Investment banking in Labuan is a type of banking that focuses on helping companies and governments raise capital by underwriting and issuing securities. It also involves providing advisory services to clients on mergers and acquisitions, divestitures, and other financial transactions.

The Labuan Investment Bank license is similar to the Labuan Bank license, with the difference that Labuan investment banks are not allowed to accept deposits.

Yes, a company holding the Labuan Investment Banking License can be 100% foreign-owned.

An applicant company is obligated to maintain an active office in the region for conducting business operations. In addition, the company should employ local staff and hold a minimum of two board meetings per year, with a majority of the members attending in person.

Yes, there must be at least 2 directors with one of them being a local resident. 

An applicant company must have a minimum paid-up capital of RM10 million (Malaysian Ringgit) or its equivalent in foreign currency. It is the minimum working fund for an investment bank. 

Labuan investment banks are not allowed to accept deposits. Additionally, Labuan Investment Banks are generally not allowed to transact with individuals who are residents of the local region. Moreover, a Labuan Investment Banking License only allows a company to conduct transactions in foreign currencies. It is not permitted for companies to deal with Malaysian ringgit, except for the purpose of settling administrative and statutory expenses. 

Brokerage and trading operations in Labuan are subjected to an annual tax of 3% on the net profit earned. Non-trading activities are not subject to corporate tax, and there is also no capital tax or withholding tax applied to interest and dividends. Also, there is no import duty, sales tax and service tax for all international dealings. Furthermore, Labuan offers an exemption on director fees from taxation. 

Some of the advantages of Labuan jurisdiction include low tax rates, a stable political environment, and a well-regulated financial system. Additionally, Labuan is an attractive location for businesses due to its strategic location in Southeast Asia and its proximity to major markets such as China and India.

Moreover, Labuan is on the Organisation for Economic Cooperation and Development (OECD) ‘white list’ which indicates that the country is committed to transparency and cooperation in tax matters. Countries that are on the OECD whitelist are generally considered to be reputable and trustworthy.