Guidelines on establishment of Labuan Marketing Office (“Guidelines”) issued by the Labuan Financial Services Authority (“Labuan FSA”) provides clarification with regards to the regulatory requirements for establishment of Labuan Marketing Office (LMO) by Labuan entities outside the Labuan island in Malaysia.
ROLE / PURPOSE OF LMO
- To undertake the following marketing activities:
- Facilitate meetings with existing clients; and
- Establish contacts with potential clients
- Its premise is not to be used for maintenance of books and records and no trading activities are undertaken through, from or in the LMO.
APPLICATION FOR LMO
The Guidelines is applicable to Labuan companies, including licensed entities, that intend to establish an LMO and there is no restriction to the number of LMO that can be established.
However, applicants that intend to establish an LMO under the Guidelines would not be allowed to have a Labuan Co-Located Office.
All Labuan companies must submit the application for establishment of LMO to Labuan FSA through a Labuan IBFC registered trust company.
For Labuan licensed entities, completed form may be submitted by:
- Labuan licensed entity;
- Labuan insurance manager or Labuan underwriting manager; or
- Labuan takaful manager or Labuan takaful underwriting manager.
The application should contain the following minimum information, subject to additional information being requested by Labuan FSA to facilitate the processing of the application:-
- address, contact details of the LMO including the officer in charge;
- organisation charts of the operational office in Labuan and LMO; and
- marketing plan that illustrates the activities that will be performed at the LMO, including 3-years financial projection (statement of comprehensive income and statement of financial position) of the company with the expansion through the LMO.
- Signboard of the LMO must contain the following:
- Labuan company’s name, easily legible in Romanised characters and printed on a signboard affixed at the entrance of the LMO;
- Incorporation/registration/licensed number; and
- The words “Labuan company/licensed entity regulated by the Labuan Financial Services Authority”.
- Comply with requirements of the relevant local authorities, wherever applicable.
- Provide notification to Labuan FSA within 30 days on any changes to the address of the LMO being affected including its business plan.
- LMO must submit a half-yearly marketing office activity report and other statistical information in such manner and frequency as may be determined by Labuan FSA with regards to its activities.
- Premise of the LMO should strictly be used for the purposes mentioned in this document.
Any person who fails to comply with the Guidelines commits an offence upon which Labuan FSA may undertake appropriate enforcement action to the extent provided by the law.
The annual fee imposed on each Marketing Office is payable when the application is approved by Labuan FSA and remains valid until 31 December of the year of approval. Subsequent annual fee is payable to Labuan FSA not later than 15 January of each calendar year.
Processing Fee (once off and non-refundable)
- RM1,000/- each application for Labuan licensed entity
- RM300/- each application for Labuan company
- RM7,500/- for each Marketing Office