Labuan Forex License

Labuan is a federal territory of Malaysia, located of the coast of the Asian nation. The island’s capital, Victoria, has long been recognized as an offshore financial center offering international financial services. Located in Victoria, the Labuan International Business and Financial Centre was created specifically to be an offshore business hub offering attractive tax rates and an array of cost-effective financial service licenses, including the Labuan Forex License.

Companies operating out of Labuan are lightly regulated and taxed. Profits are taxed at a rate of three (3%) percent or at a flat rate of MYR 20,0000 (approximately $4,500). The island nation is also renowned for its asset protection framework, with a restriction against the domestication of foreign judgments. As a well-respected international financial center, sophisticated financial service professionals are drawn to Labuan in order to establish financial services firms.

Labuan is an ideal jurisdiction for starting a forex business. The territory of Labuan offers a Forex Money Broker License which covers all related forex activity, including the trading of cryptocurrencies. The robust license is recognized worldwide as a premier forex license. The capitalization requirement of approximately $120,000 is low compared to other leading jurisdictions. Moreover, the license can be obtained through a streamlined process in a matter of 3 to 4 months.

 

 

Advantages of a Labuan Forex License

Aggregate daily trading volume in the forex markets exceeds $4 trillion. The streamlined and cost-effective process in obtaining a Labuan Forex license can place you in this lucrative market in as little as three months. With increased volatility in the global currency markets, spreads have increased – and with that so have forex brokers’ profitable to the tune of over $1 billion annually. As such, smaller forex brokers are capturing tremendous returns owning just a small piece of this lucrative market.

Labuan Forex License at a Glance

 License Money Broking License
 Time to License 3 to 4 Months
 Capital Requirement Approx. $120,000
 Tax Structure 3% tax on profits or MYR20,000

Labuan Forex License Package

  • Incorporation of Labuan international business corporation
  • Arrange for local registered officer, local directors and local office
  • Draft corporate bylaws, minutes and owner share issuances
  • Establishment of corporate bank account suitable for forex operations
  • Establishment of merchant service account for accepting credit and debit cards, as well as e-money and cryptocurrency
  • Draft requisite business plan, financial statements and financial projections
  • Draft requisite Anti-Money Laundering & Know-Your-Customer policies
  • Arrange for requisite surety bond
  • Prepare and process application for Labuan Money Broking License
  • Representation before licensing regulatory authority, banks and liquidity providers
  • Arrange for service providers such as software, affiliate networks and local auditors
  • Arrange for service agreements with forex prime brokers, banks and liquidity providers
  • Ongoing legal and compliance support

Contact the Labuan Forex License Experts

Trust our over fifty year’s combined experience in creating innovative solutions for our clients. Contact the forex
licensing experts at FinLaw to begin the process of obtaining your Labuan Forex License today.
Our knowledgeable and skilled professionals are pleased to answer any of your questions.

Call (213) 534-8656 for your free consultation or contact us here.