Labuan Foundation
The Benefits
“….a particular feature of Labuan’s Foundations Law is the introduction into it of important features from Labuan’s Trust Law covering asset protection, anti-forced heirship, liability, migration of foundations, and secrecy and provision of information.”
“Except as otherwise provided by the Act, the Court or the Charter and Articles, every member of the Council, Supervisory Person, Officer, or Secretary shall deal with and treat all documents and information relating to a Labuan foundation as secret and confidential.”
Source: Mark Lea, Partner at Lea & White, www.labuanibfc.com
- Protected by secrecy clause of Labuan Foundation Act 2010.
- Doesn’t recognize foreign court ruling.
- Allow re-domiciliation to other recognized jurisdictions.
- All Council members can be family members.
Mid-Shore Financial Center
Labuan International Business and Financial Centre (Labuan IBFC) presents a wide range of business enabling solutions striking ideal balance between client confidentiality, cost efficiency and compliance with international best standards and practices. As a ‘mid-shore’ international business and financial centre, Labuan IBFC offers the best of both off-shore and on-shore jurisdictions combined.
Advantages
- Registered corporate body with separate legal entity.
- Unenforceable of foreign claim or judgment and cannot be forcefully liquidated to satisfy other obligations such as claims arising from divorce, lawsuit, creditors or customary inheritance claims (After 2 years).
- Protection against forced heirship.
- Information concerning the Labuan foundation is not on any public record.
- The identities of the Beneficiaries and Founder are only known to the Secretary (Labuan Trust Company).
- No tax in Labuan on non-trading activities. No withholding tax /capital gain tax / inheritance tax.
- Founder can reserve powers and rights over the property endowed in a foundation.
- Distributions by a Labuan foundation to its beneficiaries are tax-exempted in Labuan. (However, the beneficiaries will need to satisfy their own tax liabilities in their respective jurisdictions of tax residence).
- No foreign exchange controls.
- No stamp duty on all instruments relating to offshore business activities.
The wealth succession solution
A Labuan foundation is a unique wealth holding, preservation and protection tool which is one of its kind in the whole of Asia. A foundation is a legally registered entity for managing wealth. The foundation may be viewed as a hybrid between a trust and company. It provides all the protection of a trust with a familiar structure of a company. It can be used as a family office to ensure dynastic succession, investment management and family governance too. A foundation is a high effective succession tool to avoid the probate process, inheritance tax and preserving family legacy.
Bespoke characteristics
Labuan Foundation – Low cost, High benefit
In order to setup Labuan foundation, please contact operations@cogentassets.com for further detail.