Labuan, Malaysia — Investment Banking License (LFSA) 2026
The Labuan Investment Banking License from LFSA is the broadest single authorization available in Asia for non-domestic financial institutions — covering securities dealing, forex, derivatives, PAMM/MAM fund management, M&A advisory, underwriting, and cryptocurrency activities (with LFSA approval). 3% corporate tax on net profits. Notable license holders include Exness, RoboMarkets, and B2Broker.
Why the Labuan Investment Bank License Is Distinctive
The Labuan Investment Banking License occupies a unique position in the global financial licensing landscape. It is not a standard investment dealer or broker license — it is a full investment banking authorization under LFSA supervision that covers the breadth of activities that would require multiple separate licenses in most other jurisdictions. A single Labuan Investment Banking License can cover securities dealing, forex and CFD intermediation, derivatives, fund management (PAMM/MAM), corporate finance and M&A advisory, underwriting, and — with specific LFSA approval — cryptocurrency-related activities.
The combination of this breadth with a 3% corporate tax rate on net profits under LBATA, ASEAN gateway positioning, and the credibility of the LFSA regulatory framework is why globally recognized brokerage and financial services groups have chosen Labuan. Exness, RoboMarkets, and B2Broker all hold Labuan Investment Banking Licenses — demonstrating that the license is commercially serious and institutionally accepted.
Key Features
| Feature | Details |
|---|---|
| Regulator | LFSA (Labuan Financial Services Authority) |
| License type | Investment Banking License |
| Min. paid-up capital | MYR 10,000,000 (~USD $2.2M) |
| Corporate tax | 3% on net audited profits (LBATA) |
| Scope | Securities, forex, derivatives, PAMM/MAM, M&A, crypto |
| Substance required | Min. 2 employees + MYR 50,000 annual Labuan expenditure |
| Physical office | Required in Labuan |
| Annual audit | Required |
| Annual licence fee | USD $10,000 (2026 revised fee) |
| Foreign ownership | 100% |
| Timeline | 3–6 months |
| Notable licensees | Exness, RoboMarkets, B2Broker |
Permitted Activities (Full Scope)
Securities dealing — buying and selling of equities, bonds, and listed instruments on behalf of clients
Forex dealing and intermediation — spot and forward FX, multi-currency trading platforms
CFD and derivatives dealing — contracts for difference, options, futures, and structured derivative products
PAMM/MAM fund management — managed accounts, pooled managed account structures, portfolio management vehicles
M&A advisory — corporate finance advisory, merger and acquisition deal structuring and execution
Capital markets — underwriting, placement, and advisory services for equity and debt issuances
Asset management — discretionary and advisory portfolio management for institutional and high-net-worth clients
Cryptocurrency activities — with specific LFSA approval, crypto dealing, custody, and related services can be incorporated into the investment banking scope
Why Notable Brokerages Choose Labuan
3% Tax + Broad Scope
No other jurisdiction combines 3% corporate tax on profits with the full investment banking activity scope of the Labuan license.
MT4/MT5 Compliant
The Labuan Investment Bank License is explicitly compatible with MetaQuotes MT4 and MT5 platform operations — the standard broker infrastructure globally.
ASEAN Banking Infrastructure
Labuan's 50+ banks provide the settlement, custody, and correspondent banking relationships that support meaningful investment banking operations.
Requirements
- •Labuan-incorporated company under LFSSA
- •MYR 10M (~USD $2.2M) minimum paid-up capital
- •Minimum 2 qualified full-time employees based in Labuan
- •Minimum MYR 50,000 annual operating expenditure in Labuan
- •Physical office in Labuan IBFC (not virtual address)
- •Board of directors with relevant investment banking/financial services experience
- •AML/CFT framework, compliance officer, risk management framework
- •Technology infrastructure plan covering platform, risk systems, and client reporting
- •Annual audited financial statements
- •Annual licence fee: USD $10,000 (revised 2026)
Labuan Investment Bank vs. Labuan Money Broker
| Feature | Investment Bank License | Money Broker License |
|---|---|---|
| Min. capital | MYR 10M (~$2.2M) | RM 500K–1.5M |
| Scope | Full investment banking + forex + crypto | FX/CFD + crypto (DFS extension) |
| Annual fee | USD $10,000 | USD $5,000–10,000 |
| M&A / underwriting | Yes | No |
| PAMM/MAM | Yes | Limited |
| Best for | Full-scope investment banking groups | FX/CFD brokers, crypto exchanges |
How Zitadelle AG Assists
- ✓Labuan company incorporation
- ✓LFSA investment bank application
- ✓Capital structuring
- ✓Compliance officer and director sourcing via HRFinEase
- ✓AML/CFT framework
- ✓Technology infrastructure advisory
- ✓Banking introductions
- ✓Annual compliance from Labuan office
Zitadelle AG Labuan Office: Office 5, Unit F25, 1st Floor, Paragon Building, Jalan Tun Mustapha, F.T. Labuan, Malaysia
Frequently Asked Questions
An LFSA authorization for full-scope investment banking from Labuan IBFC — covering securities dealing, forex, derivatives, PAMM/MAM, M&A advisory, underwriting, and cryptocurrency activities (with LFSA approval). MYR 10M minimum capital, 3% corporate tax, notable licensees include Exness, RoboMarkets, and B2Broker.
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Disclaimer: This page is for informational purposes only and does not constitute legal, tax, or regulatory advice. LFSA requirements may change. Last updated: April 2026.