It was only a few years ago that this Federal Malaysian territory caught the eyes of the forex industry. Now numerous brokers have started to take an interest in getting a Labuan Money Broking Forex license. Moderately low capital demands, passage to quality, local banking, and a fast application procedure are just a few causes more brokers are counting a Labuan FX license.
Incorporation & obtaining license: Depends on the license type
Minimum paid-up capital: 92500 Pound (unaffected by losses) or its equivalent in any foreign money (we urge to have approx. 100950,00 Pound as a paid-up capital)
Labuan is an island and fall under Federal Territory of Malaysia. It is inhabited in the South China Sea at the northwest shore of Borneo, north of Brunei and south of Kota Kinabalu, the capital of the state of Sabah.
For several business services, Labuan Malaysia extends one of the effective regulatory frameworks and taxes in Labuan are relatively low (3%).
For beginning money broking business in Labuan, it is asked to obtain a license from Labuan Financial Service Authority (FSA).
There are 3 choices for launching money brokerage company in Labuan:
- have an organized Labuan company in Labuan
- receive local money broker license
- by confirmation of Bank Negara Malaysia (The Central Bank of Malaysia) operate as the authorized organization in accordance with Banking Financial Institutions Act 1989
In order to qualify and keep the license, it is essential prior to appeal for a license to have a great track record of business performance and it is needed to initiate a functional operation of the company in Labuan.
The money broking license allows the brokers to allow only Straight-through processing (STP) trading, but nonetheless, it offers with the opportunity for easier obtaining of a bank account.