Offshore funds

What are offshore funds

Offshore funds refer to funds registered outside of the host country, usually established in offshore jurisdictions such as the Cayman Islands, Mauritius, or the British Virgin Islands. Nowadays, due to economic globalization, funds are flowing around the world, and large PE institutions often accept funds from all over the world, but the management regulations for foreign investors vary greatly from country to country. These jurisdictions are very attractive for funds that focus on investing in China, because they usually allow investors from different countries to participate in the investment, and are not subject to US or Chinese laws and regulations.

Reasons to set up Labuan Private Family Foundation

Labuan Island is an international financial offshore area established by the Malaysian government in 1990. In 2001, the Labuan authorities positioned Labuan as a central bank. This allows Labuan companies to trade with local residents. With the popularization of private family foundations, Labuan itself also launched private family foundations. Labuan’s 2010 Foundation Act is one of the few in the world and the only one in Asia to have a comprehensive fund ordinance to protect the sustainable inheritance of wealth. Labuan Private Family Foundation's simple and flexible structure requirements and personalized cross-border low-tax asset management have attracted many high-net-worth individuals around the world to establish wealth management.

Benefits

  1. Low tax

    01

    The tax structure of Labuan Private Family Foundation is flexible. Compared to private family foundations in many countries, Labuan’s tax is relatively low. Labuan private family funds are exempt from foreign exchange control, withholding tax and asset tax. The Labuan Foundation is tax-free on the distribution income of its beneficiaries.

  2. Low threshold for establishment

    02

    Labuan private foundations are easier to set up than that in other countries. Some countries such as the Isle of Man and Mauritius require a registration license to establish a foundation. However, in Labuan, there are no capital and donation restrictions, and a foundation can be established with a minimum of $1.

  3. Perfect laws to
    protect your property

    03

    Labuan is one of the few countries in the world with laws that has a sound fund to protect your propery. At the same time, Labuan is also the only country in Asia that has fund laws. This makes Labuan Private Foundation more attractive in Asia-Pacific region.

  4. Two-year litigation period

    04

    The Labuan Foundation is protected by foreign claims and cannot be forced into liquidation to meet other responsibilities. The Labuan private family has a two-year litigation period to prevent foreign claims.

  5. Compliance with Islamic laws and regulations (Syariah)

    05

    Labuan International Business and Finance Center integrates Islamic finance into its traditional financial services and is recognized as a pioneer of Islamic finance in the world. Launched a private family foundation that complies with Islamic laws and regulations (Syariah). This has attracted many high-net-worth individuals from the Middle East to carry out wealth inheritance and management.

Application process

  1. 01
    Asset investigation, signing power of attorney

    Asset investigation, signing power of attorney

  2. 02
    Background check of founder, officer, and beneficiary

    Background check of founder, officer, and beneficiary

  3. 03
    Name availability check

    Name availability check

  4. 04
    Register charter and prepare for document of terms

    Register charter and prepare for document of terms

  5. 05
    Register a foundation with Labuan Financial Services Authority

    Register a foundation with Labuan Financial Services Authority

  6. 06
    Conduct account opening interview with banker

    Conduct account opening interview with banker

Submissions

  1. 1.Name and purpose of the foundation

    1.Name and purpose of the foundation

  2. 2.Documents of donated asset

    2.Documents of donated asset

  3. 3.The founder, chief officer, and beneficiary must submit a copy of passport, professional unit recommendation letter and bank statement/or related utility bill

    3.The founder, chief officer, and beneficiary must submit a copy of passport, professional unit recommendation letter and bank statement/or related utility bill

  4. 4.Complete company certificate documents. For more details, please refer to (Document List for Registered Labuan Private Family Fund)

    4.Complete company certificate documents. For more details, please refer to (Document List for Registered Labuan Private Family Fund)

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