Frequently Asked Questions (FAQ)

Labuan port was proclaimed a free port since 1956 and the entire island is designated as a duty free zone.

In addition, because Labuan is in a very important position from a defensive point of view despite being a very small island, Brunei and British rule, and the history governed by the Japanese Army during the wartime and always dominated by other countries.

Labuan has belonged to Sabah state after Malaysia independence, then became Federal Territory in 1984, and became a duty-free port in 1990, and a lot of visitors are coming from neighboring countries such as Brunei or Singapore today.

Labuan belongs to East Malaysia due to geopolitics, on the other hand, Labuan belongs to West Malaysia due to administration since Labuan was designated as Federal Territory of the Malaysian government since 1984.

Due to the existence of this small island, Malaysia’s “geopolitical east-west boundary line” and “administrative east-west boundary line” are different, here is a very interesting place.

Labuan belongs to East Malaysia in geopolitical terms and takes approximately 2 hours and 20 minutes by airplane from the capital Kuala Lumpur. In addition, it is possible to go from Kota Kinabalu in East Malaysia in about 30minites by airplane.

Labuan was founded in 1990 as the International Offshore Financial Centre ("IOFC") and the name has been changed to International Business Finance Center ("IBFC") in January 2008. Labuan is also a place attracting attention as a tax haven in recent years.

IBC is an abbreviation for International Business Company.

The IBC employs a tax incentive system on the condition that domestic transactions are not conducted within its territory, and corporate tax is lower than domestic corporations. All entities established within the Labuan Special Economic Zone are generally classified as IBC.

As an exception, Labuan accepts transactions in Malaysia for professional fees, office rent payments, and employee salary payments. Fiat currency Ringgit is also available.

Labuan Financial Services Authority (Labuan FSA) is a body corporate established to promote and develop Labuan as an international centre for business and financial services.

It is also entrusted to develop national objectives, policies for the development and administration of the international business and financial services in Labuan.

On October 1, 1990, Labuan was declared an International Offshore Financial Centre (IOFC). In an effort to develop Labuan into a successful IOFC, Malaysian Government established Labuan Offshore Financial Services Authority (LOFSA) on February 15, 1996 as a one-stop agency to focus on business development and promotion, process application and supervise offshore activities, and incorporate or register offshore companies.

Labuan International Business and Financial Centre (Labuan IBFC) presents a comprehensive midshore solution (Intermediate service between onshore and offshore) striking the ideal balance between client confidentiality and compliance with international best standards and practices.

Its business-friendly environment, anchored by a simple and attractive tax system, is well-supported by a robust, modern and internationally-recognised legal framework enforced by its regulator, Labuan Financial Services Authority (Labuan FSA).

Labuan IBFC boasts a wide range of business and investment structures facilitating cross-border transactions, business dealings and wealth management needs. These unique qualities offer sound options for regional businesses going global or global businesses looking at penetrating Asia's burgeoning markets.

Strategically located in the heart of Asia Pacific, Labuan IBFC is well positioned to tap into one of the fastest growing regions in the world, presenting the perfect opportunity for businesses seeking to connect with Asia’s economies and beyond.

https://www.labuanibfc.com/

Labuan offers the lowest tax rate financial center in Asia with an effective tax rate of 3%. Compared to Hong Kong (16.5%) and Singapore (17%), we are in a better environment to reinvest profits.

In addition, any company that invests or a foundation that does not conduct business is non-taxable. In this case, the audit is exempted.

A Labuan company refers to a company established in accordance with the Labuan Company Act. 1990 or a company established outside Malaysia as a foreign company registered under the law. It is stipulated you must use the services of the Labuan Trust Company in order to do.

Currently, over 50 trust companies are operating in Labuan.

You can check the details from the following site.

https://www.labuanfsa.gov.my/areas-of-business/labuan-service-providers/trust-companies-and-ancillary-services/list-of-labuan-trust-companies

Labuan companies are obligated to establish a company secretary. "Company secretary" means "the position to prepare and store documents related to corporate registration, and prepare minutes of shareholders' meetings and board meetings". In the case of a Labuan company, a trust company is to perform company secretarial business.

It is possible. However, since the company secretary is an annual contract in principle, it is a business practice that the secretary fee paid before the change is not refunded. Therefore, it is recommended to change at the time of annual renewal.

The trust company may resign from the company secretary if the managed entity violates the contract or the company secretary fees are not paid for a certain period.

Trust officer is a professional who act for beneficiary and has the role and responsibility of a so-called fiduciary, such as a duty of good care and faithfulness.

-STEP 1: Customer due diligence screening by BTC compliance team (1 working day)
-STEP 2: Preparation of incorporation documents & issuance of invoice to client (1 working day)
-STEP 3: Upon payment received and returning of signed incorporation documents & original notarised KYC documents from client. Proceeding for incorporation submission to Labuan FSA (1-2 working days)
-STEP 4: Official Company Registration Certificate received from Labuan FSA (1-2 working day)

Establishment Term : 4-6 working days

Know-Your-Customer (KYC) Documents required for each Director/Shareholder

For Individual (Natural Person):-
1) NRIC (Malaysian) / Passport (Foreigner)
2) Address Proof (e.g: latest Utility bill / Statement that not older than 3 months period)
3) Two (2) Reference Letter issued by professional body (e.g: lawyer, accountant, company secretary, notary public, etc)

For Corporate Entity (Corporation):-
1) Certificate of Incorporation
2) M&A
3) List of Directors
4) List of Shareholders
5) Notice of Registered office address
6) Board Resolution for the appointment of corporate representative for the proposed Labuan Company

*Additional documents may be requested, subject to compliance review.

Kindly contact our support team.

There are Prohibited/Restricted Words Or Phrases to be use as part of name, such as Unfavourable words (i.e: Military, Weapons, Gambling, Fortune Teller, Sex, Drugs etc) , Religious-Related Terms, Federal/State/National Words (i.e: Agency, Municipal, Government, King, Queen, Prince, Princess, Majesty, Crown, etc)

We will check on the availability of proposed name before official name reservation.

BTC's office address will be the registered address: -

Kensington Gardens, No. U1317, Lot 7616, Jalan Jumidar Buyong, 87000 Federal Territory of Labuan, Malaysia.

Yes, and the refund fees will be deducted against the time cost and work done accordingly.

Company Annual Renewal is due by its anniversary incorporation date, and you are require to make the renewal fee payment before the anniversary due date.

For annual renewal, we will continue to renew if you pay based on our invoice.

Kindly contact our support team.

Yes, you may change the company secretary to other service provider, by giving us ONE (1) months termination notice.

Yes, if the renewal fees payment are made later than the annniversary due date, then the penalty will be imposed as follows:-

(i) USD30 : Late Payment between 1-89 day(s)
(ii) USD50 : Late Payment between 90-179 days
(iii) USD400 : Late Payment more than 180 days

Dormant means the Company is not carrying on any kind of business activity (i.e. have not issue any invoice, does not receiving any form of income)

If the company has not conduct any business activity in the entire calendar year (from 1st Jan to 31st Dec), then the company can declare as DORMANT status for that Year of Assessment (declaration to be made during tax return filing period).

Each Labuan Company is oblige to file Tax Return in every Year Assessment, regardless dormant status or active status.

For Dormant-Labuan Trading Business Activities, audit process is still require to be conducted, but no tax payable. For Dormant-Labuan Non Trading Business Activities, only need to submit the Tax Return declaration informing on Dormant status.

Yes, company secretary fees still apply as long as the company exist.

Yes, you may change the company secretary to other service provider, by giving us ONE (1) months termination notice.

Yes, to maintain proper accounting record and made up financial statements for that financial year end.

Audit is optional but the basic financial statement (i.e. management account) must produced.

Discontinue in paying annual fees to Labuan FSA, under Section 151 of Labuan Companies Act 1990 (LCA), and if such name remains struck off continuously for a period of three (3) years, the Labuan company shall be deemed to have been dissolved. Notwithstanding the name of Labuan company has been struck off from Labuan FSA’s register, the company shall continue to remain liable to all fees, license fees and penalties payable under the LCA, including the annual fee plus late payment surcharge thereof. All such fees, license fees and penalties specified above shall have priority over all other claims against the assets of the company.

The strike off process takes time 8 months from the Company's anniversary due date, and the Company is liable to pay 8 months company secretary fees for the period until official struck off notice be issued by the Labuan FSA.

Labuan company is used for the purpose of IBC (= International Business Company). For example, when importing goods from Country A and exporting to Country B, many businesses use it as a relay base for trilateral trade.

Minimum One United States Dollar (or in any other foreign currency other than MYR)

Yes, you may utilize the paid up capital in the corporate bank account for business operating expenses (i.e. salaries, rental, secretary fees).

The fiscal year end can be set freely by law, however most companies set it in December based on Labuan's business customs.

Yes, every Labuan Company is statutorily required to produce and maintain proper accounting and other records to sufficiently explain the transaction and financial position of the Labuan Company.

It is a statutory form which contains all the corporate details of the Labuan Company (i.e. director, shareholder, secretary, share capital, etc) which is required to be lodged with Labuan FSA, at least 30 days prior to its anniversary date of incorporation. Bona Trust Corporation requires each client to verify and final confirm the accuracy of the details prior to lodgement.

Yes, however the taxation for Malaysian company will be restricted on the expenses tax-deductible up to 3% only, the balance 97% require to add-back for tax computation.

Yes, possible.

Yes, but it is extremely difficult to open a bank account and transfer funds (exchange with fiat currency).

Yes, to fulfil the Labuan Economic Substance Requirement.

You may rent an office from any service provider (or you may use BTC's partner contact) in Labuan, the service office package range from workstation to independent office unit, and prices varies.

After having an Labuan office, you may require to hire permanent staff to be your office worker.

Optional, depend on your needs. Marketing office can be set up outside of Labuan island, in any other places of Malaysia.

Prior to the establishment of marketing office, the Company need to have a Labuan operational office first (with full time staff working at the Labuan operational office).

To proceed with the application of marketing, the following are required :-
a) Marketing business plan that illustrates the purpose of the setup of marketing office, its target market/target segment, activities that will be performed at the marketing office, and a three (3) years financial projection (statement of comprehensive income and statement of financial position) of the company with the expansion through the marketing office.
b) Tenancy Agreement of the Labuan Operational Office.
c) Organization Chart of the Labuan operation office & marketing office.
d) Biodata of the managerial person(s) at the marketing office.
e) Address, telephone number, fax number, and Office In-Charge name of marketing office.
NOTE:- Additional information may be requested by Labuan FSA to facilitate the processing of the application.

The marketing office is strictly use for marketing purpose only, such as meeting with client or potential client. No operational function or bookkeeping shall be conducted in the marketing office.

Annual government fee for marketing office is RM7,500 (payable by client upon marketing office approval granted, and subsequently payable by 15th January each calendar year). The marketing office must be an independent office in a premise. (separate door entrance) and must have a presentable signboard outside the office which contain company name & company number.

Reporting Requirement for Marketing Office
• Marketing office is require to submit a Half-Yearly Reporting which contain the Marketing Office’s organization chart & business activities conducted for the past six (6) months, to Labuan FSA on or before the 15th of the following month. (i.e: Reporting Period 1st Jan 20XX to 30th June 20XX, is require to submit to LFSA by 15th July 20XX).
• Provide notification to Labuan FSA within thirty (30) days on any changes to the address of the marketing office being affected including its business plan.

Yes, for contact purpose with BTC, Banks, and Authorities.

It is possible for both Malaysia residents and non-residents.

Minimum One - can be either be an individual or a corporate entity.

Minimum One - can be either be an individual or a corporate entity.

Yes.

Any person or corporate entity may be appointed as director as long as he/it is "fit and proper" and satisfy our due diligence requirement. In principle, it means the person or corporate entity must be sound, not been adjudicated bankrupt, have not at any time been held liable in any civil suit for any fraud or misfeasance and have not at any time been convicted of any offense by any court in relation to his work, business and employment.

1) Certificate of Incorporation
2) M&A
3) List of Directors
4) List of Shareholders
5) Notice of Registered office address
6) Board Resolution for the appointment of corporate representative for the proposed Labuan Company

*Additional documents may be requested, subject to compliance review.

No restriction, but subject to Labuan FSA's approval.

Send instruction to BTC, and we will prepare the documents accordingly.

If add director, we need the KYC documents same as incorporation time:-
1) NRIC (Malaysian) / Passport (Foreigner)
2) Address Proof (e.g. : latest Utility bill / Statement that not older than 3 months period)
3) Two (2) Reference Letter issued by professional body (e.g. : lawyer, accountant, company secretary, notary public, etc)

Death Certificate need to be provided, and BTC shall notify to Labuan FSA.
If it is a Director, then proceeding with removal of the director from the Board.
If it is a Shareholder, then it shall follow the Will / Probate from Court to pass on to the beneficiaries.

A nominee is a proxy person acting on behalf of the actual owner (ultimate beneficial owner "UBO") to held the title as Director or Shareholder in the Labuan Company.

Yes you may use nominee system, subject to BTC compliance satisfactory on the UBO person.

UBO means Ultimate Beneficial Owner, whom is the actual owner of the Labuan Company.

Yes.

Yes.

You may change it by way of allotment of new shares or by way of transferring the existing shares.

Yes, the Act allow a Labuan Company to involve in M&A or transfer of ownership to any other fit and proper person to carry out legal and lawful business, however for licensed entities, any change of structure in the board or equity must obtain approval from labuan FSA before effect the change.

Yes, possible.

Yes, BTC can keep the share certificate for client, and there will be custody fee charges of USD100 per annum.

Subject to Board of Directors' approval, BTC can reissue the share certificate at a fee charge of USD50.

After completing the company registration, we will send you various related documents via email. kindly submit the following documents. If certification is required, kindly contact us.

・ Memorandum and Articles of Association
・ Form 7- Company Registration Certificate
・ Form 13- Return of Allotment of Shares
・ Form 23- Notice of Situation or Changes of Registered Office
・ Form 25- Return on Particulars and Charges of Directors and Secretaries

Foreign company can be the majority shareholder of Labuan company during incorporation time, or after establishment (by transfer of shares).

If the Labuan company is licensed by Labuan FSA, prior approval from Labuan FSA need to be obtain in regard to changes of shareholding.

For Labuan company, a board resolution approving the establishment of foreign company is required. The remaining procedures are varies depend on the foreign subsidiary's jurisdiction requirement.

Yes, redomicile to/from Labuan is allowed.

How to register Paypal account
This section explains how to use PayPal Malaysia for those who will start business activities in Malaysia using a PayPal account in the name of a Labuan company.

In particular, for those who are involved in IT-related businesses, it is expected that there will be cases where a PayPal account will be required, so the following is information on how to authorise a PayPal Malaysia account in the name of a Labuan company.

*The application screen does not allow Labuan entities to be authorised*
Firstly, the registration itself for “PayPal Malaysia” is very easy, but in order to continue using your PayPal account, you need to submit official documents containing (i) the company name, (ii) the registered address and (iii) the date of issue.

However, the various documents of a Labuan company are different from those of a Malaysian company (SDN BHD), and the authentication procedure cannot be successfully carried out according to the PayPal Malaysia manual.

Indeed, there is a page on the application screen for uploading various certification documents, but even if you try uploading the documents from there, the approval will not be accepted due to incomplete documents.

Furthermore, when we inform the email support that we are a Labuan company, they only repeat mechanical answers and do not allow us to proceed with the process.

*Explanation from PayPal Malaysia*
An explanation from PayPal Malaysia is as follows: –

“Proof of business address. This can be a bank statement, utility bill, insurance statement or any document issued by official organization that states your business name, your business address and the issue date of the document. Please note that issue date must be within 6 months time.“

There, it is explained that all of the following documents will be required.

・Form 9（※Not applicable to Labuan corporate documents）
・Form 13
・Form 49（※Not applicable to Labuan corporate documents）
・Memorandum/Article of Association
・Certificate of Incorporation or equivalent

As the above documents are relevant for Malaysian companies, unfortunately some of the relevant documents do not exist for Labuan companies.

*How to pass the certification of a Labuan company*

◇ Calling the support desk - Call the support desk.
◇ Obtaining a dedicated email address - The person in charge will issue you with a dedicated e-mail address.
◇ Send the required documents by e-mail as attachments. - Please send the following 5 documents by e-mail attachment.
◇ Certification procedure complete. - The certification procedure is complete.

To complete the certification process in the name of a Labuan company, please call the support desk and inform them that you are a Labuan company.

You will then be given a dedicated email address to which you can send the certification document file.

Please send an email to that email address with the following five documents attached and the certification procedure will be completed successfully.

List of documents required for certification
・Form 7 (Certificate of Incorporation)
・Form 13 (Allotment of Shares)
・Form 23 (Registered Office Address)
・Form 25 (Particulars of Directors and Secretaries)
・M & A (Memorandum/Article of Association)

*Additional Notes*
Kindly note that the following restrictions apply to receipts made after registering PayPal Malaysia but before activation.

・For sales before activation as an authorised account, withdrawals will only be possible after a 20 days suspension period.

・However, even after activation, sales made before activation will be suspended for 20 days from the date of the sales.

If the amount in suspension reaches a certain amount before the business account is authorised, the sales will be rejected (we do not know the criteria for a certain amount).

In light of the above, for those who are considering using PayPal Malaysia for business in the name of a Labuan company, we recommend that you complete the required documents immediately after opening a PayPal account and receive funds only after the authorisation is completed, in order to avoid the suspension restrictions. We recommend that you complete the verification of the required documents immediately after opening your PayPal account and receive funds only after the verification is completed.

To obtain the necessary documents, please send an email to our representative and we will prepare the necessary documents for you immediately.

Yes, after deduction of transfer out fee (USD200) from the surplus fund and we will refund to your dedicated account.

Labuan Foundation has no concept of capital requirements and can be established from USD 1.

Labuan Foundation has a legal status and can open a bank account, hold property and real estate under the name of the foundation. It is also possible to become a shareholder of another company.

Labuan Foundation ensures robust confidentiality and anonymity, and no information about the Labuan Foundation will be disclosed to the public.

Labuan Foundation can make duration indefinite.

Labuan Foundation does not have the share of the founder, so it can be expected to avoid probation (no inheritance procedure required).

The founder of the Labuan Foundation can continue to place the Foundation under his command and supervision by appointing him / her as a council of the Foundation.

Since the founders of the Labuan Foundation have no interest, the assets donated to the Foundation will be completely separated from their own assets (bankruptcy isolation function).

Distribution to Labuan Foundation beneficiaries is tax exempt in Labuan.

* Beneficiaries must meet their tax obligations in their respective tax residence countries.

STEP 1: Customer due diligence screening by BTC compliance team (1 working day)
STEP 2: Preparation of incorporation documents & issuance of invoice to client (1-2 working day)
STEP 3: Upon payment received and returning of signed incorporation documents & original notarised KYC documents from client. Proceeding for incorporation submission to Labuan FSA (21 working days)
STEP 4: Official Foundation Registration Certificate received from Labuan FSA (1-2 working day)

Establishment Term : 26 working days

The purpose of setting up the Labuan Foundation (you may fill up this information in BTC's application form), and Know-Your-Customer (KYC) Documents required for each Founder/Council Member/Officer/Supervisory Person/Beneficiary

For Individual (Natural Person):-
1) NRIC (Malaysian) / Passport (Foreigner)
2) Address Proof (e.g. : latest Utility bill / Statement that not older than 3 months period)
3) Two (2) Reference Letter issued by professional body (e.g. : lawyer, accountant, company secretary, notary public, etc)

For Corporate Entity (Corporation):-
1) Certificate of Incorporation
2) M&A
3) List of Directors
4) List of Shareholders
5) Notice of Registered office address
6) Board Resolution for the appointment of corporate representative for the proposed Labuan Foundation

*Additional documents may be requested, subject to compliance review.

Kindly contact our support team.

Foundation name must be ended with "(L) Foundation" or "Labuan Foundation.

There are Prohibited/Restricted Words Or Phrases to be use as part of name, such as Unfavourable words (i.e. : Military, Weapons, Gambling, Fortune Teller, Sex, Drugs etc) , Religious-Related Terms, Federal/State/National Words (i.e. : Agency, Municipal, Government, King, Queen, Prince, Princess, Majesty, Crown, etc)

BTC's office address will be the registered address: -

Kensington Gardens, No. U1317, Lot 7616, Jalan Jumidar Buyong, 87000 Federal Territory of Labuan, Malaysia

Yes, but there will be no refund on the incorporation fees as all work done for the establishement is already took place and performed by BTC.

Foundation Annual Renewal is due by its anniversary incorporation date, and you are require to make the renewal fee payment before the anniversary due date.

For annual renewal, we will continue to renew if you pay based on our invoice.

Kindly contact our support team.

Yes, you may change the company secretary to other service provider, by giving us ONE (1) months termination notice.

Yes, if the renewal fees payment are made later than the anniversary due date, then the penalty will be imposed as follows:-
(i) USD30 : Late Payment between 1-89 day(s)
(ii) USD50 : Late Payment between 90-179 days
(iii) USD400 : Late Payment more than 180 days

Discontinue in paying annual fees to Labuan FSA, under Section 20 of Labuan Foundation Act 2010 (LFA).

Notwithstanding the name of Labuan Foundation has been struck off from Labuan FSA’s register, the Foundation shall continue to remain liable to all fees, license fees and penalties payable under the LFA, including the annual fee plus late payment surcharge thereof. All such fees and penalties specified above shall have priority over all other claims against the assets of the Foundation.

The strike off process takes time 8 months from the Foundation's anniversary due date, and the Foundation is liable to pay 8 months company secretary fees for the period until official struck off notice be issued by the Labuan FSA.

Founder is a person or entity who is individual or corporation and charter subscriber.

Beneficiaries are person or entity who have vested interests in the foundation’s assets.

Officer is a person or entity who manage foundations to achieve the foundation’s purpose.

Council Members are person or entity who ensure compliance with the foundation and officers.

Secretary is a person or entity who act as a secretary of the Foundation and have a substitute function.

Supervisory Person / Protector is a person or entity who monitor the actions of the Board and protect the foundation’s work.

It is possible for both Malaysia residents and non-residents.

Any person or corporate entity may be appointed as director as long as he/it is "fit and proper" and satisfy our due diligence requirement. In principle, it means the person or corporate entity must be sound, not been adjudicated bankrupt, have not at any time been held liable in any civil suit for any fraud or misfeasance and have not at any time been convicted of any offense by any court in relation to his work, business and employment.

Death Certificate need to be provided, and BTC shall notify to Labuan FSA. The rights of the Founder will be passed on to the Council Members or as stipulated in the Charter and Articles of the Foundation.

Although it is possible, the possibility of acquisition is lower than that of an active company. The reason is that there is no tax benefit to relocating Foundation members who are exempt from corporate tax to Malaysia. If this point can be rationally explained in the business plan, it may be approved.

Yes

A public foundation is an entity that is widely donated by an unspecified number of people. On the other hand, with a private foundation, a specific person (or entity) becomes the founder and is mainly used for private purposes such as asset succession. Since the former is of public interest, administrative management such as storage of proof of funding is complicated.

A charitable foundation is a foundation that Charitable purpose should include at least one of the following objectives, and is distinguished from a general foundation. Specific objectives are generally limited to charitable purposes.

1. The prevention and relief of poverty
2. The advancement of religion, profession or education
3. The advancement of health including the prevention and relief of sickness, disease or of human suffering
4. Social and community advancement including the care, support and protection of the aged, people with a disability, children and young people
5. The advancement of culture, arts and heritage
6. The advancement of amateur sport, which promote health by involving physical or mental exertion
7. The promotion of human rights, conflict resolution and reconciliation
8. The advancement of environmental protection and improvement
9. The advancement of animal welfare
10. The advancement of facilities for recreation or other leisure-time occupation in the interest of social welfare

A general foundation is not possible, a charity foundation is possible.

We cannot answer. For details, kindly contact an expert (accountant etc.) in your country of tax residence.

The origin of trust is a concept derived from the British rules of equity.

Trust refers to a mechanism in which a Settlor assigns a specific property (trust property) to a trustee and manages and operates the trust property to provide benefits to the beneficiaries.

In order to set up a trust, the trustee designates a specific property and transfers its ownership and title to the trustee. In addition, the trustee manages the property for the beneficiary according to the instructions of the setter. Normally, when setting up a trust, a document called “Trust Deed” is created.

A major characteristic of trusts is duality of ownership.

Duality of ownership refers to the situation where legal ownership and beneficial ownership co-exist. For example, if Y is the name of a property purchased and invested by X, X has beneficial ownership and Y has legal ownership. In the case of a trust, the beneficiary has beneficial ownership and the trustee has legal ownership.

As a result, the trust can be expected to be an extremely useful mechanism for tax purposes, inheritance purposes, and future or potential creditor avoidance measures due to the dual nature of ownership.

Labuan trusts are of the following types:

・ Labuan charitable trust
・ Labuan protective trust
・ Labuan purpose trust
・ Labuan special trust
・ Labuan spendthrift trust

The trustee becomes the legal owner of the trust fund and the settlor is no longer the owner of the transferred asset. The beneficiaries have vested interests and receive a distribution of profits.

The duration of a Labuan trust may be prescribed in Trust Deed, otherwise Labuan trust may exist in perpetuity. A Labuan trust may also convert from a trust with a fixed duration to one with an unlimited period, by altering the duration listed in the trust deed.

The registration for trust is optional, you may opt not to register it with the Labuan FSA. Labuan trust's information (both registered or non-registered) are confidential and no public search is available.

Labuan mainly uses foundation, as Founder remain the rights on management and controls for Foundation.

Distribution to trust beneficiaries is tax exempt in Labuan.

* Beneficiaries must meet their tax obligations in their respective tax residence countries.

For Register Trust:
STEP 1: Customer due diligence screening by BTC compliance team (1-2 working days)
STEP 2: Issuance of invoice to client (1 working day)
STEP 3: Review of Trust Deed of client, and make amended if any. (5-10 working days, depend on the complexity of Trust Deed content)
STEP 4: Upon payment received and returning of signed trust deed, registration documents & original notarised KYC documents from client. Proceeding for registration submission to Labuan FSA (*optional) (21 working days)
STEP 5: Official Trust Registration Certificate received from Labuan FSA (1-2 working day)
Establishment Term : 30-37 working days

For Non- Register Trust:
STEP 1: Customer due diligence screening by BTC compliance team (1-2 working days)
STEP 2: Issuance of invoice to client (1 working day)
STEP 3: Review of Trust Deed of client, and make amended if any. (5-10 working days, depend on the complexity of Trust Deed content)
STEP 4: Upon payment received and returning of signed trust deed & original notarised KYC documents from client. make record for creation of trust (2-3 working days)
Establishment Term : 10-15 working days

Trust Deed, and the purpose of setting up the Labuan Trust (you may fill up this information in BTC's application form), and Know-Your-Customer (KYC) Documents required for each Settlor/Trustee/Protector/Enforcer/Beneficiary

For Individual (Natural Person):-
1) NRIC (Malaysian) / Passport (Foreigner)
2) Address Proof (e.g: latest Utility bill / Statement that not older than 3 months period)
3) Two (2) Reference Letter issued by professional body (e.g: lawyer, accountant, company secretary, notary public, etc)

For Corporate Entity (Corporation):-
1) Certificate of Incorporation
2) M&A
3) List of Directors
4) List of Shareholders
5) Notice of Registered office address
6) Board Resolution for the appointment of corporate representative for the proposed Labuan Trust

*Additional documents may be requested, subject to compliance review.

Kindly contact our support team.

The name of a Labuan trust may not able be register if the name is in any way misleading or otherwise undesirable.

There are Prohibited/Restricted Words Or Phrases to be use as part of name, such as Unfavourable words (i.e. : Military, Weapons, Gambling, Fortune Teller, Sex, Drugs etc) , Religious-Related Terms, Federal/State/National Words (i.e. : Agency, Municipal, Government, King, Queen, Prince, Princess, Majesty, Crown, etc)

BTC's office address will be the registered address: -

Kensington Gardens, No. U1317, Lot 7616, Jalan Jumidar Buyong, 87000 Federal Territory of Labuan, Malaysia.

Yes, but there will be no refund on the set up fees as all work done for the creation of trust is already took place and performed by BTC.

Trust Annual Renewal is due by its anniversary incorporation date, and you are require to make the renewal fee payment to BTC before the anniversary due date.

Trust Annual Renewal is due by its anniversary incorporation date, and you are require to make the renewal fee payment before the anniversary due date.

Kindly contact our support team.

Yes, but only applicable to Special Trust that registered with Labuan FSA.
If the renewal fees payment are made later than the anniversary due date, then the penalty will be imposed as follows:-
(i) USD30 : Late Payment between 1-89 day(s)
(ii) USD50 : Late Payment between 90-179 days
(iii) USD400 : Late Payment more than 180 days

There is no strike off for Trust, you may terminate the Trust by order by the Trustee.

Not applicable.

A founder is those who set up trust assets in a trust. The settlor can be an individual or a company.

A trustee is those who owns a trust fund and is responsible for managing it for the benefit of the beneficiary.

An Enforcer / Protector is a person who acts like a “watcher” to a trustee for the benefit of the beneficiary. May be appointed by settlor.

Beneficiaries are those who have the right to earn a profit by enforcing a trust. Individuals (possibly minors), charities, and companies can also be appointed.

Trust Deed is a certificate that establishes the trustee's authority. Trust settlors can adjust trust conditions to meet requirements.

Letter of Wishes is a certificate for the settlor to give advice to the trustee regarding matters that will affect after his/her death (especially distribution issues). Generally, when setting up a discretionary trust, the settlor always gives a Letter of Wishes to the trustee. There is no binding force on the Letter of Wishes.

Discretionary Trust gives the trustee complete discretion over the management and operation of trust assets. The discretionary trustee will have complete discretionary power in regards to (1) who will distribute what assets and when, and (2) how often.

The merit of the discretionary trust is that the discretionary power is left to the trustee, and it can be said that it is a flexible mechanism because it can be adapted to the situation of the beneficiary later.

* For actual operation, kindly consult with a tax resident country expert before setting up.

Fixed Trust is a trust certificate that clearly determines which trust assets will be allocated to whom and at what percentage. The beneficiary can get a certain level of security by confirming the contents.

However, on the other hand, it may not be very effective for tax purposes or for possible creditor purposes in the future.

* For actual operation, kindly consult with a tax resident country expert before setting up.

It is possible for both Malaysia residents and non-residents.

Any person or corporate entity may be appointed as director as long as he/it is "fit and proper" and satisfy our due diligence requirement. In principle, it means the person or corporate entity must be sound, not been adjudicated bankrupt, have not at any time been held liable in any civil suit for any fraud or misfeasance and have not at any time been convicted of any offense by any court in relation to his work, business and employment.

Determined based on trust agreement.

Is possible. However, in the case of personal assets, we recommend that you consider making a will rather than a trust.

In order to set assets in Malaysia as trusts, prior consent of Labuan FSA is required. Malaysian foreign assets can be set freely.

We cannot answer. For details, kindly contact a expert (accountant, etc.) in your country of tax residence.

The difference between onshore and offshore banks is that the former is for local customers (Malaysia residents), the latter is for global customers (non-Malaysia residents).

The former feature is that debit cards are issued and payment is highly convenient. The latter feature is not subject to foreign currency regulations and is used for large international transactions.

In Malaysia, in the unlikely event that a bank goes bankrupt, in principle, up to MYR 250,000 is guaranteed for 1 company (individual) per 1 bank. In addition, even if branches are counted as 1 bank, if there are a lot of funds, it is recommended to open multiple banks and manage the fund in a distributed way.

The scope of application covers assets such as ordinary accounts, checking accounts, fixed deposit accounts, and Islamic deposit accounts. On the other hand, unit trusts and gold-related investment products are not applicable.

Payoffs are also applied to foreign currency accounts, and up to an amount equivalent to MYR 250,000 is guaranteed according to the exchange rate at that time.

Foreign currency deposits are usually deposited in a correspondent bank account opened by the bank. The correspondent account is subject to extraterritorial rights and the laws of the financial institution.

Therefore, Malaysia (including Labuan) banks have legal jurisdiction over Malaysia and Singapore banks have legal jurisdiction over Singapore.

The minimum deposit varies depending on the financial institution. Malaysian banks have a minimum deposit of around USD 10,000, and Singapore banks have a minimum deposit of around USD 30,000.

The minimum deposit amount is an account maintenance cost set by a financial institution. Depending on the financial institution, if it falls below the minimum deposit amount, a management fee may be collected or the account may be closed.

Is possible. However, since there is an extra exchange fee, we recommend that you transfer directly to the USD account if possible. For onshore accounts, there is no minimum deposit required for MYR accounts, but there is a minimum deposit for foreign currency accounts.

Therefore, as soon as payment can be confirmed in your MYR account, kindly transfer the fund to the foreign currency account as soon as possible.

When opening an account, it is common practice to have an bank statement issued by a financial institution (bank, securities company, etc.) already opened. Utility bills are also allowed.

* If written in local language, English translation is generally required.

Bank Reference is a reference letter issued by a bank.

Issued to other financial institutions to prove that the customer is maintaining the account without problems.

It is usually issued by requesting the person in charge at the branch (relationship manager).

The Source of Fund is a document used by a bank to confirm the origin of funds. Usually, "Salary", "Personal Asset", "Investment Income", etc. are generally entered.

W-8BEN is a non-resident certificate submitted to the IRS (US Tax Authority). By submitting these documents, interest on bank deposits and gains on transfers of stocks, bonds, funds, etc. will be tax-free and expected to reduce withholding on dividends.

W-8BEN is usually required to resubmit once every 3 years.

UBO is an abbreviation for "Ultimate Beneficial Owner", which is a true beneficiary. Nominee cannot be a signer in a company established using a third-party name.

Therefore, as a general rule, it is desirable that the true beneficiary be the signer (to prevent the loss of funds).

TIN is an abbreviation for "TAX Identity Number". In order to facilitate automatic exchange agreements based on common reporting standards (CRS), financial institutions in each country require all account openers to submit.

A Controlling Person is usually a shareholder who holds more than 25% of the shares.

SWIFT (Swift) is an abbreviation of "Society for Worldwide Interbank Financial Telecommunication" and manages the financial institution identification code "SWIFT code" (also called SWIFT address and BIC code) used for international remittance.

This is a unified code that connects financial institutions around the world, and is used across countries and regions as an "address" for international remittances.

The SWIFT code consists of 8 characters. The first 4 characters are "Financial Institution Code", the next 2 characters are "Country Code", and the next 2 characters are "Location Code".

ABA number is a bank number held by a US bank. When sending fund to the United States, enter "ABA NO. ○○○○○○○○○" after the branch name of the recipient's financial institution.

IBAN code is a common standard established by the European Banking Association and the International Organisation for Standardisation (ISO) for the purpose of reducing foreign remittance errors and speeding up processing.

Currently, it is mandatory to include "IBAN" and "BIC" codes in the payee account number for Euro (EUR) - denominated remittances within Europe. Although not required for foreign remittances to Europe, some European financial institutions may charge an additional fee if the code is not included. Kindly input without leaving a space in the payee's account number field.

* Since the IBAN includes the recipient's account number, it is sufficient to fill in instead of the account number.

Financial institutions (banks) in each country have their own affiliated banks and make payments using the foreign currency accounts of the affiliated banks. In this way, the bank that financial institutions use for foreign currency settlement is called "Correspondent Bank" (the account is called correspondent account).

Financial institutions that deal with foreign exchange have signed correspondent contracts with banks around the world, and have them carry out exchange services for international settlement such as remittance, deposit, and bill collection. This makes it possible to transfer funds only by document (communication) without transferring fund.

If the SWIFT code of the recipient bank is specified, the sender's bank (or correspondent bank of the sender's bank) will search for the correspondent's account and transfer the fund.

However, in the above case, funds are collected through multiple correspondent banks, and in rare cases, it may cause troubles such as funds being lost on the way. It is common to specify a correspondent account from time to time.

Exchange fees are expressed as the difference (spread) between TTS and TTB.

TTS is an abbreviation for "Telegraphic Transfer Selling rate", the rate at which banks sell foreign currency to customers (the rate at which customers buy), TTB is "Telegraphic Transfer Buying rate", which is the rate at which a bank buys foreign currency from customers (the rate at which customers sell). The mid price between TTS and TTB is the TTM (Telegraphic Transfer Middle rate), which is the reference rate for foreign exchange. The difference from this TTM rate is the bank's profit as a foreign exchange fee.

TTS and TTB are presented daily for all currencies that can be exchanged. Currency fees with a high circulation volume are cheaper, and currencies with a low circulation volume are expensive.

There is no exchange fee if you transfer fund from a USD account in USD correspondent account.

The fee collected by the bank for international remittance without exchange as described above is called "lifting charge".

A check is issued along with the checking account, and the account holders fill in the address and amount by themself and hands it to the recipient or mails it to the recipient.

When there is no funds in the account at the time of settlement, it becomes a non-delivery (Bounced Check) and a fee (interest for borrowing) is incurred. This is a convenient way to transfer account funds to rent payments or transactions.

* If your check is stolen, kindly keep it carefully as there is a risk that it will be misused if it is signed by the signer.

Bank Draft is a check issued by a bank that guarantees payment. The remittance check is issued by specifying the address, currency and amount of the check, and the client mails it to the other party.

The remittance fee varies depending on the bank that sent the fund. Other fees include "Exchange (currency) fees". These are the bank's profits.

The receiving bank may collect a commission fee, and the correspondent bank may collect a correspondent fee, which will reduce the amount received by the recipient.

By paying the fee as the source of payment (OUR), the recipient (BEN) can receive the remittance amount as it is by paying the fee in advance.

However, in the case of remittance source (OUR), even if the fee actually paid is less than the advance payment amount, you will not respond to the refund (in contrast, if the actual fee is higher, additional payment will be required).

Remittance source burden (OUR) is convenient when transferring the specified amount to the other party's account, but if you want to transfer fund to your own account, send it as a remittance destination burden (OUR) and send it slightly more in consideration of the fee, the cost may be cheaper.

Some financial institutions may collect a "receipt fee" upon receipt of remittance. The amount depends on the bank.

Some correspondent banks charge a correspondent (relay) fee for remittance procedures. If the transferred fund goes through the correspondent bank that collects the fee, the amount of money will be reduced accordingly.

Even if there is no receipt fee, if you transfer the minimum deposit amount as it is, the deposit amount will decrease by the amount of the correspondent fee, which may result in an account maintenance fee. In order to avoid this case, it is recommended that you send fund with some margin.

Indicate content that suits your purpose, such as "Initial Deposit" for initial deposits to bank accounts, "Business Service" for business transactions, and "Internal Transfer" for funds transfer within the same company. Depending on bank, you may be able to select from a list.

* Kindly select "Company Secretary Fee", "Professional Service", etc. for payment of company secretary fee to Bona Trust Corporation.

If you send or receive a certain amount of funds from/to a third party in a business transaction, or if the name of the funds transfer is insufficient, you may receive a confirmation call as a money laundering measure.

As a general rule, there is no confirmation phone call when sending or receiving fund to another account of the same company.

Due to business customs, international remittance procedures are entirely responsible for the payment from the bank side that sent the fund.

If you are unable to confirm the payment in payee account even 1 week after the transfer, you may have some trouble, so kindly ask the bank from which you sent the payment. If you specify correspondent bank, there are 2 possible causes below:-

(1) Differences in remittance destinations, funds stopped at one of the correspondent banks

Take the reorganisation procedure at the remittance bank side, return the funds to the remittance source account, and retransmit the fund again (prescribed fee will be charged for reorganisation).

(2) Although the funds have arrived at the financial institution of the recipient, the designation below "Further Credit to" is incorrect and the funds are not credited to the recipient's account

Present the copy of the remittance request form to the other financial institution, tell the fact of the remittance, and instruct them to add fund to the recipient's account.

* In order to make international remittances, it is necessary to pre-register your bank account. We recommend that you first send a small amount of fund to the registration site and make sure that you can deposit it safely. Once it succeeds, you will be able to transfer large amounts of fund with confidence since the next route will send the same route.

* Kindly be sure to print out the receipt number when sending fund instructions from internet banking. This is important evidence in case of trouble.

The password generator used to log in to Internet banking is called a "security device" or "token". Using tokens enhances security and prevents spoofed logins.

First, register the identification number written on the back of the device from the bank's website and initialize (activate) it.

Each time you log in, press the device and enter the number (usually 6 digits) displayed there to complete the login.

First of all, kindly make sure that it has not arrived at your bank's registered address. If you have not received it, kindly contact the bank, sign the required documents and request a reissue.

* If the address is changed, such as when moving an office, kindly change the recipient address immediately.

Depending on the financial institution, if you have not logged in for a long time (usually 1 year), you may be locked for security. You will need to call customer support to have it unlocked.

* Kindly log in regularly for the purpose of checking the balance at least once in several months.

To unlock the password lock, it is necessary to have call unlock after confirming your identity by phone. Kindly be careful not to enter the password incorrectly.

Kindly contact the bank for information on battery replacement for security devices (tokens). You can get a replacement or mail a new device.

* If the address is changed, such as when moving an office, kindly change the recipient address immediately.

If you have a person in charge (relationship manager), you can arrange for bank statements to be issued by contacting the person in charge.

Usually, it is quickest to bring your passport and company stamp, drop in at the nearest branch and ask for a reissue, usually it will be issued on the spot.

If you notify the financial institution of unauthorize use, the funds will be refunded in principle.

Depending on the financial institution, you will be contacted by a bank and a new PIN will be sent. You can use it by initialising with the PIN received at ATM and changing the PIN.

* If the address is changed, such as when moving an office, kindly change the recipient address immediately.

When the expiration date approaches, a new card will be sent to the registered address.

* If the address is changed, such as when moving an office, kindly change the recipient address immediately.

Annual Review Form is a document that allows the bank to keep up-to-date with its clients. Kindly fill in the required items, sign and mail the original to the bank.

FATCA / CRS Form (name varies depend on bank) is a document that allows the bank to know the country of the client's tax residence. Kindly fill in the required items, sign and mail the original to the bank.

The Labuan Company shall pay advance 2 years of annual renewal fees to Labuan FSA, reason being the work permit will be issue with 2 years validity.

The Labuan Company shall maintain an operation office in Labuan, which is not the registered office address of its Trust Company.

The applicant shall have a residential address in Malaysia, preferably in Labuan.

The Applicant shall be paid minimum monthly salary of RM10,000 and subject to Monthly-Tax-Deduction and Employee Injury Scheme contribution on monthly basis. Annual income received by the Applicant is require to report for personal income tax , and the Applicant is responsible to file his/her personal income tax return via online portal (https://ez.hasil.gov.my)

The Applicant is require to be present in Labuan Immigration office for visa endorsement process (after approval granted).

1. Certified true copy of the entire whole passport of employees including empty pages (to be certified true copy by the Embassy of Home Country) [NOTE: 2 sets of certification required for China (PRC), Iran, Iraq, and North Korea nationality.]

2. 4 pieces passport size color photos of applicant with white colour background

3. Personal Resumes (giving personal particulars, professional/educational qualifications and working experience) with the supporting profession / educational certificates of employee (to be certified true copy by the Embassy of Home Country)

4. Employment contract from the Labuan Company to applicant stating the designation, remuneration, duration of contract and terms of employment – contract to be duly signed by both parties
a. Minimum remuneration of applicant must be RM 10,000 per month
b. Original signed contract to be provided as this is required to be stamped at the stamp duty office.

5. Malaysian Income Tax reference number or Form CP 22

6. Business Plan includes the following information:-
(i) Profile of the Labuan Company;
(ii) Job Description of each director (include the applicant);
(iii) Target Markets (state country and percentage);
(iv) Company Organization Chart;
(v) Description of business activity;
(vi) Manpower requirement;
(vii) Financial projections / forecast for three years; and
(viii) Other relevant information that may support the application.

Kindly contact our support team.

The processing is taking approximately 30 working days, subject to no further enquiries from Labuan FSA.

STEP 1: BTC will prepare the invoice and documents in regard to work permit application for signing by the company director and applicant.
STEP 2: Upon payment received, and applicant return the required documents and signed application documents to BTC, then BTC will proceed submission to Labuan FSA to seek for approval.
STEP 3: Approval from Labuan FSA granted, then BTC will submit the work permit recommendation to Labuan Immigration.
STEP 4: Applicant can arrange flight schedule to Labuan Immigration for work permit endorsement process (require to stay 2 days 1 night at Labuan island to complete the endorsement process).
STEP 5: Applicant make payment to Labuan immigration for the endorsement fee, and work permit obtained. Process completed.

Renewal of work permit application is require to submit to Labuan FSA at least 3 months prior to the expiry of existing work permit validity.

STEP 1: BTC will prepare the invoice and renewal documents in regard to work permit renewal application for signing by the company director and applicant.
STEP 2: Upon payment received, and applicant return the required supporting documents and signed renewal application documents to BTC, then BTC will proceed submission to Labuan FSA to seek for approval.
STEP 3: Approval from Labuan FSA granted, then BTC will submit the work permit renewal recommendation to Labuan Immigration.
STEP 4: Applicant can arrange flight schedule to Labuan Immigration for work permit renewal endorsement process (require to stay 2 days 1 night at Labuan island to complete the endorsement process).
STEP 5: Applicant make payment to Labuan immigration for the endorsement fee, and work permit renewed. Process completed.

1. Four (4) copies of passport size photos with WHITE COLOUR background.
2. Certified true copy of ALL PAGES of passport book by the Notary Public
3. Certified True Copies of highest qualification - educational certificate by the Notary Public
4. Tenancy agreement for the Labuan Operational Office
5. Form EA (annual gross employment income) for previous year.
6. Latest 3 months salary slips
7. Certified true copy of latest 3 months personal bank account statements (must be certified copy by the issued bank) – this act as the evidence of receiving monthly salary from the Labuan Company.
8. Updated Resume (to include the current roles & responsibility in the Labuan Company)
9. Certified true copy of latest 3 months Company bank account statements (must be certified copy by the issued bank) – this act as the evidence of active company business
10. Evidence of Active Company Status (e.g. : to provide company invoices, business contract and agreement, or correspondences with clients, etc)

Kindly contact our support team.

Yes, subject to approval of Labuan FSA, and require to provide valid reason or justification on renewal after expiration.

The work permit will lapse as of the expiry date.

The approval rate for renewal is low for this situation.

No.

You may surrender the work permit and proceed with proper closure of personal tax file in Malaysia.

Yes, you need to surrender your work permit under the Labuan Company if you resign from the Labuan Company.

Kindly contact our support team.

Yes, you need to leave Malaysia after complete the work permit surrender process, and the work permit validity will be shorten to the date of your flight ticket leaving Malaysia.

Please renew the passport before proceed the work permit renewal application.

Transfer of work permit from old passport to new passport, BTC will assist the process with fee charges.

Transfer of work permit to new passport, with the supporting document (police report on lost passport) , and BTC will assist the process with fee charges.

Yes, you will have a Malaysia TIN.

No

Yes, a Labuan operational office is required.

Yes

No, you can live in Labuan island of East Malaysia only.

Yes, but you need to surrender the Malaysian company work permit (a person cannot carry two work permit issue from Malaysia immigration)

Yes, but you need to surrender the MM2H visa (a person cannot carry two visa issue from Malaysia immigration)

Yes, but renewal of work permit will be difficult, and personal income tax rate is high (30%) for Non-Tax Resident.

Work permit is valid for 2 years only, and MM2H is valid for more than 2 years (usually up to 10 years validity)

Yes, you need to travel to Labuan immigration to obtain the work permit visa endorse to your passport book.

If the applicant is not able to complete the work permit endorsement within 3 months from date of approval, the work permit will deemed void and null.

Yes, we can introduce real estate companies. Both purchase and rental can be arranged.

There is no expat card for Labuan work permit.

The work permit issued is a multiple entry visa to West Malaysia and Labuan.

It is available. However, pre-registration is required. When you return from abroad, after passing through the immigration gate of KLIA1 (Kuala Lumpur International Airport Terminal 1), there is a registration window on the left side. The cost is about MYR40.

Yes

Labuan offers a vessel registration service. If necessary, we can provide registration support.

* In general, ship registration often uses Panama.

We can arrange a Vessel hangar (Parking lot) at Subang International Airport (formerly Kuala Lumpur International Airport). Necessary inspections and maintenance can be performed in the hangar. Subang International Airport is located close to Kuala Lumpur city area, so it is used by domestic flights, Singapore routes, large aircraft maintenance facilities, business jet companies, etc.

We can support both purchase and lease. Labuan can also support the establishment of a leasing company, so please consider using it as well.

Please provide death certificate, BTC will notify the relevant Authorities and cancel the work permit of the deceased.

The dependant must have relationship to the Principle (Work Permit Holder) , such as:-
1) Spouse
2) Children (below 18 years old)
3) Parent / Parent-in-law
4) Common Law Spouse

1. Certified true copy of the entire whole passport of dependant including empty pages (to be certified true copy by the Embassy of Home Country) [NOTE: 2 sets of certification required for China (PRC), Iran, Iraq, and North Korea nationality.]
2. 4 pieces passport size color photos of dependant with white colour background
3. Proof of Relationship with Principal (i.e: Marriage Cert / Birth Cert)

Kindly contact our support team.

STEP 1: BTC will prepare the invoice and documents in regard to dependent pass application for signing by the work permit principal.

STEP 2: Upon payment received, and return the required documents and signed application documents to BTC, then BTC will proceed submission to Labuan Immigration to seek for approval.

STEP 3: Approval from Labuan Immigration granted.

STEP 4: Dependent can arrange flight schedule to Labuan Immigration for dependant pass endorsement process, together with the principal (require to stay 2 days 1 night at Labuan island to complete the endorsement process).

STEP 5: Dependent make payment to Labuan immigration for the endorsement fee, and dependent pass obtained. Process completed.

STEP 1: BTC will prepare the invoice and documents in regard to dependent pass renewal application for signing by the work permit principal.

STEP 2: Upon payment received, and return the required documents and signed application renewal documents to BTC, then BTC will proceed submission to Labuan Immigration to seek for approval.

STEP 3: Approval from Labuan Immigration granted.

STEP 4: Dependent can arrange flight schedule to Labuan Immigration for dependant pass endorsement process, together with the principal (require to stay 2 days 1 night at Labuan island to complete the endorsement process).

STEP 5: Dependent make payment to Labuan immigration for the endorsement fee, and dependent pass obtained. Process completed.

1. Certified true copy of the entire whole passport of dependant including empty pages (to be certified true copy by the Embassy of Home Country) [NOTE: 2 sets of certification required for China (PRC), Iran, Iraq, and North Korea nationality.]
2. 4 pieces passport size color photos of dependant with white colour background
3. Proof of Relationship with Principal (i.e: Marriage Cert / Birth Cert)

Kindly contact our support team.

Yes

You may surrender the dependent pass, BTC will assist the process with fee charges.

Kindly contact our support team.

Yes, you need to leave Malaysia after complete the dependent pass surrender process, and the dependent pass validity will be shorten to the date of your flight ticket leaving Malaysia.

No

No

No

Firstly, obtain baby passport, and report to Putrajaya Immigration, to obtain a Special Pass for baby's passport. And prepare same required documents for Dependent Pass application.

Yes

You may apply student pass for your child. Otherwise, BTC can write a letter to school, state the status of the dependent pass application.

You may surrender the dependent pass, and submit supporting document (i.e. : Divorce Certificate/Letter), BTC will assist the process with fee charges.

Dependent pass validity is follow the Principal (work permit holder).

Dependent pass validity is follow the Principal (work permit holder), therefore the dependent pass will be invalid after the Principal died.

Please provide death certificate, BTC will notify the relevant Authorities and cancel the dependent pass of the deceased.

Accounting and bookkeeping refers to the work of collecting daily transaction details as accounting data and creating financial statements that are the actual business status of the company based on the data. Efficient accounting / bookkeeping and financial control ensures your company runs smoothly and improving your financial planning. Outsourcing accounting work will lower your business cost with the efficient and experienced accountant.

Financial statements refer to documents that are stipulated by the Companies Act, such as a "Profit and Loss Statement" that calculates the profits of the company and a "Balance Sheet" that expresses the company's financial condition, which are the basis for calculating the tax amount. In Malaysia, it is generally called a management account. Day to day business transactions like sales invoice, purchases invoice, expenses billing & receipts as well as monthly bank statements need to be provided in order to generate a full set financial statements.

Malaysia has its own accounting standards (FRS) in accordance with IFRS. Malaysian companies listed on the stock exchange are required to prepare financial statements based on FRS. However, foreign companies listed on the stock exchange are allowed to prepare financial statements based on IFRS. For SME (Small Medium Entity) also applying MPERS (Malaysian Private Entities Reporting Standard). The MPERS is a self-contained Standard that is applicable only to private entities. The accounting requirements of the MPERS are word-for-word the IFRS for SMEs (International Financial Reporting Standards for Small and Medium-sized Entities) issued by the IASB except for the requirements on Property Development Activities (Section 34 Specialised Activities). Small SMEs which applied MPERS is emphasising on cost saving and it is less compliance cost involved compared to MFRS. Meanwhile, it is for those small SMEs that do not plan to go for IPO in the foreseeable future.

The scope of our service provision is as follows:-

・Prepare journal vouchers, coding and bank reconciliation.
・Prepare Profit & Loss, Balance Sheet, General Ledger & Trial Balance (Full sets management account).
・Review management report and general accounting advisory.
・Financial analyst to provide valuable insight into company’s financial health.

We request Monthly sales invoice, expenses billing & receipts for undertaking.

We connect through Dropbox or Email for scan documents.

We use accounting software from Sage UBS.

It is depend on the volume of the business transactions. Monthly, quarterly or yearly management account can be provided based on client's requested, Meanwhile different fees charges will be applied. Kindly contact our accounting team for quotation in details.

Undertaking fee vary depending on transaction volume. Kindly contact our accounting team with reference to the following data:-

-Dormant Status : 0 (Including cases there is no sales and only payment)
-Active Status : 0-15 transactions per month
-Active Status : 16-50 transactions per month
-Active Status : 51-150 transactions per month
-Active Status : 150 & above transactions per month

Kindly contact our accounting team.

Management account are basically generated with 4 items: Profit Loss Statement (P/L), Balance Sheet (B/S), General Ledger (G/L) and Trial Balance (T/B).

Allowable expenses to be tax deducted for Labuan company must be related to the business activities and it is decided by Labuan auditor after audit progress have been done.

Issued invoice cannot be deleted and it can be knock off with issue the ''Credit Note'' to tally back the account entry.

All companies that conduct business activities are subject to 3% tax and audits are mandatory.

Only Labuan Entities that fulfilled the definition of Dormant Status as defined by the IRB-Malaysia, are able to opt for no audit for the particular financial year end.

An audit of a Labuan company (business entity) must be selected from approved auditors.

https://www.labuanibfc.com/areas-of-business/labuan-service-providers/trust-companies-and-ancillary-services/list-of-active-approved-auditors

Yes, we can introduce auditors if necessary.

After management account have been generated then will pass to the appointed auditor for audit progress.

Sales invoice, Purchases invoice, company expenses invoice receipts, bank statements as well if there is any agreements which related to business activities.

Yes, It is compulsory to do consolidated management account for holdings company with its subsidiaries.

Labuan's corporate tax filing deadline is March 31 every year. Please contact us only if you are not in time. We will apply for an extension of the deadline (whether approved or not is based on FSA's discretion).

* In principle, Bona Trust Corporation does not accept any secretarial services for clients who cannot meet the deadline.

Labuan belongs to the Malaysia, but it has a uniform low tax rate of 3%, tax exemption for companies that conduct Labuan business activities, such as withholding tax exemption for payment to non-residents, tax exemption for compensation for foreign directors, etc.

· Trading Company conducting business activities: 3%

Revenue signed by Labuan will be subject to 3% tax. (※ Business activities ex: banking, insurance, fund management, leasing etc.)

· Non Trading Company does not conduct business activities: 0% (tax exempt)

Labuan company do not conduct business activities are tax exempt and do not need legal audit by Auditor (* Non-business activities ex: Securities transactions: stocks and bonds, loans, deposits, real estate investment etc.).

· When both of the above are done by the same Labuan company: 3%

In the case of Labuan company conducting both activities, it is regarded as a Labuan company conducts commercial activities.

Trading Activity is a transaction that does Buy & Sell. In this case, 3% will be taxed and must be audited.

Non Trading Activity is a transaction that does not do Buy & Sell (Buy & Hold). In this case, there is no tax and no audit is required.

Considered as Trading Activity and subject to tax.

The tax rate (24%) specified in the Malaysian Income Tax Act 1967 applies.

The tax rate (24%) specified in the Malaysian Income Tax Act 1967 applies.

Businesses that provide qualified professional services to Labuan companies (entities) are legal, accounting, financial, auditing, secretarial services, etc., and 65% of the statutory income obtained from qualified professional services is exempt from tax.

Payments from the following residents to Labuan companies are not deductible under the Malaysian Income Tax Act 1967.

・ Interest expense – 33% non-deductible (only 67% is deductible)
・ Lease fee – 33% non-deductible (only 67% is deductible)
・ Other payments – 97% non-deductible (only 3% deductible)

Labuan business activities are business or non-business transactions conducted on Labuan Island or through Labuan entities, excluding activities that violate the law.

Labuan Business Activity Tax (Requirements for Labuan Business Activity) Regulations 2018 (the "Rules") are required to meet the requirements for full-time minimum number of employees and minimum annual cost in Labuan.

By regulations, entities that are not listed as Labuan entities or do not meet the required requirements are considered not doing Labuan business activities and are subject to the Malaysian Income Tax Act 1967.

* General Labuan companies do not hold licenses are not covered by the above.

Kindly refer to the following site for questions and answers (FSA official version) for the Labuan corporate tax revision.

https://www.labuanibfc.com/clients/Labuan_IBFC_78C2FF81-703A-4CAA-8926-A348A3C91057/contentms/img/Downloads/guideline/general/Frequently%20Asked%20Questions%20-%20New%20LBATA%20(Substantial%20Activity%20Requirements)_%202019.pdf

With the revision of the Labuan Corporate Tax, new regulations have been enacted in the exercise of the authority granted by the Labuan Business Activity Tax Act (Act. 1990) 21 (1), 2B (2) (b).

These regulations were enforced as Labuan Business Activity Tax Law and became effective on January 1, 2019.

Kindly refer to the following site for details of the system associated with the revision of Labuan corporate tax.

https://www.labuanibfc.com/clients/Labuan_IBFC_78C2FF81-703A-4CAA-8926-A348A3C91057/contentms/img/Downloads/legislation/subsidiary-legislation/pua_20190101_PUA%20392.pdf?1547807543

In this case, Labuan entities will not be able to enjoy the LBATA tax incentive (3% tax rate). In other words, it will be taxed under the ITA, and the Malaysian corporation tax system (24%) will apply.

These are costs incurred by the Labuan corporation on Labuan Island (e.g. invoices and receipts issued in Labuan). This includes payments, professional and statutory fees. (Salaries, lease rentals, service provider fees, license payments to Labuan FSA, etc.).

When conducting securities transactions, taxation methods are divided into 2 categories: "dividend income gain tax" and "capital gain tax".

Kindly refer to the following website for the tax system's view when trading securities such as stocks and bonds under the name of Labuan entity.

https://www.labuan-trust.com/service/labuan_company_incorporation_and_management_service/securities_trading_and_taxation/

When conducting real estate transactions, taxation methods are divided into 2 categories: "dividend income gain tax" and "capital gain tax".

Kindly refer to the following website for the tax system's view when trading securities such as stocks and bonds under the name of Labuan entity.

https://www.labuan-trust.com/service/labuan_company_incorporation_and_management_service/malaysia_real_estate_investment_and_taxat

The tax treaty is signed with the mainland Malaysia and is applied indirectly to about 80 countries (* Excluded from tax treaties with Australia, Chile, Germany, India, Indonesia, Japan, Luxembourg, Netherlands, South Africa, Spain, Sweden, Seychelles, and the United Kingdom).

It is recommended, as every Labuan Company is obliged to report its tax position with the Inland Revenue Board within three months from the commencement of a year of assessment. If Bona Trust Corporation is not the tax agent, you are required to furnish us details of your tax agent and copies of the filed tax document for our records.

Late tax penalties are accrued 10% every 30 days (max 50%).

Tax evasion penalties are as follows:

-First 30 days… 10%
-Next 30 days… 15%
-Next 30 days… 15% (max 40%)

Income received by individual directors from Malaysia is taxable. In Malaysia, tax is exempted when individual directors earn income from overseas sources. A tax rate of 0% to 28% is applied to residents and a uniform 28% rate is applied to non-residents.

Income received by individual directors from Malaysia is taxable. In Malaysia, tax is exempted when individual directors earn income from overseas sources. A tax rate of 0% to 30% is applied to residents and a uniform 30% rate is applied to non-residents.

Is possible, kindly refer to the following site and contact us for application for proxy procedures.

https://bona-trust.com/our_service/accounting_and_administrative_service/

In Malaysia's income tax law, regardless of citizenship or nationality, if the number of days in Malaysia is 182 days or more in the previous calendar year will be "tax resident", if the number of days in Malaysia is less than 182 days in the previous calendar year will be "non tax resident".

Director compensation for foreign directors is tax free. However, in the case of a company where such as a sololy shareholder and director type and conducts business, it may be regarded as salary income (taxable). In principle, it is recommended that director compensation be received only when local staff are employed (determined based on real standards).

There is no legal limit on the number of times, however it is better to keep it twice a year.

Dividends to shareholders are treated as tax free.

There is no legal limit on the number of times, however it is better to keep it twice a year.

KYC is an abbreviation for Know Your Customer. Based on personal information such as passports, we will investigate whether there is a criminal record (due diligence).

In recent years, financial institutions and fund remittance companies have been required to implement such measures as part of their money laundering measures.

There are 2 solutions below:-

One is to bring your passport to the Metropolitan Police Department, and obtain Non criminal certificate from them. After submitting these documents to the Labuan Financial Services Authority, we will be able to accept the work after approval.

The other, if your name notation or spell is different from a criminal with the same name, kindly sign your Personal Resume and application documents prepared by our us. After submitting these documents to the Labuan Financial Services Agency, we will be able to accept the work after approval.

CTC is an abbreviation for Certified True Copy. For example, if it is difficult to submit a original copy such as a passport, it will be considered official with CTC. As a general rule, CTC can obtain English certification at notary offices.

It is possible to obtain CTC at a notary office. Depending on the service content, in addition to notary certification, we may request for certification at the Legal Affairs Bureau certification, Ministry of Foreign Affairs certification, or Malaysian Embassy (Apostille certification).

Yes, you need to provide both passport's copy to us, and we will conduct a review process. If the review is OK, you may let us know which citizenship you would like to use to obtain the visa (work permit).

Let us know which citizenship (nationality) is the 2 passports you holding. One of the citizenship must include your place of birth (country of origin).

A reference letter is a recommendation letter from an expert used to objectively prove that the person is a reliable person.

Request reference letters from professionals (such as Lawyers, Certified public accountants, Notary, etc.) or from the bank where you open personal account.

We require a minimum of 2 reference letters.

The reference letter can be in free form, but as a general rule, the following information must be included:-

・ Enter the letterhead of the office to which professionals such as lawyers or accountants belong.
・ Enter the name, address, phone number, email address, URL, etc. of the professional office.
・ An expert registration number and signature must be signed, and a job seal must be stamped (if any).

If you can contact us, we will give you a sample form.

Is possible. For example, if husband will be a shareholder and wife will be a director, there is no problem if issue 1 letter from Lawyer A and the other letter from Accountant B in this case.

Proof of Address is a document that proves the residence address of the person who assumes office as a director or shareholder. Kindly be sure to submit proof of address in your country of residence.

e.g. : latest Utility bill / Statement that not older than 3 months period

The Labuan Law does not allow electronic storage of scanned data. Kindly be sure to courier the original copy to us. In addition, kindly be sure to obtain notary certification for documents that are difficult to submit originals such as passports (Certified True Copy).

Bona Trust Corporation is a Trust Company incorporated in the Federal Territory of Labuan, Malaysia under the Labuan Companies Act 1990 ("LCA"). We are registered with the Labuan Financial Services Authority ("Labuan FSA") to provide professional and accredited business services as a Labuan Trust Company under the Labuan Financial Services and Securities Act 2010 ("LFSSA").

We will focus on providing business success tools for High-Net Worth Individuals (HNWI), Corporations, and Foreign Governmental Organization.

Monday to Friday 11:00 - 18:00 (closed on Saturdays, Sundays and public holidays).

You can check it from Labuan IBFC official website.

https://www.labuanibfc.com/areas-of-business/info-details-for-labuan-trust-companies-list?companyid=238A21D5-FA1F-417E-BF3A-43BEAF789A7E

Our common language is English. Chinese and Japanese are also available.

It is possible, but kindly make a reservation in advance. Since we give priority to e-mail support, in principle, all inquiries by phone will be call back after hearing the requirements.

Although it is possible, there will be a charge for professional fee (personnel expenses per hour + transportation expenses + accommodation expenses, etc.).

Unfortunately, due to the nature of the product, we do not make postpaid. As an alternative, you can proceed with the procedure if you send us the proof of payment scan data.

In principle, Bona Trust Corporation does not accept any payment other than bank transfer. However, if you are unavoidable to bring cash, such as when the deadline for renewal is coming soon, kindly bring your bank withdrawal certificate. We cannot accept cash without proof of withdrawal.

Bona Trust Corporation recruits operation staff on an irregular basis. For details, kindly refer to each recruitment media. The human resources we seek are as follows:-

・ Language requirements: Acquire 4 skills (Reading, Writing, Speaking, Listening) in English + Chinese or Japanese above business level expected

・ Business experience: Knowledge and experience in trust business or company secretary business at financial institutions over than 3 years expected

Bona Trust Corporation develop and manage tools for improving the efficiency of company secretary duties. It is possible to provide customized products for each client (Trust Companies).

In the unlikely event that we go bankrupt, the company secretary of our client will be handed over to other trust company.

At our company, administrative fees received from clients are kept separately, and funds are transferred regularly from business accounts. In the unlikely event that we go bankrupt, our clients' funds are protected.

Bona Trust Corporation is a Trust Company incorporated in the Federal Territory of Labuan, Malaysia under the Labuan Companies Act 1990 (“LCA”). We are registered with the Labuan Financial Services Authority (“Labuan FSA”) to provide professional and accredited business services as a Labuan Trust Company under the Labuan Financial Services and Securities Act 2010 (“LFSSA”). We will focus on providing business success tools for High-Nett Worth Individuals (HNWI), Corporations, and Offshore Governmental Authorities.

1. Labuan Company Incorporation and Management Service
-We provide Labuan company Incorporation and annual management service.

2. Labuan Foundation Set up and Management Service
-We provide Labuan Foundation set up and annual management service.

3. Labuan Trust Set up and Management Service
-We provide Labuan Trust set up and annual management service.

4. Labuan Offshore Bank Opening and Management Support Service
-We will provide Labuan corporate account and management support service.

5. Labuan Work Permit Acquisition and Renewal Support Service
-We provide Labuan Work Permit Acquisition and Renewal Support service for the directors who wish to migrate in Malaysia.

6. Labuan Financial License Acquisition Support Service
-We will provide Labuan Financial License Acquisition and Management Support Services wish to acquire financial licenses.

7. Custody Service
-We provide Custody service to corporations.

8. Escrow Service
-We mainly provide Escrow service to corporations.

9. Nominee Service
-We mainly provide Nominee service to Financial institution and corporations.

10. Accounting and Administration Service
-We provide Accounting and Administration services to our clients.

11. Comsec System Development and Maintenance Service
-We mainly provide Comsec system development and maintenance service to offshore governmental authorities.

Our service can be submitted together with KYC documents by filling out the necessary information on the client application form. Kindly contact us for access to the client application form.

In principal, any person over the age of 18 can sign the Witness field. However, relatives (such as family members) are not allowed to sign.

CSA is an abbreviation for Customer Service Agreement. All clients who use our company must sign CSA.

NDA is an abbreviation for Non-Disclosure Agreement. When dealing with important confidential information, both parties sign an agreement not to disclose confidential information we have known and learned in business. We conclude mainly during M&A deals and employment agreement with staff.

Bona Trust Corporation will strive to protect personal information keep from clients and provide further reliability and security. Personal information keep from us will not be disclosed to third parties unless there is a request for disclosure about your personal information from the principal. As for the contents entered in the inquiry form, confidentiality is protected by advanced encrypted communication (SSL communication).

Our privacy policy is as follows:-

1. Purpose of Personal Information Protection Policy
The purpose of this policy is to realise the protection of reliable personal information and to provide continued peace of mind to clients.

2. About personal information we keep
Personal information that our company keeps from clients includes “name”, “address”, “telephone number”, “mail address”, “date of birth”, “sex”, “items essential for providing other services” we will do it for you.

3. About the use of personal information
We will use the personal information you received from the customer for the following purposes. In the case of using personal information for purposes not stipulated below, we will do in advance with the consent of the clients.

・Provide business negotiations with us and information required for agreement
・Request of quotation and answer to the consultation and sending documents
4. About the handling of personal information
We will take reasonable protection measures in order to manage the personal information you gave us carefully and to prevent the risk of leakage, loss, misuse, falsification and unauthorised access.

5. About the consignment of personal information
We do not provide personal information to third parties without obtaining the consent of the person in advance.

Furthermore, in order to improve the quality of our service and to further enhance the convenience for our clients, we may delegate part of our handling to external contractors (ex : banks etc.), we strive to instruct and supervise the third party to conduct appropriate investigation so as to ensure the safety management of personal information entrusted with handling by conducting strict investigation on the third party.

6. Disclosure Request for Personal Information
We will disclose information promptly when there is a request for disclosure about your personal information from the principal. In that case, if we can not confirm that you are the principal, we will not respond to the disclosure at all.

However, this does not apply to disclosure of transaction information suspected of money laundering due to drug trafficking, trafficking in persons, export of weapons, etc., as requested by foreign governments (Kindly refer to the “Anti Money Laundering Guidelines” for details).

7. About correction of personal information
If there is an error in the content of personal information and there is a request for correction, addition or deletion from the person yourself, we will correspond promptly to these requests after confirming the facts.

In that case, in case we can not confirm that you are the principal, we will not respond to these requests at all.

8. Change of privacy policy
The contents of the privacy policy may be changed. With regard to the policy after change, unless otherwise specified by us, the validity shall come into effect from the time it is posted on our website.

Anti Money Laundering Guidelines
Bona Trust Corporation has established the following Anti Money Laundering (hereafter referred to as “AML”) guidelines as a countermeasure against money laundering, and will contribute to the further sound development of an appropriate Labuan Financial Centre.

Our AML guidelines are as follows.:-

1. AML Guidelines
This guidelines is constructed for compliance with applicable AML requirements.

2. Key person of Bona Trust Corporation (hereafter referred to as “BTC”)
Managing Director: Yudai Watanabe (hereafter referred to as “MD”)

3. AML related knowledge and development of BTC
BTC has background and hands-on expertise AML-related matters.

Frequently, they attend AML- and other relevant- seminars & conferences, and are maintaining up to date.

4. AML Guidelines Statement (“the Guidelines”)
It is the guidelines of BTC to prohibit and actively prevent money laundering and any activity that facilitates money laundering or the funding of terrorists or criminal activity. The responsibility for the implementation of the guidelines rests with the MD. The MD specifies the AML related procedures for the aforementioned implementation with the present guidelines.

5. Definition of Client
A client or potential client of BTC in relation to entity incorporation / escrow or custody services is the legal entity or physical person having an agreement with BTC for services.
Consequently, the background characteristics of the aforementioned entity or person are the characteristics attributed to the legal structure for AML-risk assessment purposes.

6. Client Acceptance Policy (“the CAP”)
BTC recognizes that the risk of money laundering varies based on characteristics of clients, and hence does not accept new clients where any of the following apply:

Customer related risk-facts:

i. Refusal or other form of Failure of client to provide appropriate due diligence or legitimate rationale for engagement or level of acceptable direct communication
ii. Client’s or Parent’s company shares are in bearer form
iii. Client appears having doubtful creditworthiness or closely relates to substantial negative information (third party checks/database) and/or publicity
iv. Client is related to or is a non-US citizen

Geographical related risk-facts:

v. Client resident in country which inadequately apply Financial Action Task Force’s (“the FATF”) recommendations, incl. (may vary from time to time at the discretion of BTC):

a. Iran *
b. Democratic People’s Republic of Korea *
c. Algeria **
d. Ecuador **
e. Indonesia **
f. Myanmar **
g. Ethiopia ***
h. Pakistan ***
i. Syria ***
j. Turkey ***
k. Yemen ***

* Jurisdictions subject to a FATF call on its members and other jurisdictions to apply countermeasures to protect the international financial system from the on-going and substantial money laundering and terrorist financing (ML/FT) risks emanating from the jurisdictions.

** Jurisdictions with strategic AML/CFT deficiencies that have not made sufficient progress in addressing the deficiencies or have not committed to an action plan developed with the FATF to address the deficiencies. The FATF calls on its members to consider the risks arising from the deficiencies associated with each jurisdiction, as described below.

*** Identified in the FATF document, “Improving Global AML/CFT Compliance: On-going Process” due to their progress in substantially addressing their action plan agreed upon with the FATF

Business type related risk-facts:

i. Client with non-acceptable business profile, incl. (may vary from time to time at the discretion of the MD):

a. Cash intensive businesses
b. Weapons and ammunition
c. Adult industry products and services
d. Entertainment night-clubs
e. Unregulated charities and non-profit organizations

Stricter than policy:

BTC may at their full discretion reject engaging in any business/client
engagement for other reasons in addition to the aforesaid risk-facts.

7. Client Acceptance Decision
The MD can take BTC’s decision for acceptance of a client.

A rejection of a client is followed by a communication to the affected party informing of same with reference to the CAP only (without the need of detailed justification of the reasons).

In the event of a rejection for high-risk money-laundering related reasons, as per the judgement of MD, justifying the notification of authority, the MD will inform so as to prevent the rejected party from finding refuge to establish via other arrangements/providers in the applicable territory/jurisdiction.

8. Default Normal Risk Classification
Based on the CAP, BTC classifies and treats all its clients as per the Normal
Risk Classification category since at least Simple Due Diligence is applied always.

9. BTC Business Profile categorisations
Based on BTC fields of expertise:

The MD assigns 1 of 2 basic business categorization to new clients as follows:

General Field:
1 of 2: Business history of shareholders and directors and business plan of the entity

Specialised Field:
2 of 2: Corporate relationship between client and business partner

10. Norms regarding BTC Clients / Commonly Non Face-to-Face applicability
The typical client (person or legal entity) of BTC seeks utilisation of Labuan offshore entities or Offshore transactions

Due to the aforesaid, the typical client of BTC is Non-Face-to-Face as per the common norm of the relevant market.

11. Know-your-Client (KYC) and Client records/information
Communication details verification, ID/Passport verification, Corporate certificates verification (if applicable) and Additional Information Collection, is done by means of communication with the Client (client-parties) before inception of business relationship or around the time of commencement of it.

Contact details are obtained and regular communication with each client is done by MD; more often for client whose affairs suggest so and vice versa.

Additional Information Collection:
i. Reason for establishing trading account;
ii. Identification documents and contact details of person or each director(s) / shareholder(s) / beneficiaries of the Client / Structure;
iii. Professional-status and relevant background of person or each director(s) / shareholder(s) / beneficiaries of the Client / Structure;
iv. Utility bill or Bank statement showing residential address;
v. Full-set of corporate/statutory documents/certificates;

If deemed necessary:
i. Bank reference;
ii. Certificate of Incumbency (if structure involved)

Third party check at discretion of BTC:
World Compliance ® * verification of Passport / ID, Structure name-check, PEP check, and Adverse facts-check of each director(s) / shareholder(s) / beneficiaries of the Client / Structure;

*World Compliance ®:
Information database service providing reliable screening and information to assist
with compliance with (Information survey database of financial institutions provided by THOMSON REUTERS)

(among others):
3rd EU AML Directive
OFAC, Office of Foreign Affairs
FATF, Financial Action Task Force

12. Ongoing Monitoring
The occurrence of client related events (transactions, deviations from norm etc.) are dynamically/closely monitored by MD, due to the nature of modus operandi of BTC and its platform/systems.
Particular events, incl. but not limited to the below Risk-alerts, call for an interim review of client information and affairs relating to BTC, as well as attempt for clarifications from client’s side.
Risk-alerts: indicative list (not exhaustive) and areas:

i. Presenting Power of Attorney that limits the power of Director
ii. Request for cash deposit arrangement above critical-defined level (set at:
Fixed amount monthly; threshold for special attention as per IFSC conditions)
iii. Sudden surge of activity level
iv. Frequent changes of account info and person(s) involved
v. Lack of communication with / Unable to reach client or delay for information provision
vi. Transaction request: unusually complex, or inconsistent with profile and knowledge BTC has developed about client
vii. Mismatch or Lack of information in critical banking or legal or instruction documents

13. Maintenance of Client List
At BTC is responsible for the maintenance of a reference Client List of BTC that carries at least following information:
– Name of Person / Entity
– Contact information
– Date of account opening
– ID of account
– Account Balance
– Total activity (trading volume)

14. Records keeping
BTC maintains records of all client info in its possession (hard-copy or soft-copy) for a minimum of 7 years following a complete termination of client relationship.

15. Long-term scheduled Review of Client information
Without limiting or compromising any provisions of section 12 “Ongoing monitoring”, the MD executes communication with- and review of- client and its information (files), all or specific clients:

– If it has been decided / deemed necessary to conduct an all-presently-existing-clients review (advisable every 3 years); OR
– If a considerably active client expands into new affairs in business and with BTC; OR
– At a more frequent time or other timing, and at the full discretion of MD;
OR whichever occurs first:
– If certain client(s) have been relatively inactive for a respectable period of time
(advisable period: 1 year);
– If a min 1-year-inactive client returns to BTC with activity;

16. Internal evaluation & Reporting to Labuan Financial Service Authority
Any knowledge or suspicion that may arise in BTC of money laundering or terrorist financing activities or related activities is put in writing onto report, and then evaluated jointly by Director.

And finally,

17. Reporting to Labuan Financial Service Authority
BTC shall report any and all information requested by LFSA from time to time.