labuan international commodity trading company

Labuan Financial Services and Securities Act 2010, Guidelines on the Establishment of Labuan International Commodity Trading Company under the Global Incentives for Trading Programme, Directive on Labuan International Commodity Trading Company Trading in Non-Petroleum and Non-Petroleum-Related Commodities. What are the permitted activities under the GIFT programme? The LITC is allowed to establish its operational office(s) and operate anywhere in Malaysia but it must have its physical office in Labuan to house its 2 FTE to manage the daily operations of the activities out of its Labuan office. 2.0 Applicability This programme aims to position Malaysia as a regional trading and storage hub for oil and gas. Labuan bank, Labuan investment bank, Labuan Islamic bank or Labuan Islamic investment bank: 3 (no change) 200,000 (previously RM180,000) 9. List of Labuan International Commodity Trading Companies Areas of Business; Financial Services; Commodity Trading; DOWNLOAD THIS FILE. Removal of Labuan International Commodity Trading Companies ("LITC") from the original list in the Labuan Regulations. ; and (2) annual local spending of RM3 million (in Malaysia) and RM100,000 (in Labuan)?. Labuan International Business and Financial Centre (Labuan IBFC) presents a comprehensive midshore solution striking the ideal balance between client confidentiality and compliance with international … Labuan bank, Labuan investment bank, Labuan Islamic bank or Labuan Islamic investment bank: 3 (no change) 200,000 (previously RM180,000) 9. RM180,000 (US$45,000) Labuan trust company. RM120,000 (US$30,000) Labuan leasing company or Labuan Islamic leasing company. 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. Labuan IBFC is an internationally-recognised for its standards and best practices in financial services for both conventional as well as Islamic. 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. 3. Insurance Banking Labuan International Commodity Trading Company (LITC) The Global Incentives for Trading (GIFT) event is targeted to position Malaysia as a local trading and storage hub for gas and oil. The Global Incentives for Trading (GIFT) programme, launched in collaboration with the Malaysia Petroleum Resources Corporation (MPRC), is aimed at positioning Malaysia as a regional trading and storage hub for oil and gas including other key commodities such as minerals, agriculture products, refined raw materials, chemicals, base minerals and coal. 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. 8. Commodity Trading; Credit Token Business; Company Management Business; Malaysia International Ship Registry; Capital Markets; Wealth Management; Labuan Structures. Is there any transition given before it can be re-licenced? 3. Labuan international commodity trading companies use Malaysia as their international trading base to undertake international commodity trading business in Labuan IBFC. 1. The Global Incentives for Trading (GIFT) programme is aimed at positioning Malaysia as a regional trading and storage hub for oil and gas. Ensure that the Principal Officer, Director(s) and Officer(s) responsible for the management of the company are fit and proper persons pursuant to Section 4 of LFSSA and the Guidelines on Fit and Proper Person Requirements issued by Labuan FSA. Companies incorporated under this Act and which meet certain conditions, including substance requirements would be taxed at preferential rates. Can the LITC operate out of Labuan but in Malaysia? 3. Notwithstanding this, the LITCs may write to Labuan FSA if they foresee that they are not able to meet any of the operational requirements. assessment against a full year’s operation as regards the annual quantitative requirements. Company Management Business; Wealth Management; Digital Financial Services; Capital Markets; Exchange; Labuan Structures. Labuan FSA may consider the application based on the merit of each case. Labuan International Commodity Trading Company. What is the purpose of the Global Incentives for Trading (GIFT) programme? A copy of its audited financial statements within six (6) months after the close of each financial year. Residents and non-residents of Malaysia are allowed to establish Labuan companies. 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. may participate in business activities and enjoy attractive tax benefits provided under the Labuan Business Activity Tax Act 1990 (LBATA). 3. Employ at least three professional traders that fulfill the following requirements. 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, based minerals and coal. Difference between Labuan International Company and Malaysian Sdn Bhd. The LITC is required to submit to Labuan FSA the following: The completed Annual Update Submission Form latest by 15 January of each year (as per Appendix I); and. 11. 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. The LITCs are still allowed to operate in any parts of Malaysia. On 17 April 2020, the Labuan Financial Services Authority (“Labuan FSA”) issued a revised Guidelines on the establishment of Labuan International Commodity Trading Company (“LITC”) Revised Substantial Activity Requirements for Labuan International Commodity Trading Company (“LITC”) under the Global Incentives for Tradin. Last Updated: 14 January 2019. RM3,000,000 (US$750,000) Labuan bank, Labuan investment bank, Labuan Islamic bank and Labuan Islamic investment Bank. Labuan International Commodity Trading Company (LITC) - Surrendered & Revoked List; Credit Token Business; Company … RM100,000 (US$25,000) Labuan fund manager. The LITC’s business is the trading of physical and related derivative instruments of petroleum and petroleum-related products including liquefied natural gas (LNG). For the Non-Petroleum LITC that have surrendered its licence arising from previous Guidelines issued on 8 March 2018, will it be required to be re-licensed and to comply with the revised Guidelines issued on 17 April 2020 immediately? Labuan IBFC Inc; Labuan FSA; The Industry; Areas of Business. 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 For regulatory purpose, the policy expectation on the compliance to the revised Guidelines would be made on practical basis i.e. Effective 17 April 2020, Labuan company that wants to trade in Non-Petroleum Commodities are required to be licensed under the GIFT programme. A rebranding exercise is currently on going to reflect the clear direction of the group as the name ‘LONGVIEW’ suggests. For the purpose of complying with tax substance requirement where two full time employees (FTE) are required, these 2 FTE may not necessarily be the professional traders but they are required to be based in Labuan: making decisions that affect the whole, or a substantial part of the LITC business; implementing and enforcing policies and strategies approved by the LITC’s Board of Directors including Head of Department or any equivalent designated person; or. 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) use Malaysia as an international trading base for specified types of commodities to be conducted on in, from or through Labuan. The GIFT programme is a framework of incentives to attract traders of specified commodities to use Malaysia as their international or regional trading base. Labuan International Commodity Trading Company (LITC) - Breakdown by Type of Comodities from 2015 to 2018 The said employees are expected to manage the daily operations of the activities out of its Labuan office. 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 RM180,000 (US$45,000) Labuan trust company. Being new to Malaysia business environment and culture, it is a norm for foreigners get confused trying to figure out the right company entity to set-up to meet their business objectives. 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. A Labuan International Commodity Trading Company and Malaysian residents; Labuan entities that have opted to pay tax under the ITA and Malaysian residents; and; Labuan entities that are paying taxes under the ITA and Labuan entities that are paying taxes under the LBATA. 2. 10. Is the role of a Principal Officer (PO) can be considered as Professional Trader? 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. Labuan developments 1. 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. Become a world renowned energy trading powerhouse creating economic value to our stakeholders. The GIFT programme is a framework of incentives to attract traders of specified commodities to use Malaysia as their international or regional trading base. 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” under the Labuan Financial Services and Securities Act 2010, together with its licence number, The business is conducted with proper corporate governance and has a risk management framework in place; and. For the purpose of complying with the tax substantial activity requirements to enjoy the benefits accorded under the GIFT programme, Labuan FSA wishes to further clarify the following: Discover the wide range of business and financial services available in Labuan IBFC. Is this understanding correct? 4. (A)375/2018 dated 31 December 2018 is not applicable to transactions between LITC and Malaysian residents. The Labuan International Commodity Trading Company (‘‘LITC’’) is promoted under the Global Incentives for Trading (‘‘GIFT’’) programme. Is expected to comply with other requirements of the Labuan Companies Act 1990, the Labuan Financial Services and Securities Act 2010, the Labuan Business Activity Tax Act 1990 and other relevant laws, whichever is applicable. 3. 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 Companies; Protected Cell Companies; Partnerships; Labuan Service Providers. The revised Guidelines have reinstated the non-petroleum commodities to be included back into the GIFT Programme. 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. Banking; Insurance; Leasing; Factoring; Money Broking; Commodity Trading. Continued growth across the board in 2018, entrenching Labuan IBFC’s role as Asia’s preferred midshore business and financial centre. Labuan International Commodity Trading Company. 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. Uniquely, although set up as a Labuan company, LITCs are allowed to operate anywhere in Malaysia, and as such, are not limited to operating out of Labuan. Banking; Insurance; Leasing; Money Broking; Commodity Trading; Credit Token Companies; Company Management Business; Wealth Management; Digital Financial Services; Capital Markets; Exchange; ... Search for Labuan Companies. 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. RM3,000,000 (US$750,000) Labuan bank, Labuan investment bank, Labuan Islamic bank and Labuan Islamic investment Bank. 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. ENSA Energia AG is licensed as a Labuan International Commodity Trading Company (LITC) by the Labuan FSA (LITC/20/0068) (under the Global Incentives for Trading (GIFT) Programme. Since 2003, Healy Consultants Group PLC has been assisting our Clients doing business in Labuan. Financial Services. What are the post licensing requirements for an LITC? 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. RM120,000 (US$30,000) Labuan leasing company or Labuan Islamic leasing company. Revision of substantial activity requirements for Labuan International Commodity Trading Company under the Global Incentives for Trading Programme The pronouncement is available on Labuan IBFC’s website www.labuanibfc.com (Guidelines > General). Revised Substantial Activity Requirements for Labuan International Commodity Trading Company (“LITC”) under the Global Incentives for Tradin. Labuan leasing company or Labuan Islamic leasing company which has– A Labuan company is a company incorporated or registered under the Labuan Companies Act 1990 (LCA 1990). Thereafter, the Income Tax (Deductions Not Allowed for Payment Made to Labuan Company by Resident) Rules 2018 [P.U. No. This programme aims to position Malaysia as a regional trading and storage hub for oil and gas. Financial Services. 12. 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 … 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. For the purpose of complying with tax substance requirement, out of this amount, at least RM100,000 must be spent/incurred for its operations in Labuan; and. For instance, trading companies do not need to pay the 3% tax rate on profits, but a fixed tax of RMB 20,000 or approximately USD … Labuan Investment Committee Pronouncement 3-2020 2. 16. 6. ; may carry out any business that is permitted in Malaysia in, from or through Labuan. Island Offshore Trading Pte Ltd (rebranding as Longview Resources (SG) Pte Ltd) A Singapore registered International Commodities Trading Company Ark Trading Ltd … 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 Labuan Financial Services Authority—the statutory body responsible for the development and administration of the Labuan International Business and Financial Centre (a special economic zone)—issued a circular (dated 29 April 2020) setting out revisions to the “substantial activity requirements” for eligibility as a Labuan international commodity trading company. There are two types of bank accounts you can open for your Labuan International Company in Malaysia. 2. 15. 14. 1/2019 ). Our vision. How to apply and what are the conditions for licence under the GIFT programme? 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. internal controls and processes of the LITC. Transactions between Labuan International Commodity Trading Company (LITC) and Malaysian residents; Transactions between Labuan entities that have opted to … 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. RM180,000 (US$45,000) Labuan trust company. 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. These professional traders shall be involved in any one of the following areas: The LITC must have sufficient capital or working funds that commensurate with its operations and activities. 6.7 of the revised Guidelines, can the LITC undertake other business apart from the trading of permissible commodities under the said revised Guidelines? 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 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. 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