The Structure of a Labuan foundation

Structure of a Labuan foundation

Labuan, a special region of Malaysia, provides an attractive taxation scheme for foreign business owners and investors. One can set up an entity in Malaysia by incorporating a foundation, a legal entity in which the company’s management can conduct charitable or non-charitable activities. With this, a Labuan foundation will hold the rights on the entity’s assets and our team of company formation representatives in Malaysia are able to offer assistance for the incorporation requirements.

Types of foundations in Labuan
The applicable legislation available in Labuan offers several categories of Labuan foundations. The foundations in Labuan can be set up for charitable or non-charitable purposes, but foundation can also be used for wealth management purposes or asset management.

Register a private foundation in Labuan
A private foundation in Labuan can be set up for wealth management purposes. The legal entity must be registered with the Labuan Financial Services Authority, which functions under the regulations of the Ministry of Finance in Malaysia.

The taxation of the foundation will be performed under the rules of the Income Tax Act if the foundation has assets which can be considered Malaysian property. The foundation is exempted from paying withholding tax, capital gains tax and inheritance tax.

We invite you to contact our team of consultants in company formation in Malaysia for more details related to the registration of a Labuan foundation.