Japan
Cambodia
Kazakhstan
KyrgyzstanNikolai 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.
Investment license in Labuan: Labuan FSA licence.
An investment license in Labuan takes one of two forms, and the Labuan FSA grants both under the Labuan Financial Services and Securities Act 2010. A securities licensee advises on and deals in securities with RM150,000 of paid-up capital. A fund manager runs public funds on RM300,000. Either application costs US$500. Tax is 3% of audited profits for a company with real substance in Labuan.
30 yrs
of experienceof experience
60+
in-house specialistsspecialists
400+
Licenses obtainedlicenses obtained
Updated · Reviewed by the Prifinance team
Labuan in brief
Investment license in Labuan: the mid-shore that Malaysia stands behind.
Labuan licenses investment business through the Labuan FSA under the Labuan Financial Services and Securities Act 2010 (Act 704). For an investment firm, two of its licences matter. A securities licensee gives investment advice, provides administrative services and deals in securities, including quoting two-way prices, on paid-up capital of RM150,000 unimpaired by losses; it may not hold clients' money or assets. A fund manager runs public funds on RM300,000, and once assets under management pass RM150 million it adds capital of 0.2% of the excess. Filing either application costs US$500. The Labuan FSA client charter sets 30 working days to process it, 15 on the fast track for US$1,500, and a new licensee then pays US$2,500 a year as a securities licensee or US$3,000 as a fund manager.
The commercial case is the pairing of standing and rate: Labuan is Malaysian federal territory - a mid-shore inside a G20-adjacent economy, not a freestanding island, and the LBATA system taxes trading activity at 3% of audited profits, conditional on real substance: staff on the island and operating expenditure that auditors verify, with a 24% backstop for structures that fake it. Add no dividend withholding and mandatory audit, and the result is an Asian base that banks read as Malaysian. For advisers, securities dealers and fund managers who want the 3% with a real flag behind it, Labuan is the measured mid-shore. We build the file end to end.
Malaysia's mid-shore, two Labuan FSA licences under the LFSSA: securities licensee on RM150,000 paid-up, fund manager on RM300,000. US$500 to apply, 30 working days by charter, mandatory audit.
3% of audited profits with real island substance - 24% backstop without it. Malaysian standing, Asian hour. Built end to end.
Two investment licences
The securities licensee - or the fund manager.
One Act, two licences, and the business plan decides between them. Advice and dealing in securities sit with the securities licensee, while managing a public fund takes the fund manager licence and a Labuan company to hold it. We build that file.
Securities licensee from RM150,000 - or fund manager from RM300,000.
01 - SECURITIES LICENSEE
Advice and dealing
Investment advice, administrative services and dealing in securities, two-way prices included, on RM150,000 of paid-up capital unimpaired by losses. The licensee may not hold clients' money or assets, so custody stays outside it.
Investment advice, administrative services and dealing in securities, two-way prices included, on RM150,000 of paid-up capital unimpaired by losses. The licensee may not hold clients' money or assets, so custody stays outside it.
- ✓Advice, administration, dealing
- ✓RM150,000 paid-up
- ✓No client money or assets
- ✓US$500 to apply
- ✓US$2,500 a year
- ✓30 working days by charter
02 - FUND MANAGER
Public funds
Management of public funds by a Labuan company, on RM300,000 of paid-up capital plus 0.2% of assets under management above RM150 million. A manager of private funds only needs no licence, though it may apply for one.
Public funds on RM300,000 paid-up, plus 0.2% of AUM above RM150 million. Private-fund managers need no licence.
- ✓Public fund management
- ✓RM300,000 paid-up
- ✓+0.2% of AUM above RM150 million
- ✓US$500 to apply
- ✓US$3,000 a year
- ✓Private-fund managers exempt
Capital per the Labuan FSA guidelines for securities licensees and for fund managers (para 8.1 in each), fees per the Labuan FSA fee schedule 2026. Money broking is a separate licence: RM1,000,000 of paid-up capital, RM1,500,000 with digital asset activities, and the broker may not act as principal. Our forex licence page for Labuan covers it.
Why Labuan
Six reasons desks choose the mid-shore.
✓
A real flag
Malaysian federal territory, not a freestanding island. Banks and counterparties read Labuan as Malaysia, and price it accordingly.Reads as Malaysia.
✓
3% that survives audit
LBATA taxes audited profits at 3% with real substance. The rate is defensible because the audit is mandatory.Defensible by design.
✓
A published clock
The Labuan FSA client charter sets 30 working days for a securities licensee or fund manager application, 15 on the fast track at US$1,500. You can plan a launch date against it.30 working days.
✓
Asian time zone
Kuala Lumpur's hour, Singapore's neighbourhood. The desk sits where Asian mandates actually trade.Where mandates trade.
✓
Proportionate entry
RM150,000 of capital for a securities licensee, RM300,000 for a fund manager, US$500 to apply. Mid-shore standing at costs an emerging firm can carry.From RM150,000.
✓
The 24% backstop
Structures without substance pay onshore rates. The regime polices itself, which is why the 3% keeps its meaning.Self-policing regime.
How it compares
How Labuan differs from other routes.
Side by side: the mid-shore trade. Licence capital from RM150,000, real substance and a yearly audit, in exchange for 3% with a real flag.
Labuan vs other jurisdictions
| Feature |  Labuan | Other jurisdictions |
|---|---|---|
| Regime | LFSSA - Labuan FSA | Island dealer licences |
| Client money | Securities licensee holds none | Often held, under client-money rules |
| Tax | 3% audited · 24% backstop | 0% untreatied or 15%+ |
| Standing | Malaysian territory | Freestanding islands |
Regime
LabuanLFSSA - Labuan FSA
Other jurisdictionsIsland dealer licences
Client money
LabuanSecurities licensee holds none
Other jurisdictionsOften held, under client-money rules
Tax
Labuan3% audited · 24% backstop
Other jurisdictions0% untreatied or 15%+
Standing
LabuanMalaysian territory
Other jurisdictionsFreestanding islands
Country by country
| Country | License type | Taxation | Requirements |
|---|---|---|---|
| Labuan | Securities licensee, fund manager - LFSA | 3% audited profits | RM150,000 / RM300,000 capital |
 Mauritius | Investment dealer - FSC | 15% · 3% effective | MUR 1M, 2 officers |
 Seychelles | Securities dealer - FSA | 15%/25% source-based | US$100,000 capital |
 Singapore | MAS CMS licence | 17% + incentives | S$1M-S$5M base capital |
LabuanLicense typeSecurities licensee, fund manager - LFSA
Taxation3% audited profits
RequirementsRM150,000 / RM300,000 capital
MauritiusLicense typeInvestment dealer - FSC
Taxation15% · 3% effective
RequirementsMUR 1M, 2 officers
SeychellesLicense typeSecurities dealer - FSA
Taxation15%/25% source-based
RequirementsUS$100,000 capital
SingaporeLicense typeMAS CMS licence
Taxation17% + incentives
RequirementsS$1M-S$5M base capital
Asia and the Middle East
Investment licences in neighbouring jurisdictions
All 113 investment licence jurisdictions →
Investment license cost: capital, official fees and timelines by country →
How to get an investment license: types, requirements and process →
Asset management and fund management license: regimes compared →
Broker-dealer and securities dealer license: regimes compared →
Before you apply
Investment license requirements in Labuan: what the Labuan FSA checks.Investment license requirements in Labuan.
The Labuan FSA licenses the firm it can audit. The checklist below is what a passing file contains.
01
Labuan company. Incorporated in the territory for the licence.
02
Paid-up capital. RM150,000 for a securities licensee; RM300,000 for a fund manager, plus 0.2% of assets under management above RM150 million. Unimpaired by losses, with its source evidenced.
03
Licence scope. Advice, administration or dealing in securities, or management of public funds, matched to the business plan.
04
Fit-and-proper directors. Clean histories, vetted to ultimate-owner level.
05
Business plan. Clientele, venues and projections the Authority can test.
06
Substance on the island. Staff and operating expenditure that the LBATA audit will verify.
07
Compliance function. Named officers with documented procedures.
08
Client assets. A securities licensee may not hold clients' money or assets; the file shows where they will sit.
09
Mandatory audit. A Labuan-approved auditor engaged from day one.
10
AML/CFT programme. Malaysian framework with a named officer.
11
Office and shareholders. A registered office in Labuan. For a securities licensee, prior Labuan FSA approval of each director and shareholder, and written consent for any later change of ownership (LFSSA s. 57(3)).
01
Labuan company built.
02
RM150,000 / RM300,000 paid.
03
Licence scope set.
04
Directors vetted clean.
05
Testable plan filed.
06
Island substance sized.
07
Compliance officers named.
08
Client assets held outside.
09
Auditor engaged day one.
10
AML programme live.
11
Office and owners cleared.
Reflects the LFSSA, the Labuan FSA guidelines for securities licensees and for fund managers (both updated 20 June 2025) and the 2026 fee schedule. The substance requirements serve both the licence and the 3% rate. One build, two purposes.LFSSA + 2025 guidelines; 2026 fees.
Verify it yourself
Official sources
Regulator pages, legal texts and public registers the figures on this page are based on.
- RegulatorLabuan FSA - Capital markets: Labuan fund managers and securities licenseeslabuanfsa.gov.my
- LawLabuan Financial Services and Securities Act 2010 (Act 704), reprint as at 15 October 2022: Parts III and IV - Labuan FSAlabuanfsa.gov.my
- RegisterLabuan FSA - Financial institutions directory (list: Fund Managers)labuanfsa.gov.my
- GuidanceLabuan FSA - Guidelines on the Establishment of Labuan Securities Licensee including Islamic Securities Licensee (updated 20 June 2025)labuanfsa.gov.my
- GuidanceLabuan FSA - Guidelines on the Establishment of Labuan Fund Manager (updated 20 June 2025)labuanfsa.gov.my
How it works
From first call to the Labuan FSA register.
01
Licence and scope
Securities licensee or fund manager, and the capital that choice brings - settled before the build.Activities scoped.
02
Company and substance
Labuan entity, capital paid, island staffing and expenditure planned to audit standard.Audit-ready build.
03
The application
The Labuan FSA file at US$500 processing. Complete at submission.US$500, complete.
04
Examination
The client charter sets 30 working days, 15 on the fast track for US$1,500. Queries answered on schedule.30 working days by charter.
05
Licence and launch
Register entry, banking live, audit engaged. The mid-shore desk operating at 3%.Desk at 3%.
Quick facts
RegulatorLabuan FSA
Securities licenseeRM150,000 paid-up
Fund managerRM300,000 paid-up
Annual licence feeUS$2,500 / US$3,000
Processing feeUS$500
AuditMandatory
Client charter30 working days, 15 fast track
Tax3% audited profits
Substance is the hinge: the same staffing and spending that satisfy the licence defend the 3%. We size it once, correctly.
On the ground in Labuan
Run from our Labuan office.
Prifinance - Labuan
Labuan · Malaysia
Labuan, Malaysia
01
Model and structure
The licence, the activities it covers and the capital behind them, designed together. Licence and LBATA outcome as one system.One system with LBATA.
02
The Labuan FSA file
Plan, compliance and capital evidence. Complete at filing, answered through examination.Complete at filing.
03
Substance build
Island staffing and expenditure structured to pass the audit that defends the 3%. Real, sized, documented.Sized to audit.
04
Banking and launch
Malaysian and regional banking, custody and venue relationships. The desk live in the Asian hour.Banked as Malaysian.
We also have offices in
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 investment firms in Labuan.
The LBATA bargain: 3% of audited profits for real operations - 24% for pretenders.
3% of audited profits
Trading activity under LBATA taxes at 3% of net audited profits. The mid-shore rate with a real flag behind it.The mid-shore rate.
Substance conditions
Island staff and operating expenditure are statutory conditions. The audit verifies both, annually.Staff + opex verified.
24% backstop
Structures that fail substance pay Malaysian onshore rates. The regime polices its own credibility.Pretenders pay full.
No dividend withholding
Distributions leave clean. Holding structures above the desk stack without leakage.Clean stacking.
Mandatory audit
Every licensee audits. The cost that makes the 3% defensible in front of any tax authority.The defence itself.
Malaysian treaty access
Treaty positions run through Malaysian membership where applicable. Mapped per structure at design.Via Malaysia, per case.
Tax summary
Trading activity3% of audited profits
SubstanceStaff + opex required
Without substance24% backstop
Dividend withholdingNone
AuditMandatory
*Figures as of 2026 per LBATA and Labuan FSA guidance. Substance sizing and treaty 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 desk.
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Request a free conclusion →FAQ
The Labuan investment licence: frequent questions.
What license does an investment firm need in Labuan?+
That depends on what it will do. Advice and dealing in securities need a licence as a Labuan securities licensee, and so do administrative services in respect of securities. Managing a public fund needs a fund manager licence, held by a Labuan company. The Labuan FSA grants both under the LFSSA 2010.
What capital is required?+
RM150,000 of paid-up capital for a securities licensee and RM300,000 for a fund manager, both unimpaired by losses. Once a fund manager's assets under management pass RM150 million, it adds 0.2% of the excess. The applicant evidences both figures and their source.
Is this the Labuan money broking license?+
No. A money broker needs RM1,000,000 of paid-up capital, or RM1,500,000 with digital asset activities, and may only mediate, never act as principal. That is a separate licence for the money and foreign exchange markets, and our forex licence page for Labuan covers it.
How does the 3% tax work?+
LBATA taxes trading activity at 3% of net audited profits, conditional on real island substance - staff and operating expenditure the mandatory audit verifies. Structures without substance pay the 24% backstop.
How long does an investment license in Labuan take?+
The Labuan FSA client charter gives 30 working days for a securities licensee or fund manager application, or 15 on the fast track for an extra US$1,500. For a fund manager the Act sets no deadline: under s. 44 the Authority may grant or refuse the licence and attach conditions. The file comes first, and substance planning decides its pace.
Why does Malaysian standing matter?+
Labuan is Malaysian federal territory - banks, custodians and counterparties treat the desk as Malaysian, not island-flagged. That reading opens accounts and relationships pure offshore struggles to reach.
Can a securities licensee hold client money?+
No. The guidelines bar a Labuan securities licensee from holding clients' monies or assets (para 1.3). It may still advise, administer and deal, and that includes quoting two-way prices. Client cash and securities stay outside the licensee.
What substance is required?+
Statutory: staff employed on the island and operating expenditure at levels the annual audit verifies - the same build that satisfies the licence defends the 3%. We size it once, correctly.
Does a private fund manager need a license in Labuan?+
No. Under s. 40(3) LFSSA, a manager running private funds only is not required to be licensed, though it may apply. A private fund has at most 50 investors, each putting in at least RM250,000 at first investment, or any number of investors with at least RM500,000 each (s. 2(1)). A public fund needs the licence, or the Authority's written permission for a manager authorised in a recognised jurisdiction or a bank licensee (s. 40(2)).
Why Prifinance for Labuan?+
We match the licence to the business before anything is filed, then size substance to audit standard and set up the LBATA outcome from day one. The mid-shore build, done properly.
What license?+
Securities licensee or fund manager.
Capital?+
RM150,000 / RM300,000.
Money broking?+
Separate licence, from RM1M.
The 3%?+
Audited, substance-backed.
How long?+
30 working days by charter.
Why Malaysia?+
Banks read the flag.
Client money?+
Licensee holds none.
Substance?+
Staff + opex, audited.
Private fund?+
No licence needed.
Why you?+
Sized once, correctly.
Client notes
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