Fiduciary services can be a valuable addition to company formation in Labuan, meaning that a local lawyer can act on your behalf, through a power of attorney, to open the company. Your presence is not needed in Labuan for registering the company with the local Trade Register. Fiduciary services also include assistance with trust and foundation establishment, wealth management, tax planning, compliance with Labuan’s regulatory framework, and asset protection strategies.
Types of fiduciary services in Labuan
Fiduciary services in Labuan encompass a variety of financial and legal solutions to meet the specific needs of individuals and businesses. Some of the types of fiduciary services available in Labuan include:
- Trust services – administering and opening trusts, ensuring assets are managed in accordance with the trust’s objective;
- Foundation services – creating and managing Labuan foundations for asset protection and wealth management purposes;
- Wealth management – including investment portfolio management, and financial planning;
- Tax planning and financial services – optimizing tax efficiency while remaining compliant with tax laws, opening a bank account;
- Specialized services, depending on individual needs.
We can provide more details about the fiduciary services for a Labuan offshore company if you are interested. Besides these services, we also provide support in setting up a company in Labuan.
Fiduciaries must act in the best interests of their clients, beneficiaries or shareholders. These duties are characterized by a high standard of loyalty, care, and diligence, and they are designed to ensure that fiduciary services in Labuan prioritize the interests of their clients. The specific fiduciary duties can vary depending on the context and the relationship between the fiduciary and the beneficiary, but they generally include the following key duties:
- duty of loyalty – personal interests should not conflict with fiduciary duties;
- duty of care – ensuring the well-being of their clients;
- duty of good faith – provide full and accurate information to avoid any deceptive or fraudulent conduct;
- duty of compliance – respecting all applicable laws and regulations.
In the context of company incorporation in Labuan, a fiduciary relationship between a lawyer and a client means that the lawyer is obligated to act in the best interests of the client. This includes ensuring compliance with Labuan’s legal and regulatory requirements for the incorporation process.
The Labuan Trust Act 1996 (LTA) provides the legal framework for creating trusts. Fiduciary services in Labuan help assist individuals or settlors in the establishment and management of these trusts.
The LTA allows for the creation of different types of trusts:
- purpose trusts,
- charitable trusts,
- spendthrift or protective trusts,
- Labuan special trusts.
Fiduciary services include ensuring that the trust is structured correctly, assets are properly managed, and the trust’s objectives are met. In the case of charitable trusts, fiduciary services in Labuan may involve the proper distribution of funds to charitable organizations and the fulfillment of the trust’s charitable purposes.
Our team can provide more details about Labuan offshore financial services.
Why choose fiduciary services in Labuan
Choosing fiduciary services in Labuan can be a strategic decision for individuals and businesses looking to benefit from the advantages offered by the Labuan offshore financial center. Additionally, these statistics prove Labuan’s financial and economic growth in recent years and the need to engage in fiduciary services:
- In 2021, there were 2,924 trading companies in Labuan, of which 889 were financial institutions;
- In the same year, 1,869 were non-trading companies established for the purpose of holding investments;
- There were 67 active trust companies in Labuan in 2021;
- There was a growth in the number of Labuan trust companies, with a 1.5% increase in the total count, thanks to the approval of six new trust companies.
For more details regarding fiduciary services and company incorporation in Labuan, contact our specialist for assistance.