Labuan foundation, like a company, is a corporate body with a separate legal entity, established to hold assets in its own names with the objective of managing the assets for the benefit of its beneficiaries, or particular purposes, or both. It is typically used for private wealth management and charitable purposes.
The Labuan foundation is an orphan structure where they do not have shareholders. Labuan foundations are managed by one or more officers and operates in accordance with the constituent documents comprising of charter and articles.
In the case of an Islamic foundation, the foundation’s aims and operations shall be in compliance with Shariah principles.