211010_kpmg-tax-summit-klAny company including a foreign company that wishes to incorporate in Labuan IBFC can only do so by appointing one of the licensed Trust Companies operating in the jurisdiction to act on its behalf. This is enshrined in the Labuan Companies Act 1990 and the Labuan Financial Services and Securities Act 2009.

These Trust Companies provide ancillary services such as company secretarial, resident directorships, audit and accounting services and company administration. Apart from corporate secretarial services, Trust Companies also provide services such as trusteeship for foreign-denominated bond issuances and trust products, administrator for mutual funds and administrative work for non-Labuan IBFC entities. In 2007, more Labuan Trust Companies provided business process outsourcing services to their global operations.

In the context of Trust Companies themselves, two types of licences are provided for under the new Labuan Financial Services and Securities Act 2010:

  1. as a licensed Trust Company incorporated under the Labuan Companies Act 1990, carrying out trust company business in Labuan; or
  2. as a licensed Labuan managed trust company which may be a Labuan company or a foreign Labuan company; or alternatively a foreign company licensed to carry out trust company business in other jurisdictions.

Trust Companies registered in Labuan are required to obtain prior written consent from the regulator, Labuan Financial Services Authority (Labuan FSA), should they intend to open an office outside of Labuan. As of 2008, there are 23 Trust Companies active in Labuan IBFC, ranging from specialist firms focused solely on Labuan through to the largest international firms operating in multiple jurisdictions.

In Labuan IBFC, Malaysian individuals and corporate entities are open to opportunities that will enable them to develop their expertise in trust-related work. Trust Companies registered in Labuan IBFC enjoy world-class infrastructure in a low operating cost environment.