Labuan is an island, 92 sq km in size, off the north-west coast of the former British Borneo and Brunei
Darussalam and is strategically located roughly equidistant from Bangkok, Hong Kong, Jakarta, Kuala Lumpur, Manila and Singapore. It is mostly flat with a good harbour and is accessible by air, with daily services from Kuala Lumpur and from most Asian capitals.
History* and Government
Labuan, from the Malay word "Iabohan" meaning anchorage was inhabited as early as pre-historic time. This was evident by the various ancient artifacts found on the three islets off Labuan namely Burong, Papan and Enoe. Modern history of Labuan began after the Brunei Sultanate ceded the island to the British in 1846. Labuan was then the British Empire's smallest and most easterly colony in the Far East. The British used Labuan as a trading centre and naval base to fight pirates in the Brunei Bay. The discovery of coal on the island made Labuan a strategic re-fuelling station for British steamships of the day.
*Historical extract from http://www.labuanweb.com/history.html
Legal System
The legislation governing the Labuan offshore jurisdiction is independent of the domestic laws of Malaysia and was formulated by modifying the legislation from other offshore centres. The Malaysian Government, committed to making Labuan a success, had ensured a legislative framework which is not only business-friendly but also prudent to safeguard Labuan's international image as a clean and reputable offshore financial centre.
International Financial Services Centre
Labuan is a Federal Territory of Malaysia and is administered by the Federal Government of Malaysia. The Government laid down the statutory foundations for the creation of an international finance centre in Labuan in 1990 and has passed a number of Acts relating to offshore matters including incentives which apply only to Labuan. Specific legislation has been enacted relating to trusts, companies, banking, insurance, limited partnerships, control of money-laundering and securities. The Labuan Offshore Financial Services Authority ("LOFSA") was created in 1996. The Labuan International Financial Exchange (LFX) was established in 2000. Entities operating through Labuan are, with some exceptions, able to access Malaysia's double tax treaties. The Malaysian Government intends that it should become a centre for Islamic banking and finance.
Portcullis TrustNet (Labuan) Limited is able to assist with the formation of Labuan structures and entities.
