Labuan Private Fund

a) Introduction
Private funds are mutual funds whose securities are, not offered to the public, are owned, or held by,
• MAXIMUM 50 INVESTORS
First time investment by each investor with NO LESS than RM250,000 or its equivalent foreign currency, or
• ANY NUMBER OF INVESTORS
First time investment by each of the investors with NO LESS than RM500,000 or its equivalent foreign currency.
It can be structured by using a Labuan company, a protected cell company or a foundation. It allows a collective pool of monies for the purpose of investing into the likes of equities and shares, Forex and money market, commodities, real estates, business and development projects as well as land and business acquisitions.

b) TAXATION: Substance Requirement under LBATA
As the business activity of a Fund is generally involved in either Pure Equity Holding or Non-Pure Equity Holding are not subject to tax with fulfilling Substance Requirements as follows,

• Pure Equity Holding
  To comply with management and control requirement in Labuan, the entity is to hold at least a minimum of one board meeting in Labuan for each calendar year and incur a minimum annual operating expenditure of RM 20,000 per annum in Labuan.
• Non-Pure Equity Holding
  To comply with minimum of ONE full time employee in Labuan and a minimum annual operating expenditure of RM 20,000 per annum in Labuan.

Failing which, the Labuan incorporated entity shall be charged a tax rate of 24% for that year of assessment.