1. WHAT IS A TRUST FOUNDATION IN LABUAN?
A Trust Foundation in Labuan is a legal entity designed for wealth management, charitable activities, and succession planning. Governed by the Labuan Foundations Act, it offers a blend of trust and company features, suitable for asset protection and estate planning under Labuan's offshore financial framework.
2. HOW IS A TRUST FOUNDATION IN LABUAN ESTABLISHED
To establish a Trust Foundation in Labuan, one may appoint a law firm to submit an application to the Labuan Financial Services Authority (LFSA), including a detailed charter and articles of the foundation. The application should outline the foundation's purpose, structure, and intended activities, adhering to the regulations of the Labuan Foundations Act.
3. WHAT ARE THE BENEFITS OF SETTING UP A TRUST FOUNDATION IN LABUAN?
Trust Foundations in Labuan offer several advantages such as tax efficiency, confidentiality, flexibility in estate planning, and asset protection. They also benefit from Labuan's stable political environment and its established legal and regulatory framework for offshore financial activities.
4. WHO CAN SET UP A TRUST FOUNDATION IN LABUAN?
Both individuals and corporations, regardless of nationality, can establish a Trust Foundation in Labuan. However, they must appoint a licensed Labuan trust company as the secretary of the foundation and comply with the LFSA's due diligence requirements.
5. WHAT ARE THE REPORTING AND COMPLIANCE REQUIREMENTS FOR A TRUST FOUNDATION IN LABUAN?
Trust Foundations in Labuan are required to maintain proper accounting records, submit annual reports, and comply with any other requirements set by the LFSA. They are also subject to annual government fees and must adhere to anti-money laundering regulations.
These FAQs provide a basic framework and it's important for interested parties to consult with legal advisors familiar with Labuan's regulatory environment for more detailed guidance especially on the process of setting up and a drafting of charter.