When it comes to setting up a brokerage, picking the right spot is crucial. Obtaining a Labuan Brokerage License, a rising star in the financial world, offers some compelling reasons to set up shop. Let’s delve into what makes Labuan an attractive option for your brokerage firm. Do not hesitate to contact us for more information at connect@swissfintechpro.com
Labuan isn’t just another financial hub; it’s a standout choice for several reasons.
Obtaining a Labuan Brokerage License will cost you only around $40,500 in professional fees, with additional government fees of about $2,700.
| Sr. No. | Particulars | Fees USD | ||
| 1. | Professional and Legal Fees Which includes Collation, preparation, review and filing of Securities Dealer License application documents, assistance with initial set up and organization of the licensee review of business plan and liaising with regulator and other service providers. | 33,000 | ||
| 3. | Corporate Secretary | 3,500 | ||
| 4. | Set-up for a Labuan Domestic Company inclusive of government fees | 1,500 | ||
| 5. | Bank account opening | 2,500 | ||
| TOTAL PROFESSIONAL FEES | 40,500 | |||
| TOTAL COSTS | 2,700 | |||
| 5. | Government Fees – Set up of a Domestic Company – 800 USD | |||
| 6. | Government Fees – Application Fee Securities Dealer License Application Fees – 375 USD | |||
| 7. | Government Fees – License Fee Securities Dealer License Fees – USD 1,525
| |||
| TOTAL: | 43,200 |
Keep in mind the capital requirement of $32,500 and
Annual Insurance
Annual insurance costs of approximately $3,000.
Timeline
You could be up and running in around 5 months.
They are reasonably modest at $2,550, covering office space and a small team.
From the Second Year:
Annual Costs: The yearly expenses come to about $12,500, covering everything from renewals to insurance.
Monthly expenses
They are reasonably modest at $2,550, covering office space and a small team
Let’s compare Labuan with another popular option, Seychelles.
Setup and Operational Costs: Labuan emerges as the more budget-friendly option, with significantly lower setup and ongoing costs.
By going Labuan, you will save around.
Labuan isn’t just another financial jurisdiction; it’s a strategic choice for those looking to maximize profitability and growth potential. It combines regulatory ease, tax advantages, strategic positioning, confidentiality, and cost-effectiveness.
Q: How long does it take to get a Labuan brokerage license?
A: Around 5 months.
Q: Any other costs to consider?
A: Don’t forget the capital requirement and annual insurance.
Q: Can I manage compliance on my own in Labuan?
A: Labuan stands out as one of the few jurisdictions where hiring a local compliance officer isn’t a necessity. This unique feature allows you the flexibility to manage your own compliance processes. What this means for your brokerage firm is a more streamlined and efficient client onboarding experience, especially for high-risk clients. You could onboard these clients first and complete the required compliance paperwork subsequently. However, it’s crucial to note that we still strongly recommend adhering to all documentary requirements to ensure full compliance and preparedness for any regulatory reviews.
Q: Any other costs to consider?
A: Don’t forget the capital requirement and annual insurance.
Choosing Labuan for your brokerage firm is more than a financial decision; it’s a strategic move towards greater profitability and market expansion. If you’re ready to embark on this journey, we’re here to help you navigate the process. Get in touch to start your Labuan adventure! Do not hesitate to contact us for more information at connect@swissfintechpro.com
