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Labuan mutual funds which can either be in the form of public fund or private fund can be structured as a Labuan company, a corporation incorporated under the laws of any recognized country or jurisdiction, who is a member of the International Organisation of Securities Commissions (IOSCO), a partnership, a protected cell company, a foundation or a unit trust.
The permitted activities of a licensed Mutual Funds including Islamic Mutual Funds are as follows:
Labuan Private Fund
Are securities that are not offered to the general public and are owned or held by:
- Not more than 50 investors where the first-time investment of each of such investors is not less than RM250,000 equivalent in any foreign currency; or
- Any number of investors where the first-time investment of each such investors is not less than RM500,000 equivalent in any foreign currency.
Prior to the launching of Labuan private funds, lodgment of information memorandum must be affected through either one of the licensed entities, i.e. Labuan trust company, Labuan bank including Islamic bank, Labuan investment bank including Islamic Investment bank or Labuan fund manager.
Labuan Public Fund
Are securities that are offered for subscription to any member of the general public.
A public fund lawfully registered under the laws of any jurisdiction, who is a member of IOSCO, need not be registered as a public fund so long as the public fund is administered or managed in Labuan by a fund administrator, a custodian, a trustee or a fund manager, who is licensed, registered or eligible to do so under LFSSA and/or LIFSSA.
However, it shall notify Labuan FSA of its operations in the Labuan IBFC and lodge a prospectus of the public fund which shall include the minimum information.
Labuan Private Fund
For the eligibility of the applicant, the following needs to be submitted:
- Submit an audited financial statement of its promoter and fund manager, where applicable, for the three preceding years along with the lodgment of information memorandum.
- A private fund may appoint its fund manager, fund administrator or other service providers.
- The shareholder and every members of the Board of the private fund including any other relevant person must be fit and proper persons in accordance with the Guidelines on Fit and Proper Person issued by Labuan FSA.
- Comply with relevant and laws and regulations in the jurisdictions where it intends to operate including obtaining the necessary approval.
Labuan Public Fund
For the eligibility of the applicant, the following needs to be submitted:
- An applicant of a public fund must submit a duly completed application form and all the relevant supporting documents as stipulated in the Form LSCM.
- The submission of the memorandum and articles of association/partnership agreement/trust deed/charter/other constituent document as the case may be of the fund.
- Names, addresses, profiles and relevant experience of the director/general partner/designated partner/trustee/council member of the fund (Board of the public fund), whichever applicable. The appointment of any members of the Board of the public fund requires prior written approval from Labuan FSA.
- Profile of the promoter/custodian/trustee/fund manager, whichever applicable.
- Audited annual account of the promoter and fund manager, where applicable, for the three preceding years along with the application.
- The profile of the qualified person as its Shariah adviser in the case of Labuan Islamic public fund.
- A signed declaration by the Board of the public fund on confidentiality and secrecy in regard to the operations and administration of the fund.
- A certificate from an expert as required that includes a statement certifying that the Labuan the Guidelines.
- A copy of the prospectus of the Labuan public fund which should comply with the guidelines, either in draft or final form.
Labuan Private Fund
There is a one-off lodgment fee of RM2,000 for each information memorandum lodged with Labuan FSA.
If the Labuan private fund uses a structure based on a protected cell company (PCC) incorporated under the Labuan Companies Act 1990, the annual fee payable are as follows:
- RM5,000 (General assets or “Core”); and
- RM2,000 (Each cell)
Subsequent payment of annual fee for Labuan private fund using PCC structure is payable not later than 15 January of each year during which the registration is valid.
Labuan Public Fund
There is a lodgment fee of RM2,000 for each prospectus registered with Labuan FSA and an annual fee of RM2,000.
If the Labuan public fund uses a structure based on a protected cell company (PCC) incorporated under the Labuan Companies Act 1990, the annual fee payable are as follows:
- RM5,000 (General assets or “Core”); and
- RM2,000 (Each cell)
Subsequent payment of annual fee for Labuan private fund using PCC structure is payable not later than 15 January of each year during which the registration is valid.
No capital requirements for both Labuan Private Fund and Labuan Public Fund companies.
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