1/2019 ). This article aims to pull together various laws and successive development in the relevant laws relating to entities in Labuan, an island in the South China Sea established in 1990 as an international offshore financial centre (IOFC) and rebranded in recent years as an international business financial centre (IBFC) Labuan IBFC, as hosts to over 400 international financial institutions comprising 61 banks, 169 insurance and insurance-related companies, 176 leasing companies amongst others, is a natural and ideal location as it provides the Oil and Gas trading companies with a comprehensive range of financial products and services, both under conventional and Shariah-based principles. Such traders are licensed as Labuan International Commodity Trading Companies (LITCs) which deal with eligible commodities which include petroleum and petroleum related products including liquefied natural gas; as well as trading of other physical products such as minerals, agriculture products, refined raw materials, chemicals, base materials and coal. The GIFT programme is a framework of incentives to attract traders of specified commodities to use Malaysia as their international or regional trading base. Our services include i) Malaysia Labuan international company registration ii) government licence registration iii) business bank account opening iv) employee recruitment … 11. 5. LITC must comply with the following conditions after the granting of its licence and commencement of its business: Client Charter and Related Guidelines and Circulars for Labuan Trust Companies, Labuan Foundations and Labuan Islamic Foundations. Labuan IBFC Inc; Labuan FSA; The Industry; Areas of Business. internal controls and processes of the LITC. The Labuan International Commodity Trading Company (''LITC'') is promoted under the Global Incentives for Trading (''GIFT'') programme. Only companies set up as Labuan International Trading Companies are accorded privileges under GIFT. The LITC must indicate clearly on its letterhead, stationery and other documents including signage containing its name that it is licensed as a “Labuan International Commodity Trading Company licensed by Labuan FSA”, together with its licence number. internal controls and processes of the LITC. Labuan International Commodity Trading Company (LITC) - Breakdown by Type of Comodities Created at: October 19, 2018 Updated at: October 18, 2019 Dataset Publisher: Labuan FSA XLSX Notwithstanding this, the LITCs may write to Labuan FSA if they foresee that they are not able to meet any of the operational requirements. International Commodity Trading Company enjoys a concessionary tax rate of 3%. RM3,000,000 (US$750,000) Labuan bank, Labuan investment bank, Labuan Islamic bank and Labuan Islamic investment Bank. A Labuan international commodity trading business is the trading of physical and related derivatives of petroleum and petroleum-related products including liquefied natural gas (LNG), minerals, agriculture products, refined raw materials, chemicals, base minerals and coal. Under the programme, a set of incentives are offered through the establishment of the Labuan international commodity trading company (LITC), including incentives for traders and trading houses to use Malaysia as their international trading base. 3. the 2 full time employees (to be based at its physical office in Labuan) need not be the professional      traders. Labuan bank, Labuan investment bank, Labuan Islamic bank or Labuan Islamic investment bank: 3 (no change) 200,000 (previously RM180,000) 9. The Labuan Financial Services Authority (LFSA) has issued guidelines applicable to all Labuan international trading companies (LITCs) licensed to conduct international commodity trading business in the Labuan International Business and Financial Center (LIBFC) under the Global Incentives For Trading … The Labuan international commodity trading sector recorded 12 new Labuan International Commodity Trading Companies (LITCs) in the year under review. RM180,000 (US$45,000) Labuan trust company. Commodity Trading; Credit Token Business; Company Management Business; Malaysia International Ship Registry; Capital Markets; Wealth Management; Labuan Structures. Labuan IBFC is an internationally-recognised for its standards and best practices in financial services for both conventional as well as Islamic. Obtain prior approval from Labuan FSA on any new changes being effected on the following: The LITC is expected to comply with all the requirements of this Guidelines as well as the relevant requirements under LCA, LFSSA, other Labuan legislations and the laws of the jurisdictions in which the LITC operates from, whichever applicable. Nevertheless, with the tightening of the Labuan substance requirement rules since 2019, it remains to be seen how the GIFT programme will be affected. commodity trading operations are clear, and many of the world’s biggest oil and gas and mining majors have set up international trading structures to win competitive advantage. A copy of its audited financial statements within six (6) months after the close of each financial year. Banking; Insurance; Leasing; Factoring; Money Broking; Commodity Trading. LABUAN INTERNATIONAL COMMODITY TRADING COMPANY UNDER THE GLOBAL INCENTIVES FOR TRADING PROGRAMME 1.0 Preamble 1.1 The guidelines are issued pursuant to section 4A of the Labuan Financial Services Authority Act 1996 and are applicable to qualified applicants who wish to undertake international commodity trading business in Labuan In this regard, the Labuan money broker is expected to impose a maximum leverage limit of 100:1 on its clients’ trading transaction that would translate to a minimum of 1% margin deposit to enable the opening of a trade position. Labuan International Commodity Trading Company (LITC) - Breakdown by Type of Comodities from 2015 to 2018 Hence, proper segregation of accounts is required. LITCs that are unable to achieve the operational requirements under the revised Guidelines would be treated as non-compliant to the said Guidelines and be dealt with accordingly under the Labuan Financial Services and Securities Act 2010. GUIDELINES ON THE ES TABLISHMENT OF LABUAN INTERNATIONAL COMMODITY TRADING COMPANY UNDER THE GLOBAL INCENTIVES FOR TRADING (GIFT) PROGRAMME PAGE 2/7 4.0 Effective Date 4.1 The Guidelines shall come into effect on 26 June 2013 and would remain effective and applicable unless amended or revoked otherwise. (The business activity of Labuan International Commodity Trading Company has been deleted) 7. Labuan International Commodity Trading Company. RM3,000,000 (US$750,000) Labuan bank, Labuan investment bank, Labuan Islamic bank and Labuan Islamic investment Bank. The process of incorporating a Labuan company is simple and foreign investors can have full foreign ownership over the legal entity they register here. Labuan International Commodity Trading Company (LITC) is curated to cater to the requirements of organisations and financial institutions yearning to access international trading markets in commodities like petroleum and petroleum-related products (including liquefied natural gas (LNG)), agriculture products, refined raw materials, chemicals, base minerals, carbon credits and any other commodities as maybe approved by Labuan … 16. The accumulated income generated by the LITCs increased by 39.2% to USD23.8 billion as compared to USD17.1 billion of the preceding year; with a majority of the income stream derived from trading in petroleum and petroleum-related products. With the issuance of Circular on revised substantial activity requirements for LITC dated 29 April 2020, does this mean that the LITC needs to comply the following: (1) 3 professional traders (to be based at its operational office in any parts of Malaysia) AND 2 full time employees (to be based at its physical office in Labuan)? Can the LITC operate out of Labuan but in Malaysia? Updated Guidelines on the establishment of Labuan International Commodity Trading Company under the Global Incentives for Trading Programme. Revised Substantial Activity Requirements for Labuan International Commodity Trading Company (“LITC”) under the Global Incentives for Tradin. In raising fund for a project with a private fund, the subscribers will typically be looking at a reasonable return on their investment at the very least. Labuan International Business and Financial Centre (Labuan IBFC) presents a comprehensive midshore solution striking the ideal balance between client confidentiality and compliance with international … Since 2003, Healy Consultants Group PLC has been assisting our Clients doing business in Labuan. RM120,000 (US$30,000) Labuan leasing company or Labuan Islamic leasing company. A Labuan international commodity trading business is the trading of physical and related derivatives of petroleum and petroleum-related products including liquefied natural gas (LNG), minerals, agriculture products, refined raw materials, chemicals, base minerals and coal. GUIDELINES ON THE ESTABLISHMENT OF LABUAN INTERNATIONAL COMMODITY TRADING COMPANY UNDER THE GLOBAL INCENTIVES FOR TRADING PROGRAMME 1.0 Introduction 1.1 The Global Incentives for Trading (GIFT) programme was established to encourage companies to use Malaysia as an international trading base for 6.3 The LITC must indicate clearly on its letterhead, stationery and other documents including signage containing its name that it is licensed as a “Labuan International Commodity Trading Company licensed by Labuan FSA”, together with its licence number. 1.1 The Guidelines on the Establishment of Labuan International Commodity Trading Company (LITC) under the Global Incentives for Trading (GIFT) Programme set out the parameters relating to the establishment and operation of the LITC under the GIFT programme. Longview Resources Group (“Longview”) is a Hong Kong based and headquartered Group that is the product of a recent amalgamation of four formerly separate International Commodities Trading Companies. Post 17 April 2020, new Labuan companies that intend to trade in Non-Petroleum commodities are required to be part of the GIFT programme.Apart from the tax incentives as accorded under the Labuan Business Activity Tax Act 1990 subject to fulfilment of the tax substantial activity requirements, the non-deductibility rules under P.U. Financial Services. To provide address and staffing plan at its operational office. The Labuan Financial Services Authority (LFSA) has issued guidelines applicable to all Labuan international trading companies (LITCs) licensed to conduct international commodity trading business in the Labuan International Business and Financial Center (LIBFC) under the Global Incentives For Trading … Residents and non-residents of Malaysia are allowed to establish Labuan companies. The top commodity trading companies come in different shapes and sizes, but typically are the juggernauts that cast an extensive influence on the commodity markets that they trade. 3. Labuan is a duty-free zone, hence there are no indirect taxes. RM120,000 (US$30,000) Labuan leasing company or Labuan Islamic leasing company. (A)375/2018 dated 31 December 2018 is not applicable to transactions between LITC and Malaysian residents. Transactions between Labuan International Commodity Trading Company (LITC) and Malaysian residents; Transactions between Labuan entities that have opted to … Our vision. A rebranding exercise is currently on going to reflect the clear direction of the group as the name ‘LONGVIEW’ suggests. The tax regime for international companies in Labuan is appealing to foreign investors who decide for such type of company in Malaysia. Labuan Investment Committee Pronouncement 3-2020 2. The removal of LITC from the original list suggests that a revision of substantial requirements for LITC proposed earlier would be covered in a separate Order / Regulations although these have yet to be issued. may participate in business activities and enjoy attractive tax benefits provided under the Labuan Business Activity Tax Act 1990 (LBATA). trading base, Labuan FSA launched the Labuan International Commodity Trading Company (LITC) which comes with a designed pack of incentives under the Global Incentives for Trading (GIFT) program. 1. ; and (2) annual local spending of RM3 million (in Malaysia) and RM100,000 (in Labuan)?. Setting up a trading company in Labuan jurisdiction is an ideal choice as it offers a wide range of business activities permissible under the regulation of Labuan Financial Services Authority. The Labuan International Commodity Trading Company (‘‘LITC’’) is promoted under the Global Incentives for Trading (‘‘GIFT’’) programme. What are the fees payable by LITCs in Labuan LIBFC? 4. Become a world renowned energy trading powerhouse creating economic value to our stakeholders. Para 6.7 is to cater for LITCs that are undertaking businesses that are ancillary to the trading of permissible commodities such as leasing, trading, consultancy etc. Achieve annual minimum turnover of USD50 million; Incur minimum annual business spending of RM3 million payable to Malaysian residents in Malaysian Ringgit. A) 375] were gazetted on 31 December 2018 to set out the relevant rules relating to Section 39(1)(r), with effect from 1 January 2019 (see Special Tax Alert No. A Labuan company: may be a company limited by shares or by guarantee or an unlimited company. The LITC must ensure that its business is conducted with both corporate governance and risk management frameworks in place. As per Para. 15. What is the Labuan international commodity trading business? RM100,000 (US$25,000) Labuan fund manager. Labuan leasing company or Labuan Islamic leasing company which has– Labuan FSA may consider the application based on the merit of each case. Labuan Companies; Protected Cell Companies; Partnerships; Labuan Service Providers. 3. For those who are qualified, Labuan IBFC offers various financial products and services to meet your objectives, such as Labuan Leasing, Labuan International Commodity Trading Company (LITC). For regulatory purpose and to enable the company to enjoy the tax incentives under GIFT Programme, the non-petroleum LITCs that have surrendered their licences should submit its application for licence as soon as practicable. Labuan commodity trading Labuan International Commodity Trading (LITC) is for traders of physical products and related derivatives, that primarily uses Malaysia as their base Eg, Petroleum related, liquefied natural gas, LNG, minerals, agriculture, refined raw materials, chemicals, base minerals, coal The GIFT programme is a framework of incentives to attract traders of specified commodities to use Malaysia as their international or regional trading base. This programme aims to position Malaysia as a regional trading and storage hub for oil and gas. What will happen should LITCs are unable to meet the operational requirements under Paragraph 6 of the revised Guidelines? 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