FAQ
01
What is a Labuan limited partnership?
A limited partnership (LP) is a business entity comprising two or more partners who operate or manage a business together. The minimum number of partners for a Labuan LP is two partners, ie one general partner and one limited partner, and the maximum number of partners allowed is 50 partners.
Partners may be a corporation except for firms which are set up for professional practice, in which case it must consist of natural persons only and supplemented with professional indemnity insurance coverage issued by an insurer approved by Labuan FSA.
Partners may be a corporation except for firms which are set up for professional practice, in which case it must consist of natural persons only and supplemented with professional indemnity insurance coverage issued by an insurer approved by Labuan FSA.
02
What is a Labuan limited liability partnership?
A limited liability partnership (LLP) is a business entity comprising two or more partners who operate or manage a business together. An LLP is an alternative corporate business form that gives the benefits of limited liability of a company and the flexibility of a partnership. It is capable of entering into contracts and holding property in its own name.
The minimum number of partners for a Labuan LLP is two partners, ie one designated partner and one limited partner.
A Labuan LLP is a type of business entity that permits a partner to be shielded from liability for partnership obligations created by another partner's, or person's misconduct.
The minimum number of partners for a Labuan LLP is two partners, ie one designated partner and one limited partner.
A Labuan LLP is a type of business entity that permits a partner to be shielded from liability for partnership obligations created by another partner's, or person's misconduct.
03
What is the governing legislation for the business and operations of Labuan limited partnerships and Labuan limited liability partnerships?
Labuan LPs and Labuan LLPs are governed by the Labuan Limited Partnerships and Labuan Limited Liability Partnerships Act 2010.
04
How is the income for Labuan limited partnerships and Labuan limited liability partnerships taxed?
The rate of tax imposed is 3% of audited net profits.
05
What is the tax implication on distributions made by a Labuan limited partnership and Labuan limited liability partnership?
The distributions made by a Labuan LP and Labuan LLP to its partners are tax-exempt.
06
What are the fees payable by Labuan limited partnerships and limited liability partnerships in Labuan IBFC?
The fees payable are illustrated in the table below:
Type of Fees
Amount
Registration Fee
USD300
Annual Fee
USD300
All licensees are required to pay to Labuan FSA annual licence fees on or before 15 January of each year.
