Labuan — Securities License (LFSA) 2026

The Labuan Securities License from the LFSA authorizes investment advisory, securities research, securities administration, and securities dealing services from Labuan IBFC. A tax-efficient, LFSA-regulated entry point into capital markets intermediation for global clients — with Islamic securities licensing options available.

Regulator

LFSA

Labuan Financial Services Authority

Annual Fee

~USD $1,500

Corporate Tax

Last Updated

February 2026

— Last updated: February 2026 · 8 min read

What is a Labuan Securities License?

A Labuan Securities License is issued by the Labuan Financial Services Authority (LFSA) under Part IV of the Labuan Financial Services and Securities Act 2010 and its 2022 Amendment. It authorizes licensed entities to provide regulated securities-related services from Labuan IBFC — including investment advisory, securities research, administrative services relating to securities, and dealing in securities.

The license is the appropriate LFSA authorization for capital markets intermediaries, investment advisers, broker-dealers, wealth managers, and securities administrators seeking a regulated Labuan base for serving institutional and high-net-worth clients globally.

Important Distinction — Securities License vs. Money Broker

The Labuan Securities License covers securities-related services — investment advisory, dealing in equities, bonds, and capital market instruments. It is distinct from the Labuan Money Broker (Forex) license which covers FX, CFDs, and derivative instruments. Firms offering both securities and forex/CFD services typically hold both licenses. Zitadelle AG advises on the correct license combination for your specific service scope.

Permitted Activities

•Investment advice on securities — research, recommendations, and advisory services for equities, fixed income, and capital market instruments

•Administrative services relating to securities — settlement support, corporate actions processing, securities documentation

•Dealing in securities — quoting prices, arranging purchases and sales, order execution for clients

•Shariah-compliant securities services — for entities holding the Islamic Securities License variant

Activities NOT Covered (Important)

✕Portfolio management and discretionary fund management — requires a separate Labuan Fund Management License

✕Holding client assets or funds — securities licensees do not custody client assets

✕Forex, CFD, and derivative instrument dealing — requires a Labuan Money Broker or Investment Bank license

Strategic Benefits

3% Corporate Tax

Labuan securities entities pay 3% on audited net profits under LBATA. Capital gains: 0%. Withholding tax on dividends: 0%. Stamp duty on offshore instruments: 0%. One of the most tax-efficient capital markets licensing structures in Asia.

Islamic Securities License

LFSA issues a Shariah-compliant Islamic Securities License variant for entities targeting Islamic capital market clients. Requires a qualified internal Shariah Advisory Board and adherence to Islamic finance principles — unique in the ASEAN securities licensing landscape.

Global Reach

Labuan Securities licensees can serve institutional and HNW clients across Asia-Pacific, the Middle East, Europe, and beyond from a single LFSA-regulated entity. No geographic restriction on client geography.

Eligibility and Regulatory Requirements (2026)

To qualify for a Labuan Securities License, applicants must satisfy LFSA's corporate, professional, compliance, and financial requirements. Requirements have been updated under the Labuan Financial Services and Securities (Amendment) Act 2022.

Requirement	2026 Standard
Corporate structure	Labuan-incorporated company (Labuan Companies Act 1990)
Registered office	Maintained in Labuan IBFC — mandatory
Local representative	Authorized local representative for LFSA liaison
Directors/officers experience	Relevant capital markets experience required — advisory, dealing, or research
Fit and proper	All directors and key personnel pass LFSA assessment — no adverse regulatory history
AML/CFT framework	Mandatory — aligned with LFSA guidelines and FATF standards
Professional indemnity insurance	Required as determined by LFSA
Paid-up capital	Adequate financial resources demonstrated in business plan
Annual license fee	~USD $1,500 (or equivalent per LFSA fee schedule)
Timeline	3–6 months from complete application submission

For Islamic Securities License (Additional Requirements)

•Appointment of qualified Shariah experts to internal Shariah Advisory Board

•Shariah-compliant business plan and operational framework

•All activities structured in accordance with Islamic finance principles

•Ongoing Shariah audit and review

Securities License vs. Fund Management License vs. Money Broker

Three LFSA license types are commonly confused by applicants. The distinction matters — each covers different activities and carries different requirements.

Feature	Securities License	Fund Management License	Money Broker License
Investment advisory	✓ Yes	✓ Yes (within fund)	✗ No
Securities dealing	✓ Yes	✗ No (for fund only)	✗ No
Forex / CFD dealing	✗ No	✗ No	✓ Yes
Discretionary management	✗ No	✓ Yes	✗ No
Holding client assets	✗ No	✓ Yes (fund assets)	✗ No
PAMM/MAM accounts	✗ No	✓ Yes	✓ Yes
Islamic variant	✓ Yes	✓ Yes	Limited
Annual fee (approx.)	~USD $1,500	Higher	~USD $3,000–$5,000
Best for	Securities advisors, broker-dealers	Asset managers, fund operators	Forex brokers, CFD platforms

Many Labuan financial services firms hold multiple LFSA licenses to cover their full service scope. For example, a firm offering both securities advisory and forex dealing would hold both the Securities License and the Money Broker License. Zitadelle AG structures the optimal multi-license combination for each client's business model.

Who Should Consider a Labuan Securities License?

The Labuan Securities License is the right fit for the following business profiles:

•Independent investment advisers serving HNW and institutional clients with securities research and advisory — without discretionary portfolio management

•Introducing brokers — arranging securities transactions for clients through prime brokers or executing broker relationships

•Boutique broker-dealers operating in capital markets intermediation for equities, bonds, and structured products

•Securities administrators providing back-office, settlement, and documentation services for investment vehicles

•Islamic capital markets intermediaries — firms specifically targeting GCC and ASEAN Islamic investors

•International wealth managers seeking a regulated Labuan entity to complement onshore operations

•Family office advisory arms providing investment research and execution services to family structures

Step-by-Step Licensing Process

Pre-Application Strategy

Zitadelle AG reviews the business model, target client segments, service scope, and regulatory positioning. We determine whether the Securities License alone or a combination with Fund Management or Money Broker is optimal.

Labuan Company Incorporation

Incorporate a Labuan company under the Labuan Companies Act 1990. Prepare constitutional documents, establish the Labuan registered office, and appoint the local authorized representative.

Documentation Preparation

Compile the full application package — detailed business plan and financial projections, organizational structure and governance policies, AML/CFT framework, risk management procedures, fit and proper documentation for all directors and key officers, professional indemnity insurance arrangements, and (if Islamic) Shariah Advisory Board appointments.

LFSA Submission and Review

Submit to LFSA with statutory fees and required declarations. LFSA assesses economic substance, fit and proper standards, and operational readiness. Zitadelle AG manages all LFSA correspondence and clarification requests throughout the review process.

License Issuance and Ongoing Compliance

Upon LFSA approval, the Labuan Securities License is granted. Implement operational systems, begin annual reporting cycle, and maintain ongoing AML/CFT, governance, and compliance obligations.

Timeline note: Approximately 3–6 months from complete application submission. Documentation quality and LFSA processing are the primary variables.

Costs Overview (2026)

Cost Item	Amount
Annual license fee	~USD $1,500 (per LFSA fee schedule)
LFSA application processing fee	Statutory amount per current LFSA guidelines
Labuan company incorporation	Standard Labuan company fees
Professional indemnity insurance	Market rate — LFSA assessed minimum
Annual audit	LFSA-approved auditor fees
Shariah Advisory Board (Islamic only)	Qualified Shariah expert fees

The Labuan Securities License is one of the most cost-efficient regulated capital markets authorizations in Asia — with an annual license fee of approximately USD $1,500. Total annual operational costs (inclusive of compliance, audit, and registered office) are significantly lower than equivalent Singapore MAS or Hong Kong SFC licenses.

Jurisdiction Comparison

Feature	Labuan IBFC	Singapore (MAS)	Hong Kong (SFC)	Mainland Malaysia (SC)
Regulatory recognition	International	Very High	Very High	Domestic
Annual license fee	~USD $1,500	SGD $4,000–$10,000+	HKD 23,740+	MYR-based
Corporate tax	3%	17%	16.5%	24%
ASEAN market access	Excellent	Strong	Moderate	Strong (domestic)
Islamic securities	Yes	Limited	Limited	Yes
Setup complexity	Moderate	High	High	Moderate
Best for	Offshore advisors, Islamic finance	Regional HQ, institutional	Global institutional	Malaysia domestic

For capital markets intermediaries targeting ASEAN and global clients who do not require the regulatory prestige of Singapore MAS or Hong Kong SFC, Labuan offers a compelling balance of regulatory credibility, tax efficiency, and setup accessibility. The Islamic securities licensing option is particularly unique — few competing jurisdictions offer a fully LFSA-regulated Shariah-compliant securities framework.

How Zitadelle AG Assists

•Pre-application business model review and license type selection

•Labuan company incorporation under the Labuan Companies Act

•Full LFSA securities license application preparation — business plan, governance, AML/CFT, risk framework

•LFSA submission and regulatory liaison throughout the review process

•Islamic Securities License support — Shariah Advisory Board structuring and Shariah compliance framework

•Professional indemnity insurance advisory

•Multi-license structuring — Securities + Fund Management or Securities + Money Broker combinations

•Annual compliance support — LFSA reporting, license renewal, governance maintenance

Labuan office note: Zitadelle AG maintains an administration office at Office 5, Unit F25, 1st Floor, Paragon Building, Jalan Tun Mustapha, F.T. Labuan — providing direct LFSA access, local representative services, and on-the-ground operational support for securities license applicants.

Frequently Asked Questions

Investment advisory and securities research, administrative services relating to securities, and dealing in securities (quoting prices, arranging purchases and sales). It does not cover forex/CFD dealing, discretionary portfolio management, or holding client assets — those require separate LFSA licenses.