LABUAN CHARITABLE FOUNDATION Introduction Labuan Charitable Foundation is a foundation established by the founder for charitable purposes only and is non-profit oriented. Labuan Charitable Foundation’s function will be typically donating funds and support other non-profit organisations or provide the source of own funding for its own charitable purposes. The purpose is usually to promote public benefits or other purposes generally beneficial to the community. Copyright © 2024 BBS TRUST INT’L LIMITED 备博思信托国际有限公司. All rights reserved. What is foundation? A Labuan foundation, as provided by the Labuan Foundations Act 2010, is a corporate body with a separate legal entity, established by a founder. The structure for a Labuan charitable foundation (Charitable Solicit Public Donation) is depicted below: Beyond Business Solutions Business Builds Success A charitable purpose means and includes any of the following description of purposes: The prevention and relief of poverty The advancement of religion, profession, or education The advancement of health including the prevention and relief of sickness, disease or of human suffering Social and community advancement including the care, support and protection of the aged, people with a disability, children and young people The advancement of culture, arts and heritage The advancement of amateur sport, which promotes health by involving physical or mental exertion The promotion of human rights, conflict resolution and reconciliation The advancement of environmental protection and improvement The advancement of animal welfare The advancement of facilities for recreation or other leisure-time occupation in the interest of social welfare. 备 博 思 信 托 国 际 有 限 公 司
Copyright © 2024 BBS TRUST INT’L LIMITED 备博思信托国际有限公司. All rights reserved. LABUAN CHARITABLE FOUNDATION Internal Structure of Labuan Charitable Foundation FOUNDER • Either a natural person or corporate entity. • May be residents or non-residents of Malaysia. • May also be a council member and one of the beneficiaries. BENEFICIARIES • May include individuals, corporate entities or charities and are those who have vested interest in assets of the foundation. • May be residents or non-residents of Malaysia. • No rights to the foundation’s assets and are not owed any fiduciary duties. OFFICER • Compulsory appointment. • Either a natural person or corporate entity. • May be residents or non-residents of Malaysia. • Founder or Beneficiary may be appointed as Officer (but not be a council member at the same time). • Duties are inter alia to ensure proper administration of the foundation and to execute decisions of the Council. • Ensures the foundation is complying to relevant regulations. COUNCIL MEMBER • At least three (3) who are fit and proper persons (refer to Guidelines on Fit and Proper Person by Labuan Financial Service Authority (FSA)). • The founder may be a council member. However, the majority of the council members shall be independent of the founder. • May be residents or non-residents of Malaysia. • Cannot act as Officer at the same time. • Responsible to manage and oversee operations of the foundation. • Council members also supervises Officers of the foundation. • The council’s decision must be in line with the objectives and purposes for which the foundation was established. SECRETARY • A compulsory appointment and must be a licensed Labuan Trust Company. • To perform all secretarial functions including the filing and lodging of documents with Labuan FSA. SUPERVISORY PERSON • Compulsory appointment. • To monitor and provide feedback to the Council Members with respect to the charitable activities of which the purposes must be in line with the Charter. • To advise the Council Members on matters relating to the administration, management, and internal control of the foundation.
Characteristics of Labuan Foundation No Minimum Capital Required. Labuan charitable foundation must be registered and have a registered office (the address of the appointed secretary office/Labuan Trust Company). The Charter sets out the parameters of how the foundation is to be managed. Exists in perpetuity at the discretion of the Founder. Labuan charitable foundation is protected from foreign claims and cannot be forcefully liquidated to satisfy obligations from external events or parties. All accounting records and other records shall be maintained in Labuan (your registered office). LABUAN CHARITABLE FOUNDATION Copyright © 2024 BBS TRUST INT’L LIMITED 备博思信托国际有限公司. All rights reserved. HOW TO APPLY? BBS TRUST INT’L LIMITED can assist you for the application of Labuan Foundation. Contact us now for a non-obligational consultation! Email: [email protected] or Call: +603-4815 6718 Specific Requirements for Labuan Charitable Foundation If the endowment of property to the Labuan charitable foundation is from a corporation, Labuan charitable foundation is required to submit a copy of the certified resolution from the corporation approving the endowment of the property to the foundation. If the endowment of property is from an individual, Labuan charitable foundation is required to submit a copy of an undertaking to endow the property to the foundation. Submit annual audited accounts to Labuan FSA within six (6) months after the close of each financial year of the foundation. The Labuan charitable foundation is required to obtain prior approval of Labuan FSA before establishing a representative office outside of Labuan including Malaysia. The establishment of the representative office is confined to carry out facilitation of meetings and other administrative functions as approved by Labuan FSA. Income generating or fund-raising activities including investment related activities, as well as maintenance of records and books of accounts shall not be undertaken at the representative office.