Labuan Investment Banking License – Malaysia (2025 Guide)

Introduction to Investment Banking in Labuan, Malaysia

Labuan, a renowned international business and financial center in Malaysia, offers a robust and low-tax environment for investment banking institutions. Regulated by the Labuan Financial Services Authority (LFSA), investment banks licensed in Labuan can operate a wide array of financial services for both institutional and private clients.

This jurisdiction is ideal for companies aiming to access Southeast Asian markets and benefit from flexible regulations, confidentiality, and strategic geographic positioning.

What Can a Labuan Investment Bank Do?

A licensed Labuan Investment Bank is authorized to perform a broad range of regulated activities, including:

Core Services

• Provide credit facilities

• Offer consultancy and advisory services related to investment, M&A, and corporate finance

• Dealing in securities and managing client investment portfolios

• Foreign exchange (forex) trading and stock market transactions as principal or market maker

• Engage in interest rate swaps and derivatives or other financial risk management instruments

• Underwriting securities issuance for clients

• With an additional permission it can spot cryptocurrency, custody of cryptocurrency and derivatives based on the cryptocurrencies.

Digital & Advanced Capabilities

• Operate electronic trading platforms, such as MetaTrader 4 (MT4), MetaTrader 5 (MT5), or proprietary software

• Offer PAMM/MAM/LAMM account services for managed forex or CFD strategies

• Escrow services for corporate and financial transactions

With Additional LFSA Approval

• Conduct spot exchange transactions and custody of digital assets (e.g., Bitcoin, Ethereum, USDT)

• Issue or trade in cryptocurrency-based derivative instruments

• Operate as a money remittance counterparty

💡 This makes Labuan one of the few jurisdictions in Asia where regulated banks can offer both traditional and crypto-based financial services under one roof.

🧑‍💼 Who Can Apply? (Eligibility & Experience Requirements)

Shareholders & Directors

• Shareholders must be legal entities with a minimum of 3 years of proven profitable operations in the financial services industry (forex, securities, asset management, investment banking, etc.)

• Directors must be natural persons with at least 3–5 years of executive experience in regulated financial activities.

Proven Track Record

Applicants must submit:

• Audited financial statements covering the last 3 years

• Evidence of regulatory compliance in the home jurisdiction

• A detailed business plan showing a genuine intention to establish active investment banking operations in Labuan

Reporting & Regulatory Compliance

Licensed investment banks must comply with ongoing reporting and audit obligations, including:

• Annual submission of audited financial statements

• Audit by Labuan-licensed firms (Big 4 and local firms are accepted)

Regulatory Interviews

• An LFSA interview is part of the application process (via Zoom or in-person in Labuan)

• We assist you in preparing for the meeting and a local representative will attend with you

Local Staffing & Office Requirements

• Minimum 3 full-time staff based in the Labuan office:

  • Compliance Officer

  • Accounting/Finance Staff

  • Office Manager

• We provide local recruitment assistance to meet regulatory staffing requirements

Corporate Taxation in Labuan (2025)

• Corporate Tax: 3% on net audited profits

• Capital Gains Tax: 0%

• Withholding Tax: 0%

• Stamp Duty on Offshore Instruments: 0%

Labuan’s tax regime makes it one of the most tax-efficient jurisdictions for international investment banking.

Opening a Bank Account in Labuan

• Estimated Timeframe: 3–4 weeks

• Banking Partners: Local and international banks

• Key Factors: Valid documentation, business model clarity, and strong compliance posture

Confidentiality & Asset Protection

• Shareholders and directors’ names are not available to the public

• The Labuan IBFC ensures client confidentiality and asset protection under a reputable legal framework

Examples of Investment Banks in Labuan

Several reputable investment and financial service providers have established operations in Labuan, including:

• Exness Investment Bank

• RoboMarkets Investment Bank

• B2 Broker (B2 Capital) Investment Bank

• Trive Investment Bank Asia Ltd.

  
  

📝 These institutions demonstrate Labuan’s capability as a trusted offshore investment hub in Asia.

Why Choose Labuan for Investment Banking?

• Strategic location in Asia-Pacific

• Access to both traditional and digital finance ecosystems

• Strong legal framework and reputable financial regulator

• Low-tax jurisdiction with extensive double tax treaties

• Option to offer cryptocurrency services under regulation

How We Help

We provide end-to-end support for your Labuan investment banking license application:

• Company formation

• Preparation of the business plan and policies

• Regulatory liaison with LFSA

• Office setup and local staffing

• Assistance with bank account opening

• Ongoing compliance and audit support

Start your Labuan Investment Banking journey with expert guidance.
📩 Contact us today for a personalized consultation and get your license process started.