Introduction to Labuan foundation

Introduction to Labuan foundation

• 1.
  Labuan Foundation 
• 2.
  What is afoundation? Foundation is like a hybrid structure of a company and a trust
• 3.
  Can the objectiveof a Labuan Foundation be non-charitable? The objectives of a Labuan Foundation can be charitable or non-charitable or both
• 4.
  Types of foundation… CharitableFoundation OR Private Foundation OR Corporate Foundation
• 5.
  Charitable Foundation You canestablish a charitable foundation that typically offers financial support or other forms of assistance for a non-profit cause to the needy
• 6.
  Private Foundation Private foundations are commonly usedfor 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
• 7.
  Corporate Foundation A corporatefoundation is a private foundation sponsored primarily by a profit-making company. It is a way for companies to exercise their corporate social responsibilities
• 8.
  Why set-up aFoundation?
• 9.
  Why set-up aFoundation?  Foundation is a separate legal entity and will not be affected if its beneficiaries becomes insolvent
• 10.
  Why set-up aFoundation?  Foundations can be established to hold and distribute assets and businesses on behalf of its beneficiaries
• 11.
  Why set-up aFoundation?  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
• 12.
  Why set-up aFoundation?  Foundation is governed by its charter and articles of association and has the flexibility to change its structure anytime
• 13.
  Who can set-upa Labuan Foundation? Any Malaysian or Non-Malaysian can set up a Labuan Foundation
• 14.
  Salient advantages of settingup a Labuan Foundation 
• 15.
  Create a LabuanFoundation as a protection to shield your assets… Unenforceability of foreign judgement and claims…
• 16.
  Secrecy of information Thereis no way for outsiders to access the information of a Labuan Foundation… Unless, consent is granted by council member or officer
• 17.
  Tax exempted fordistribution to beneficiaries… Taxation only applicable if Labuan Foundation operates as a trading entity…
• 18.
  Foundation life can bea fixed period or perpetual… continuing from generation to generations…
• 19.
  Rights and Powersof 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”
• 20.
  You can re-domicileyour Foundation in other jurisdictions to Labuan If you have already have a foundation somewhere else, you can re-domicile it into Labuan… Foundation in other Jurisdictions Re-domicile Labuan
• 21.
  You can alsore-domicile your Labuan Foundation to other offshore jurisdictions If you prefer your foundation to be governed by other jurisdictions, you can migrate it out from Labuan… Panama Isle of Man Bahamas
• 22.
  Contact us formore information… Cheng & Co Trust International Limited Telephone: +603-79848988, Fax: +603-79844402 Website: www.chengcotrust.com e-mail: info@chengcotrust.com Labuan Office: Lot 2(a), Level 4, Wisma Lazenda, Jalan Kemajuan, PO Box 81840, 87000 Labuan FT Kuala Lumpur Office: No 16-G, Jalan 2/114, Kuchai Business Centre, Off Jalan Klang Lama, 58200 Kuala Lumpur www.chengcotrust.com 