Set up a Private Fund in Labuan
Updated on Friday 06th January 2017
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The region of Labuan, Malaysia, is an attractive business destination. Investors have several options when investing in Labuan. Businessmen interested in company formation in Malaysia can set up two types of commercial companies, but they can also open an investment fund. The authorities in Labuan offer the opportunity of investing in a private fund, which can be set up in accordance with the number of investors. Our team of company formation representatives in Malaysia can offer an in-depth presentation on the characteristics of a private fund in Labuan.
Register a Labuan private fund
Foreign investors who are interested in opening a company in Malaysia can set up their operations in Labuan through a private fund, also referred to as a mutual fund. In order to open a private fund, the investors will first have to set up a Labuan company.
At the same time, the investors can set up the private fund through a corporation, a partnership or a foundation.
The mutual funds in Labuan are regulated by the Labuan Financial and Services and Securities Act 2010. The local authorities also provide a regulation for the mutual funds established under the Sharia Law, which are regulated by the Labuan Islamic Financial and Services and Securities Act 2010.
The investment fund can be registered with the purpose of collecting funds in order to perform various investment policies. Investments in Labuan are usually carried out through a private fund, which can perform the following investment objectives:
• issue shares;
• real estate;
• land purchases;
• development projects;
In order to open a private fund in Labuan, the investors will have to notice the Labuan Financial Services Authority (FSA) on incorporation of the fund. It is not necessary to register with the institution. Our team of company formation agents in Malaysia can offer more information on this procedure.
Types of private funds in Labuan
The applicable legislation available in Labuan prescribes that the investment funds can be set up as private or public vehicles.
Private funds can be further separated in two main categories, in accordance with the number of investors:
• private funds with less than 50 investors, in which the minimum required contribution per investor is set up at RM 250,000;
• private funds which allow any number of investors, whose contribution must be of minimum RM 500,000.
Businessmen interested in further information on the private funds in Labuan are invited to contact our team of company formation consultants in Malaysia.