Eternity Law International — News — Forex Broker License in Labuan

Forex Broker License in Labuan

Published:
October 8, 2020

All types of activities being present in financial market-space must be officially-licensed, particularly, Forex-brokers in any country. Entrepreneurs who work in binary options or Forex-industry may become owners of the official Labuan Forex license. With this permit, you can prove your superiority in the global market and gain more trust from customers.

Our firm has been working in the field of registering and licensing organizations worldwide for many years. We offer comprehensive services, including full support for our clients at every stage of obtaining permits. We work with hundreds of countries, particularly, we help in getting a Forex-license in Czech, Mauritius, Vanuatu and others. With us, your business-project will be in safe professional hands.

FX broker license requirements in Labuan

Local Financial Services Authority sets a number of normative points on candidates for brokerage-activities licensing.

  1. Organization officially-established in jurisdiction.
  2. Minimum starting capital is 128 thousand dollars. The entire amount must be deposited with a Malaysian banking establishment.
  3. Physical presence locally. International firms need an office and a minimum of two local employees.
  4. A stable reputation of a firm wanting to license Forex-activities. It’s essential to bear in mind next-mentioned: application for a license is allowed to be submitted remotely, but the beneficiary will have to get to jurisdiction to be interviewed by regulative authority – the FSA. This competent body not only issues permits to run activities, but also controls work of license-holders. The FSA ensures that all businesses that are authorized to engage in Forex-business operate in accordance with relevant normative points and rules.
  5. One shareholder (it may be a company registered in any country).
  6. Two directors. Each of them does not have to be permanently resident in the country.
  7. Organizations need to have an account in Malaysian bank.
  8. It is important to hire professional auditor who will send reports for year-period to regulatory bodies. Bookkeeping must be kept in the territory of jurisdiction.
  9. Firm’s name must meet the criteria of the jurisdiction and have the ending required by jurisdiction.

Consider document list that is needed to be provided to regulatory authorities for certifying Forex activities in Labuan:

  • a copy of the applicant’s passport certified by an authorized notary;
  • confirmation of local presence – account statements, payment of utility bills, etc.;
  • resume, which indicates the experience of conducting activities, education and other data of the applicant;
  • confirmation of professional background and expertise of directors;
  • recommendations from a lawyer, accountant and banking establishment;
  • business-plan for the next few years.

In addition, regulator may request additional information and documentation, such as a draft agreement between organization and service providers, proof of residence, resumes of each director, etc. It is important to draw up a business-plan in great detail, with financial predictions, notes and annexes, a breakdown of assets and profits, costs and liabilities.

Our experts will help you bring your company into correspondence with rules and regulations. We will make sure all documentation is collected and compiled correctly, which excludes the possibility of getting a refusal from the regulator.

Types of Forex-licenses in Labuan

One type of Labuan Forex license is provided. LOFSA is institution controlling offshore industry in Labuan. Regulative basis takes place under laws on securities and financial services.

Broker-services are interactions between a seller and a buyer in the currency market, where a commission fee is given as a reward for intermediary services. Holder of Labuanian license is an intermediary-party, not a principal.

Benefits of a Labuan FX broker license

You may get a permit to run brokerage-activities in Labuan in about 3-4 months after you submit all the required documents. Consider the privileges of the Labuan Forex-license over other spaces.

  1. Low tax rates, which is quite beneficial especially for start-up entrepreneurs.
  2. Permit to open a bank account in jurisdiction. But personal presence in this case is required.
  3. Tax incentives for resident companies under the Malaysian double tax treaty.
  4. Confidentiality of data about the owners and shareholders of enterprise. Nevertheless, it needs to be noted that at the same time, information about the directors is partially admissible.
  5. This brokerage-license is equivalent to European one, which opens up admission to global market-space and profitable partnerships.

How to get Labuanian Forex broker license

Whole process is implemented in several stages.

  1. Direct organization registration.
  2. Banking account opening for keeping corporate money and then a personal visit for an interview at the bank. The account is opened within 1-1.5 months. You also need to apply for online banking.
  3. Preparation of all necessary documentation, as well as the passage of a comprehensive check. The whole process takes up to 2 weeks.
  4. The next step is to file an application with the regulator. Consideration takes up to 1 month. The regulator will call the beneficiary for an interview.
  5. Then the company will receive a temporary work permit, which is active within 3 months. Before this stage, it is imperative to come up with and reserve the name of the enterprise in accordance with the local standards.
  6. Getting a full Forex-license.

Our lawyers accompany you at every stage of the process. We’ll take care of all the most complex aspects and interaction with the regulator. We also work in other areas, in particular, with crypto licenses in France, gambling permits in Malta and other niches and spaces.

labuan forex license

Taxation of Forex-companies in Labuan

Jurisdiction possesses status of a “free port”. There are no government import duties and there is no tax on the sale of goods in the amount of 500 thousand ringgit per year. Also, firms that are registered in the country receive benefits for the income tax of employees from other countries. If foreign employees in an ordinary Malaysian company pay 28% income tax, then in a Labuan company it is only 14%.

But a foreign director of an offshore company is completely exempt from income tax in Labuan.

Our services

Experts of our company are highly-professional and competent in their sphere. They’ll help resolve any issues related to the registration of a Forex-company and getting a permit to function in Labuan and other countries. In addition, you’ll receive full support throughout the entire licensing process.

  1. Opening enterprises worldwide.
  2. Licensing and obtaining other permits.
  3. Collection and completion of documentation.
  4. Banking and merchant accounts opening.
  5. A large list of corporate service ranges: finding and renting an office, recruiting and hiring employees, compiling reports, etc.
  6. Shelf companies and licenses for sale.
  7. Consultations on any relevant issues.

We guarantee prompt and high-quality results. You can book a consultation with our specialist right now.

How much is a Forex-license in Labuan?

Cost of licensing depends on various factors, so it is calculated individually for each client. Our experts will help you calculate potential costs, while making every effort to optimize your budget.

Our advantages

Our company has been present on international market for a long time and has an excellent reputation and many grateful customers. They come back to us to open new branches and expand to other jurisdictions.

  1. High level of professionalism. Each employee of our company is an expert with many years of experience.
  2. Thousands of grateful customers.
  3. Large list of corporate services.
  4. Maximum results in the shortest time.
  5. Individual approach to resolving each issue.
  6. The desire to use the latest technological and software solutions in its activities.

With us you will get the most favorable terms of cooperation and save not only your money, but time and nerves. Trust our professionals!

Do Forex traders need a license in Labuan?

A Labuan Forex license is an official permit for companies, giving them the right to act as participants in the Forex market. In addition, a Forex license also allows you to carry out various operations and transactions within a given market, and offer clients certain Forex services. The specific list of such services depends on the type of permit. Traders who do not have this permit are not allowed to trade or trade in the Forex market and may receive a fine.

How is Forex regulated in Labuan?

The regulator that controls the Forex market in this jurisdiction is the FSA. The regulator monitors the activities of Forex brokers and issues appropriate licenses. Companies must demonstrate to the FSA that they meet established criteria and requirements. If all regulatory points are followed correctly and completed in full, the issuance of a Labuan Forex license will be approved.

Is Forex trading legal in Labuan?

In order to legally carry out transactions on the Forex market in this jurisdiction, you need to obtain a license. Labuan Forex license gives the right to offer your services officially and without restrictions. The issuance of a license will be approved by the regulator only if the applicant meets all established regulatory parameters.

How much does a Forex license cost in Labuan?

The total cost of obtaining a Labuan Forex license is calculated individually in each case. Our specialists will make a calculation for you, taking into account your commercial requirements and initial budget. Contact us in a way convenient for you.

labuan forex license

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