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Introduction to Labuan Foundation by Cheng & Co Trust Int'l Limited
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Labuan Foundation
Foundation is like a hybrid structure of a company and a trust
What is a foundation?
Can the objective of a Labuan Foundation be non-charitable?
The objectives of a Labuan Foundation can be charitable or non-charitable or both
Private Foundation
Corporate Foundation
Charitable Foundation
Types of foundation…
OR
OR
Charitable Foundation
You can establish a charitable foundation that typically offers financial support or other forms of assistance for a non-profit cause to the needy
Private Foundation
Private foundations are commonly used for estate planning purposes to benefit family members as well as to ensure that a succession plan is in place.
Private foundations does not solicit funds from the public and not necessarily engage in philantropy
Corporate Foundation
A corporate foundation is a private foundation sponsored primarily by a profit-making company.
It is a way for companies to exercise their corporate social responsibilities
Why set-up a Foundation?
Foundation is a separate legal entity and will not be affected if its beneficiaries becomes insolvent
Why set-up a Foundation?
Why set-up a Foundation?
Foundations can be established to hold and distribute assets and businesses on behalf of its beneficiaries
Why set-up a Foundation?
Foundation life is indefinite and managed by its council of officers.
It does not need to have any owners and no minimum paid-up requirements
Why set-up a Foundation?
Foundation is governed by its charter and articles of association and has the flexibility to change its structure anytime
Who can set-up a Labuan Foundation?
Any Malaysian or Non-Malaysian can set up a Labuan Foundation
Salient advantages of setting up a
Labuan Foundation
Create a Labuan Foundation as a protection to shield your assets…
Unenforceability of foreign judgement and claims…
Secrecy of information
There is no way for outsiders to access the information of a Labuan Foundation…
Unless, consent is granted by council member or officer
Tax exempted for distribution to beneficiaries…
Taxation only applicable if Labuan Foundation operates as a trading entity…
or perpetual…
Foundation life can be a fixed period
continuing from generation to generations…
Rights and Powers of Founders can be reserved…
You can set restrictions or rules in the Charter and Articles of Association
Example:
“Only the founder can wind-up the foundation”
“Only the founder can remove or appoint beneficiaries”
You can re-domicile your Foundation in other jurisdictions
to Labuan
Labuan
If you have already have a foundation somewhere else, you can re-domicile it into Labuan…
Foundation in other
Jurisdictions
Re-domicile
You can also re-domicile your Labuan Foundation to other
offshore jurisdictions
Panama
BahamasIsle of Man
If you prefer your foundation to be governed by other jurisdictions, you can migrate it out from Labuan…
Contact us for more information…
www.chengcotrust.com
Cheng & Co Trust International LimitedTelephone: +603-79848988, Fax: +603-79844402Website: www.chengcotrust.com e-mail: [email protected]
Labuan Office: Lot 2(a), Level 4, Wisma Lazenda, Jalan Kemajuan, PO Box 81840, 87000 Labuan FTKuala Lumpur Office: No 16-G, Jalan 2/114, Kuchai Business Centre, Off Jalan Klang Lama, 58200 Kuala Lumpur