Labuan commodity trading (LITC) licence, filed under our own licence.
Buy, sell and broker petroleum, LNG, minerals, agriculture and chemicals under the Labuan LITC framework. 3 percent tax at substance compliance, designed before filing.
Make an enquiryLITC licence, substance is the tax test.
As applicants approach Labuan FSA LITC licensing, capital is secondary to substance: three professional traders, two Labuan-resident full-time employees, RM3 million annual spend payable to Malaysian residents and RM100,000 spent in Labuan operations. The 3 percent tax rate hinges on the substance test.
QX Trust files LITC applications under our own Labuan FSA licence as the recognised party, designing the trader headcount, Malaysian spend allocation and operational footprint in Labuan before the file is opened.
Your commodity trading file, filed directly by the licensed firm.
QX Trust Co. Ltd is a Labuan Managed Trust Company headquartered in Labuan IBFC. We file applications as the recognised party, not through an intermediary. We serve you in English, Chinese and Malay.
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Labuan FSA licensed
LMT0081
Our Labuan licence
EN + ZH + MS
Language desks
Labuan IBFC
Headquartered
What sits in the Labuan LITC file.
Six deliverables prepared and assembled under one channel before submission to Labuan FSA.
Business plan and commodity scope
A business plan covering target commodities (petroleum, LNG, minerals, agriculture, chemicals), trade flows, counterparties and revenue projections.
Substance plan
Three professional traders identified, two Labuan-resident full-time employees, RM3 million Malaysian spend allocation and RM100,000 Labuan operating expenditure documented.
Fit-and-proper vetting
Director and shareholder vetting prepared for Labuan FSA approval. Commodity trading track record evidenced through past engagements.
Trading operations framework
Trading policy, risk-management framework, counterparty credit assessment, settlement and logistics arrangements documented.
Corporate governance
Corporate governance framework, internal controls, board composition and reporting cadence calibrated to LITC scale.
AML and tax substance
An AML manual, KYC for counterparties, tax substance plan ensuring 3 percent rate eligibility and audited reporting framework.
Four steps from scope to grant.
One channel, one owner, one timeline across the four phases of a Labuan LITC application.
Pre-licensing audit
Business model, commodity scope, substance plan and Malaysian spend allocation benchmarked against Labuan FSA LITC criteria.
File scope and drafting
Business plan, substance plan, trading framework, constitutional documents and fit-and-proper questionnaires drafted.
Submission and dialogue
File submitted under our Labuan FSA licence. We absorb regulator queries on substance, scope and counterparty exposure.
Licence grant and handover
Approval issued by Labuan FSA. We hand over operating documentation, substance-compliance calendar and tax reporting framework.
Frequently asked.
Direct answers on LITC scope, commodities, substance, tax and ancillary activities.
What is a Labuan International Commodity Trading Company?
A Labuan International Commodity Trading Company (LITC) is licensed under the Labuan Financial Services and Securities Act 2010 to buy, sell and broker physical commodities and related derivatives in foreign currency.
What commodities can a Labuan LITC trade?
Petroleum and petroleum-related products including liquefied natural gas (LNG), minerals, agriculture products, refined raw materials, chemicals, base minerals and coal. The list is set by Labuan FSA.
What substance does a Labuan LITC require?
At least three professional traders, with two full-time employees based in Labuan. Annual business spending of at least RM3 million payable to Malaysian residents in MYR is required, with at least RM100,000 spent for operations in Labuan.
What is the tax rate on a Labuan LITC?
Three percent of audited net profits when substance requirements are met. Labuan sits outside Malaysia's principal customs area, with customs-duty and sales-tax exemptions on most goods. Non-compliance with substance triggers a 24 percent tax rate.
Can an LITC undertake ancillary activities?
Yes. LITCs may undertake businesses ancillary to permissible commodity trading, including leasing, consultancy and brokerage. Each ancillary activity must remain consistent with the LITC licence conditions.
How must an LITC identify itself?
LITCs must clearly indicate on letterhead and documents that they are licensed as a Labuan International Commodity Trading Company under the Labuan Financial Services and Securities Act 2010.
Scoping a Labuan commodity trading licence?
Tell us about your commodity flows. We design the substance, allocate the Malaysian spend, and route the file under our Labuan FSA licence.
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