Why is Labuan Foundation So Special?

Labuan Foundation Truly One of The Best

Labuan Foundation is the best choice for your wealth management tool, more so if you reside in Asia. No Asia countries offer private foundations that governed by Foundation Acts. Labuan Foundation is governed by Labuan Foundation Act 2010. To-date, there are 21 jurisdictions worldwide, including Labuan has Foundation Acts that govern the wealth management activities. Labuan Foundation can be re domiciled to one another among these jurisdictions and vice versa. Here is the 20 jurisdictions worldwide that has Foundation Acts:

Why Labuan Foundation So Special

The Summary of the Foundation Acts in the Different Jurisdictions:

LabuanMauritiusPanamaLiechtensteinSwitzerlandJerseyIsle of ManSeychelles
Private and/or charitablePrivate and/or charitablePrivate and/or charitablePrivate and/or charitableOnly charitable foundations.
No private family foundation
Private and/or charitablePrivate and/or charitablePrivate and/or charitable
No License RequiredRequired if want benefits from DTANo License RequiredNo License RequiredNo License RequiredNo License RequiredRequire LicenceNo License Required
No minimum capital/endowmentsNo minimum capital/endowmentsMinimum Capital USD 10KMinimum Capital CHF 30,000Authorities will check initial endowment is sufficient to achieve goalsNo minimum capital/endowmentsNo minimum capital/endowmentsUSD 1
Required to register with the RegistrarRequired if obtain legal personalityRequired to register with the RegistrarRequired to register at Office of Land & Public DomainFamily foundation – no registration required. Other foundation – register @ commercial registerRequired to register with the RegistrarHigh court has extensive supervisory powersRequired to register with the Registrar
Tax: Investment Holding: 0% or Trading Activities: 3% or pay flat fee of RM20,000Exempt if non-residentExempted0.1% on declared net assets subj to min.of CHF1,000Tax exempted for charitable purposes Tax freeTax freeTax free
Resident Secretary RequiredResident Secretary RequiredSecretary not required but need a Resident AgentAgent for ServiceNo requirement for specific local SecretaryQualified member a “guardian” requiredNo requirement for qualified personAppoint registered agent who may not be resident

Labuan Private Foundation-Truly one of its Kind To Help You Create a Lasting legacy!

Labuan Private Foundation is the ultimate vehicle for personal wealth preservation and succession. Smart investor will use Foundation to empower himself to secure a sound future! Here is the outlined of the key advantages of Labuan Private Foundation for your better understanding.

16 key advantages of Labuan Private Foundation

  • You have 100% control all the time!Why Labuan Foundation So Special
  • You can design how your foundation is to be structured, managed, the types of assets to hold, and beneficiaries with freedom to change anytime through the Charter!
  • Founder can be individuals or corporations!
  • Relatively low cost to operate the Foundation compared to Trust!
  • Unenforceability against any legal claims after 2 years!
  • It is a corporate body entitled to enter contact and perform lawful dealings!
  • It is a legal entity fully protected by Labuan Foundation Act 2010, without need to refer to other jurisdiction law!
  • Duration of foundation can be perpetual or fixed time of your choice!
  • No minimum amount of assets requirement to be injected for initial set-up!
  • Permissible to hold Malaysian assets! 
  • Muslims are permissible to set-up the Labuan Foundation with or without syariah compliant!
  • Can be used for charitable purposes!
  • Protected with highest degree of confidentiality!
  • It can re-domicile to another country of your choice anytime!


Labuan Private Foundation can also used to manage its own property and assets for charitable or non-charitable purposes for the following activities:

• Personal wealth management
• Intergenerational wealth succession via a Family Office
• Making grants and charities
• Prevention and relief of poverty
• Advancement of religion, profession or education
• Advancement of health crisis including prevention and relief of human sickness
• Social and community advancement care for the elderly, disabled and the young
• Advancement of culture, arts and heritage

Labuan Private Foundation not only prefect as wealth management tool, the main attraction also on the key advantage on tax which provide great opportunities with great savings in a long run.

Tax Profile of Labuan Private Foundation as follows:

* Low corporate tax: 3% or RM20,000 on Trading activities
* As
 an Investment Holding- zero corporate tax
* Income derived from Malaysian assets and business dealings are subject to 24% tax  
* No withholding tax on interest, management fee, royalty fee and technical fee
* No tax on distribution of gains to the beneficiaries of individual or corporate
* 0% tax on Directors’ fee payable to foreign individual or corporate director
* 50% tax rebate on personal income of professional expatriate employment
* No stamp duty payable for execution of Charter and Articles of Association and other instruments relating to offshore dealings
* Ability to access to more than 70 Malaysia Tax Treaty partners 
* Tax exempted on Zakat payment

Setting Up Labuan Foundation

Send us your enquiry today for more on Labuan Private Foundation if it able to meet your objective for wealth legacy!



Purpose of Set Up:


Founder Nationality or Country of Registration

What is your objectives to achieve for setting up the Foundation?

Currently do you have any Foundation set up in other Jurisdiction?

Is your current Foundation to be re domiciled to Labuan?

Other information to send us: