LABUAN FACTORING BUSINESS

 

Labuan Factoring Business Info

A. Introduction

 

 

Under Section 86 of Labuan Financial Services and Securities Act 2010 Factoring Business means the business of acquiring debts due to any person or institution at a discount or such other business as approved by the Minister of Finance (Malaysia).

 

 

B. Application Requirements

 

 

The applicant company must pay an annual fee of RM40, 000 to Labuan FSA on or before every 15th day of January for those with physical presence in Labuan and RM60, 000 for those without physical presence in Labuan Signed declaration by directors and senior staff of the applicant on confidentiality and secrecy.

 

 

C. Qualification Requirements

 

 

Applicant should meet the following minimum criteria:

 

  • Labuan Company incorporated or registered under the Labuan  Companies Act 1990;

  • Factoring companies registered under the  Labuan Financial Services and Securities Act 2010;

  • Special Purpose Vehicle (SPV) set up to facilitate inter-company factoring transactions; and

  • No adverse report from any reliable sources.

 

 

D. Operational Requirements

 

The applicant company:

 

  • has an option to either set up an office in Labuan or operate through its registered office. However all transactions must be done through Labuan and adequate and proper records and books of accounts must be maintained in Labuan

  • must maintain capital sufficient to manage the company's daily operations

  • must transact business only in foreign currency and not deal in Malaysian Ringgit except for the purpose of defraying administrative and statutory expenses

  • is prohibited from dealing with Malaysian residents other than those approved by Bank Negara Malaysia

  • must conduct its business with due diligence and sound principles and comply with the local laws and regulations where it services its clients

  • is to indicate clearly its name on its letterhead, stationery and other documents

  • must appoint an auditor

  • is to submit to Labuan FSA within three months after the close of each financial year, one copy of its audited annual balance sheet and profit and loss account

  • is to provide statistics and information as required by Labuan FSA in relation to prudential information, general business conduct and volume and direction of business in Labuan

  • must notify Labuan FSA of any change to its constituent documents, shareholdings, management or business plan; and

  • must comply with any other requirements issued by Labuan FSA from time to time.

 

 

E. Applicable Fees

 

All licensees are required to pay to Labuan FSA annual licence fees on or before 15 January of each year:

 

Annual Fee

 

  • RM 40,000 per annum

 

 

Our dedicated teams are more than happy to assist you in establishing, structuring and planning your Labuan Factoring and licensing application. Contact us today at info@zrctrust.com for free initial consultation without any obligation.