3-1. About Labuan Foundation Overview


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.


3-2. About Labuan Foundation Incorporation


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.


3-3. About Labuan Foundation Renewal


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

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


3-4. About Labuan Foundation Strike Off


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.


3-5. About the position of Labuan Foundation


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.


3-6. Other general questions


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.

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.