Give your legacy a foundation of its own.
A separate legal entity under the Labuan Foundations Act 2010. It owns your assets in its own name, carries your succession terms in its charter, and we act as its officer and licensed secretary.
Make an enquiryA legal entity that owns the wealth, not the family.
For families from civil-law backgrounds, succession across borders raises one hard question: how do you place assets in a structure that survives a death, resists forced-heirship claims, and stays governed by your own rules rather than local probate.
We establish Labuan foundations under the Labuan Foundations Act 2010, acting as officer and licensed secretary. The result is a self-owning entity that holds property worldwide and passes it on under the terms set in its charter.
See why families use itWho a Labuan foundation is for.
It suits families who want an entity, not a person, to own and pass on the wealth.
Civil-law families
Families in Europe, China, Taiwan or Indonesia, for whom a foundation is the familiar vehicle.
A self-owning structure
Founders who want assets owned by an entity in its own name, not held by a person.
Cross-border succession
Passing worldwide assets to the next generation under one charter, beyond forced-heirship rules.
Philanthropy with family
Holding charitable and private purposes together in a single, governed structure.
A licensed Labuan officer and secretary, accountable to you.
Because we hold the Labuan FSA licence ourselves, the firm that files your foundation and runs it afterwards is the regulated firm you spoke to, not a broker who sub-contracts the role. We serve you in English, Chinese and Malay.
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How a Labuan foundation works.
A foundation sits between a company and a trust. It is a legal entity, like a company, but it has no shareholders and answers to a charter rather than to owners. You endow it, and from then on it owns the assets itself.
- The founder endows property and sets the charter, the foundation's constitution.
- The foundation owns the assets in its own name, with its own legal personality.
- An officer administers it, and a licensed Labuan trust company acts as secretary and files with Labuan FSA.
- A council can supervise against the charter, and a supervisory person can safeguard the assets.
- Beneficiaries receive what the charter provides, with no automatic right to the assets.
How a Labuan foundation is structured.
The parties, registration, endowment, assets and tax under the Labuan Foundations Act 2010.
- The parties
- A founder, an officer for administration, a licensed Labuan trust company as secretary, an optional council and supervisory person, and the beneficiaries.
- Registration
- Mandatory with Labuan FSA, filed by the licensed secretary. The foundation exists from the date of its certificate.
- Endowment
- No substantive minimum, only a nominal asset of at least USD1. The charter names the initial property, endowed within twelve months of registration.
- What it can hold
- Property worldwide in its own name. Malaysian-situated property requires prior Labuan FSA approval for a private foundation.
- Duration
- Indefinite or a fixed term, as set in the charter, which suits succession across generations.
- Purposes
- Charitable or private. An Islamic foundation runs under the Labuan Islamic Financial Services and Securities Act on Shariah terms.
- Beneficial owners
- Identified and kept in a register, notified to Labuan FSA.
- Tax
- Non-trading investment income, such as dividends and interest, is not subject to tax under LBATA where substance is met. Trading is taxed at 3% of audited net profits.
Why families use a Labuan foundation.
Ownership, succession, protection and tax under the Labuan Foundations Act 2010.
A structure that owns itself
The foundation holds the assets in its own name, separate from the founder. It carries on when an individual owner could not.
Succession on your terms
Wealth passes under the charter you set, without probate. A Labuan foundation can exist indefinitely.
Held beyond forced-heirship claims
Under Section 61 of the Act, foreign forced-heirship, matrimonial and succession claims are not enforceable against a validly established foundation.
Held beyond personal creditors
Under Section 58, a creditor must prove the founder set up the foundation with the principal intent to defraud them. Protection is strong, not absolute.
Bring an existing foundation in
A foundation set up in another country can be redomiciled to Labuan, where that country allows it, keeping its history intact.
Keep more of what you pass on
Non-trading investment income is not taxed under LBATA where the substance rules are met, and distributions of profit after tax to beneficiaries are exempt from Malaysian income tax under the current exemption order.
A foundation or a trust?
A foundation is a registered legal entity that owns its assets in its own name under a charter. A Labuan family trust is a relationship: a trustee holds assets for your beneficiaries under a deed, with no separate entity. Foundations suit civil-law families; trusts suit common-law backgrounds.
We help you choose between the two, and coordinate the structure with your will and estate plan through our legal services.
How we set up your Labuan foundation.
Four steps to establish and fund the foundation, run by the team that administers it afterwards.
Consultation and scope
A confidential talk on objectives, the family and the assets. We confirm a foundation fits and flag any cross-border points before drafting.
Charter and articles
We draft the charter, articles and by-laws to your situation: purpose, governance, distribution rules and succession terms.
Registration with Labuan FSA
We file as licensed secretary, take up the officer role, and obtain the certificate that gives the foundation its legal personality.
Endowment and administration
You transfer the property in. We then run records, accounts, distributions and regulatory filings on an ongoing basis.
Frequently asked.
Direct answers on structure, endowment, purposes, the trust comparison, tax and fees.
What is a Labuan foundation?
A Labuan foundation is a registered legal entity under the Labuan Foundations Act 2010. It has its own legal personality and, unlike a company, no shareholders. The founder endows property to it, and the foundation owns that property in its own name, governed by its charter, for any lawful purpose, charitable or private.
What is the basic structure of a Labuan foundation?
A founder endows the foundation and sets its charter. An officer runs the administration. A licensed Labuan trust company acts as secretary and files with Labuan FSA. A council may supervise management against the charter, and a supervisory person can safeguard the assets. Beneficiaries have no automatic right to the assets.
What are the advantages of a Labuan foundation?
A Labuan foundation owns its assets in its own name, so wealth passes on under the charter without probate. Under Section 61 of the Labuan Foundations Act 2010, foreign forced-heirship, matrimonial and succession claims are not enforceable against a validly established foundation. It can exist indefinitely, hold property worldwide, serve charitable or private purposes, and a foundation from another country can be redomiciled into Labuan.
Can a Labuan foundation be registered for both charitable and non-charitable purposes?
Generally a foundation registers for either charitable or private purposes. A private foundation may also carry out charitable activities that are incidental to its purpose.
Can a foundation be registered without any initial endowment?
Not entirely. There is no substantive minimum endowment, only a nominal initial asset of at least USD1. The charter names the initial property, which must be endowed to the foundation within twelve months of registration.
What is the difference between a Labuan foundation and a trust?
A Labuan foundation is a registered legal entity that owns its assets in its own name under a charter. A Labuan trust is a relationship in which a trustee holds assets for beneficiaries under a deed, with no separate entity. Foundations suit civil-law families; trusts suit common-law backgrounds.
How is a Labuan foundation's income taxed?
A Labuan foundation's non-trading investment income, such as dividends and interest, is not subject to tax under LBATA, provided the substance requirements are met. Trading activity is taxed at 3% of audited net profits. Distributions of profit after tax to beneficiaries are exempt from Malaysian income tax under the current exemption order, though beneficiaries may be taxable where they reside.
What are the relevant fees for registering a Labuan foundation?
A Labuan foundation pays a registration fee and an annual fee to Labuan FSA, alongside the ongoing cost of the licensed secretary and officer. We confirm the current amounts when we scope your structure.
Considering a Labuan foundation?
Tell us about the family and the assets. We confirm the structure, draft the charter, and register the foundation under our Labuan FSA licence.
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