Get a Forex Brokerage License in Labuan 2023

Facts & Figures

Forex Companies that are looking for cost efficiency and maximum speed will find their dream come true in Labuan. This Exclusive Economic Zone of Malaysia offers some of the lowest entry and running costs in the global Forex market.

The process

The costs

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Book a free consultation with one of our experienced specialists to get your license application start or learn more about the Mauritius Forex License.

About the Labuan Forex License

Table of Contents

Labuan, an island and Exclusive Economic Zone (EEZ) of Malaysia, is increasingly becoming a popular choice for obtaining a Forex brokerage license due to its well-structured regulatory framework and the costs associated with its Forex license. In this comprehensive guide, we’ll explore the process of obtaining a Forex brokerage license in Labuan, covering the various steps, requirements, and pitfalls, with expert insights from our specialists at

The Economy of Labuan

Labuan’s economy, while small, is robust and diverse. It is a leading offshore financial hub with a strong presence in finance and insurance sectors. As of 2020, Labuan’s GDP was estimated to be around $3.7 billion. Apart from its financial sector, Labuan’s economy is supported by oil and gas industries, shipping, and international trading. It’s important to note, however, that Labuan’s local market is relatively small, which could be a limitation for businesses targeting larger or more diverse markets – especially when it comes to labour force.

How Labuan Regulates Financial Markets

Financial markets in Labuan, including the Forex industry, are regulated by the Labuan Financial Services Authority (LFSA). This authority sets and enforces standards for the conduct of financial services providers and monitors compliance with these standards. However, it’s worth noting that while the regulatory framework is robust, it can be complex, and companies may need local expertise or advice to navigate it effectively. 

Registering a Company in Labuan

The process of registering a company in Labuan involves several key steps, which are similar to those in many other jurisdictions. 

In general terms, the company registration process will require you to choose a company name, draft up Articles of Association, and go through the legal procedures using a local attorney and notary.

However, the language and cultural barriers might pose challenges for businesses not familiar with Malaysia’s legal and business environment. At, we are working with the best local legal teams on the island that can ensure a smooth and fast process for new Forex companies.

Taxation in Labuan

Labuan has a favorable tax regime with low rates and numerous incentives for businesses. The corporate tax rate is a flat 3% for trading companies, making it one of the lowest in the region. However, businesses should be aware that while the tax benefits are significant, Labuan’s tax-friendly status sometimes attracts increased scrutiny from international regulatory bodies, which could affect their operations.

That’s why we only recommend the Labuan license to certain Forex brokerages. If you are unsure whether the Labuan Forex License is a good forex license for your business, don’t hesitate to reach out. Our specialist team will be more than happy to help you navigate through the complex jungle of Forex licenses.

Benefits of the Labuan Forex License

Labuan is among the most popular off-shore Forex licenses at the moment. And it’s not hard to see why. Among its most noteworthy benefits are:

1. Cost-Effective Licensing Process

Compared to other jurisdictions, the licensing process in Labuan is relatively cost-effective. Specifically, applying for a new Forex company can cost anywhere from XX to XX, while the acquisition of an existing Labuan forex company typically costs between X and X. This makes the Labuan Forex license about X to XX percent cheaper than other off-shore options, and up to X to XX percent more cost efficient than the average on-shore license.

Additionally, running costs of a Labuan-based Forex brokerage is very affordable as well, with monthly costs starting from XX. In contrast, the average off-shore license will set you back around $XX per month, while on-shore licenses will usually require 5-figure amounts every month.

2. Fastest Forex license on the market

Thanks to its smart regulatory framework, Labuan is also one of the fastest jurisdictions when it comes to approving new brokerages. In concrete terms, applying for a new Forex license in Labuan will only take around X to X months, while a company aquisition can be as fast as XX months.

3. Low Taxes

Labuan offers a competitive tax regime with a flat corporate tax rate of 3% – which is one of the lowest of all reputable Forex jurisdictions. This rate is only beaten by Seychelles, which employ a flat 0% tax rate. However, Labuan is still significantly cheaper, both on the upfront and monthly costs, than Seychelles.

4. Access to Asian Markets

Labuan’s strategic location provides excellent access to Asian markets. The island sits right next to Borneo, a large island in Asia Pacific that houses territorry of Malaysia, Brunei, and Indonesia. Moreover, Labuan is also in the vicinity of other regional powerhouses such as Singapore, the Philippines, and Vietnam.

Drawbacks of the Labuan Forex License

With all the marvels Labuan has to offer to Forex companies, it’s still essential to take a closer look at its drawbacks. 

1. Limited recognition

Labuan may not be as widely recognized or respected as some other jurisdictions. It is easily identifiable as an off-shore destinations, and unlike Mauritius and Seychelles, Labuan is not known as the most reputable off-shore jurisdiction. While this may not be an important metric to many Forex companies, it can be a dealbreaker for some.

2. Tiny local market

Labuan is small and sits in an area that is not particularly known for its wealth, education, and talent. As such, companies looking to obtain a Forex license in Labuan will most likely depend on external staff to run their business. This of course applies to all off-shore destinations, yet when it comes to talent and economic development, Labuan is proably on the lower end of the spectrum.

Comparing Labuan to Other Jurisdictions

Despite its drawbacks, Labuan is still considered one of the top global licenses for Forex brokerages due to its advantages such as low costs, access to good bank accounts and payment processors, and a straightforward process when working with a professional consulting agency. While there are other jurisdictions to consider, Labuan provides a competitive edge for businesses, especially for those with very limited budgets or who are looking to tap into the Asian markets. 

Overall, it’s important to carefully evaluate all the benefits and potential challenges of obtaining a Labuan Forex license to make an informed decision that best suits your business model and growth plans. As with any jurisdiction, the success of your Forex brokerage will largely depend on your ability to navigate the local regulatory environment, understand the market dynamics, and provide a high-quality service that meets the needs and expectations of your clients. With the right approach and resources, Labuan can provide a supportive and advantageous environment for your Forex brokerage.

Key Benefits of a Labuan Forex Broker License

  • Free Zone
  • Net effective tax rate of 3%
  • New License to the Market
  • ASEAN based banking, should fit clients

Ready to Move Forward?

Book a free consultation with one of our experienced specialists to get your license application start or learn more about the Mauritius Forex License.