The clean STP frame
The intermediary-only rule matches how most modern retail brokers actually run. Flow routed to external liquidity, no warehouse risk, no conflict.Matches modern brokers.
✓
Client-money discipline
Segregated accounts, three-day withdrawals and monthly reconciliation are licence conditions. Trust mechanics that sell to clients and PSPs alike.Trust as a feature.
✓
Asia's time zone
Kuala Lumpur's hinterland, Singapore's neighbourhood, Asian client hours. The midshore seat for the region's retail flow.The region's midshore seat.
How it compares
How Labuan differs from other routes.
The comparison in plain terms: the most defined offshore-tier licence in Asia. For intermediaries, not dealing desks.
Labuan vs other jurisdictions
| Feature |  Labuan | Other jurisdictions |
|---|---|---|
| Regime | LFSSA 2010 - Labuan FSA | MiFID desks or offshore |
| Model | Intermediary only · 100:1 cap | Principal dealing allowed |
| Capital | RM1M-1.5M paid-up | US$0-2M spread |
| Tax | 3% of audited profits | 0-30% spread |
Regime
LabuanLFSSA 2010 - Labuan FSA
Other jurisdictionsMiFID desks or offshore
Model
LabuanIntermediary only · 100:1 cap
Other jurisdictionsPrincipal dealing allowed
Capital
LabuanRM1M-1.5M paid-up
Other jurisdictionsUS$0-2M spread
Tax
Labuan3% of audited profits
Other jurisdictions0-30% spread
Country by country
| Country | License type | Taxation | Requirements |
|---|---|---|---|
| Labuan | Money broking licence | 3% of audited profits | RM1M, office + staff, 100:1 |
 Seychelles | FSA Securities Dealer | 15%/25% · source-based | US$50k capital |
 Mauritius | FSC Investment Dealer | 15% · 3% effective | MUR 1M, 2 local officers |
 Vanuatu | VFSC Financial Dealer | No corporate income tax | VT 5M deposit |
LabuanLicense typeMoney broking licence
Taxation3% of audited profits
RequirementsRM1M, office + staff, 100:1
SeychellesLicense typeFSA Securities Dealer
Taxation15%/25% · source-based
RequirementsUS$50k capital
MauritiusLicense typeFSC Investment Dealer
Taxation15% · 3% effective
RequirementsMUR 1M, 2 local officers
VanuatuLicense typeVFSC Financial Dealer
TaxationNo corporate income tax
RequirementsVT 5M deposit
Before you apply
Requirements for the Labuan licence.Requirements for the licence.
The 2024 guidelines are specific about capital, office and conduct. The checklist below is what a passing application contains.
01
Labuan company. Incorporated under Labuan law for the money broking business.
02
Paid-up capital. RM1,000,000 (RM1,500,000 with digital assets), deposited with a regulated bank in Labuan or Malaysia.
03
Operational office. A real, furnished office in Labuan; a contact person stationed there.
04
Staffing. Dedicated, competent staff for finance, accounting, compliance and records.
05
Board. At least two board members, fit and proper, with relevant experience.
06
Business plan. The intermediation model, liquidity partners and financials Labuan FSA can interrogate.
07
Client money rules. Segregated accounts, withdrawals within three working days, monthly reconciliation.
08
Product boundaries. Leverage capped at 100:1 for forex (1:1 for digital assets); no principal dealing, market-making or non-forex CFDs.
09
AML/CFT framework. KYC, screening and reporting per Labuan FSA and Malaysian AML law.
10
Substance for LBATA. The employees and annual operating expenditure that keep the 3% rate available.
01
Labuan company, purpose-built.
02
RM1M-1.5M paid up, banked.
03
Real Labuan office, staffed.
04
Two fit-and-proper board members.
05
Interrogable business plan.
06
Segregation + 3-day withdrawals.
07
100:1 / 1:1 caps engineered.
08
No principal dealing - by design.
09
AML per Labuan FSA rules.
10
LBATA substance built in.
Reflects the LFSSA 2010 and the Guidelines on Money Broking Business of September 2024.LFSSA 2010 + guidelines of 09.09.2024.
How it works
From first call to the Labuan FSA register.
01
Scope and strategy
Classic FX or extended digital scope, liquidity partners and group fit. Fixed in writing before any drafting.Classic or digital - fixed.
02
Company and capital
Labuan incorporation, RM1M-1.5M deposited with a regulated bank, board assembled.RM1M+ banked, board set.
03
The application file
Business plan, guidelines pack and client-money architecture. Complete at filing with the US$350 fee.Complete, US$350 fee.
04
Labuan FSA review
Question rounds answered - 3-6 months realistic end to end.3-6 months realistic.
05
Licence and launch
Register entry, office live, annual fee by 15 January each year. The Asian book opens at 3%.3% base, Asia open.
Quick facts
RegulatorLabuan FSA
Paid-up capitalRM1,000,000
With digital assetsRM1,500,000
ModelIntermediary only
Leverage100:1 forex · 1:1 digital
Processing feeUS$350
Realistic timeline3-6 months
Tax3% audited profits
Labuan licenses the model it defines. Building precisely to the guidelines is the entire game, and our job.
On the ground in Labuan
Run from our Labuan office.
Prifinance - Labuan
Labuan · Malaysia
Labuan, Malaysia
01
Labuan company formation
Incorporation, capital deposit mechanics and the corporate layer Labuan FSA expects. Built for the licence from day one.Built for the licence.
02
The Labuan FSA file
Business plan, guidelines compliance pack, client-money architecture. Drafted end to end and defended through the rounds.Guidelines-complete.
03
Office and staffing
The operational office, contact person and staffing plan that satisfy both the guidelines and LBATA substance. One build, two purposes.One build, two purposes.
04
Liquidity and banking
External liquidity relationships and the segregated client-money banking the model requires. Sequenced with the licence.Sequenced with licence.
We also have offices in
Tallinn
Estonia
Roseni 13
Vilnius
Lithuania
Gedimino pr. 2
Prague
Czech Republic
Vlkova 532/8, Žižkov
Dubai
UAE
33 Level, Al Saqr Business Tower
London
United Kingdom
7 Bell Yard
Madeira
Portugal
Rua da Alegria 31, 1F
Istanbul
Turkey
Perpa Ticaret Merkezi, A Blok
Good to know
Taxation of forex brokers in Labuan.
LBATA's 3% on audited profits. A published midshore rate with substance conditions worth building once.
3% of audited net profits
Labuan trading activity is taxed at 3% of audited net profits under LBATA. A flat, published rate on real accounts.Flat, published.
Substance conditions
The 3% requires prescribed substance. Employees and annual operating expenditure in Labuan; the licence's own office rules carry most of it.Staff + opex.
The 24% backstop
Companies failing substance face Malaysia's standard rate. The reason substance is designed in from day one, not retrofitted.If substance fails.
No withholding on dividends
Distributions from the Labuan company flow without withholding. Clean on top of the 3% base.Clean distribution.
Audit as feature
The mandatory audit that sets the 3% base doubles as the governance banks and liquidity partners want to see.Governance banks like.
Treaty considerations
Labuan entities sit inside Malaysia's treaty network with carve-outs by partner. Corridor-by-corridor modelling is part of the build.Corridor by corridor.
Tax summary
Trading activity3% of audited profits
SubstanceStaff + opex required
Without substance24% backstop
Dividend withholdingNone
AuditMandatory
*As of 2026 per LBATA and Labuan FSA. Corridor and owner-level outcomes are modelled per structure.
Turnkey professional support
Experienced lawyers and international consultants.
We provide end-to-end support, from company registration and the application file to regulatory interaction and compliance oversight - with an individualized approach to each client.
Oleksii Kindratenko
Builds the application itself: Labuan company, AML/KYC policy pack, capital structure and tax registrations. His document sets are the reason reviews finish in months, not years.
Eugeniu Bevziuc
First point of contact for international founders. Runs the whole setup remotely, across time zones and languages - from the first call to a live, licensed broker.
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Labuan · Labuan FSA
Launch your forex project in Labuan with expert support.
Full-service assistance - from incorporation to the money broking licence, office, substance and ongoing compliance - run through our Labuan office.
Get a consultation →Free legal opinion
Is Labuan the right fit for your project?
Our legal team will analyze your case at no cost and provide a written legal opinion: which jurisdiction, licence scope, or route fits your business.
Written assessment within 2-5 business days
Request a free conclusion →FAQ
The Labuan forex licence - the questions we hear.
What licence does a forex broker need in Labuan?+
The money broking licence from Labuan FSA under the LFSSA 2010 - arranging transactions between buyers and sellers in the money and foreign exchange markets as an intermediary, per the September 2024 guidelines.
What capital is required?+
RM1,000,000 paid-up capital for traditional money and FX broking, RM1,500,000 where digital-asset broking is added - deposited with a regulated bank in Labuan or Malaysia.
Can a Labuan money broker run a dealing desk?+
No - the licence is expressly intermediary-only: no acting as principal, no liquidity providing, no market-making, and no CFDs on non-forex underlyings. It is built for STP and agency models routing to external liquidity.
What leverage can be offered?+
Forex at up to 100:1 (1% minimum margin); digital assets at 1:1. The caps are licence conditions, engineered into the platform from day one.
What local presence is required?+
A real operational office in Labuan with a stationed contact person, dedicated staff for finance, accounting, compliance and records, and at least two fit-and-proper board members - the same footprint that satisfies LBATA substance.
How are client funds protected?+
Licence conditions: client money in segregated accounts separate from the broker's assets, withdrawals honoured within three working days, and monthly reconciliation - discipline that doubles as a sales asset.
How are Labuan brokers taxed?+
3% of audited net profits under LBATA for substance-compliant trading activity, with a 24% backstop for those failing substance; no withholding on dividends. The mandatory audit sets the base.
How long does licensing take?+
Realistically 3-6 months end to end - company, capital deposit, office and the Labuan FSA's question rounds. The US$350 processing fee accompanies the application; annual fees run per the 2022 regulations, due by 15 January.
Labuan or a pure offshore licence?+
Labuan buys Malaysian federal law, a defined rulebook and the 3% audited regime at the cost of the intermediary constraint and a real office. Dealing-desk models need a different flag; STP models rarely find a better one in Asia.
Why Prifinance for Labuan?+
A Labuan office, the 2024 guidelines built into our templates, substance engineered once for both the regulator and LBATA, and liquidity and banking sequenced with the licence.
What licence?+
Labuan money broking.
Capital?+
RM1M; RM1.5M digital.
Dealing desk?+
No - intermediary only.
Leverage?+
100:1 FX; 1:1 digital.
Presence?+
Real office, staff, 2 board.
Client money?+
Segregated, 3-day, monthly.
Taxes?+
3% audited; 24% backstop.
How long?+
3-6 months realistic.
Vs offshore?+
Rules and 3% vs freedom.
Why you?+
Substance once, both masters.
Client notes
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Founders who wanted it done right.
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Prifinance is an independent law and advisory firm. We are not a regulator and are not affiliated with, endorsed by, or acting on behalf of the Labuan Financial Services Authority (Labuan FSA) or any other public authority. Authorisations are granted by, and obtained directly from, the competent authorities.