If you are looking for new business opportunities abroad, we recommend you considering not only countries but also their regions. For example, the Labuan region in Malaysia.
Labuan is a federal territory with an independent tax and business law systems. It is situate between Malaysia, the Sultanate of Brunei and the Philippines, so you will easily set up a business in these areas.
Today Labuan is recognize as an offshore zone and financial center of Asia. Its main advantages are connect with low taxation and the absence of undue attention from leading states.
Labuan advantages:
- few types of legal entities to choose from;
- no requirements to the residence – you can operate a business without the manager from Labuan;
- no requirements for the share capital;
- no requirements for the reporting;
- offshore companies in Labuan have a special tax status. There are two types of activities that determine the tax regime of an offshore company: trading and non-trading company;
- 3% tax;
- sales tax, excise and export-import duties are not charged;
- close location to Hong Kong and Singapore.
TYPES OF LICENSES
This region is ideal if you plan to get a banking license. There are 2 types of licenses:
- bank license
- investment bank license.
They cover the same activity, but with slight differences. For example, by the investment license, you can not receive a deposit.
HOW TO GET A LICENSE?
The procedure for obtaining a license is quite simple. The Labuan Financial and Securities Act 2010 regulate it. It is quite complete and includes all possible nuances that arise in the process of registering a new business.
The issuance of licenses and control over their further use is the responsibility of the Labuan Financial Services Authority. For business, it is very convenient since all data is stored in one instance and you always know whom to contact if you have problems or need government support.
To get a license you will need a standard package of documents, as well as confirmation of your credit rating and solvency.
It will be better to enter the market in case you already have experience in banking. It will help you to understand the nuances of doing business in Asia, as well as make you a profitable partner for the investors.
A pack of documents should include:
- application with the name of the company;
- business plan for 3 years;
- inforomation on your previous experience;
- if you plan to open a branch of the foreign company, you need to submit an audit for the last 3 years of the business activity;
- personal data of business owners.
A full list of documents with comments can be obtain from the FSA or our specialists. It is always better to submit more documents than required. Especially it concerns those documents that can confirm your solvency, credit rating and your personal experience in banking.
Some documents may be in an arbitrary form, for example, information about your previous experience. However, consult with a specialist before submitting documents. Let him check how correct your documents are. Otherwise, you may lose the chance to get a license.
The term of issuing a license takes up to four months, it is necessary to renew each year. For detailed advice on obtaining a banking license, please contact our specialist.
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