Types of Labuan Foundation you can Think of Opening

The Labuan is one of the most attractive land where foreign investors can look forward to starting their business activities without having to worry or stressed out much about the laws and rules of the Labuan jurisdiction. If you as a foreign investor is looking to have a system that could could work for both charitable or non-charitable cause then thinking of establishing a Labuan foundation is always a beneficial idea as it is run on a type of legal system through which the company's management can successfully run a Labuan foundation for a charitable cause or for a non-charitable cause. Now before you actually make up a decision of setting up a foundation in the Labuan, you should know the types of foundations you could establish in the Labuan. So read the article below and learn about two main types of the Labuan foundation.

Laban Foundation- Charitable Cause

Those who are new in forming a company in the Labuan or have already set up a company in the Labuan should know that forming a charitable foundation is absolutely executable as it is exempted for any tax implications. The jurisdiction of the Labuan gives liberty to investors and therefore doesn't allow the foreign investors to get stressed out for tax responsibilities on whatever they earn from the foundation's earned money or whatever they are getting on inheritance. The main purpose behind the charitable foundation is that it should work for one of the many charitable causes under the local legislation. For instance, it could work for education empowerment, for poverty causes, environment protection etc.

Labuan Foundation- Non- Charitable Cause

This type of foundation set up in the Labuan jurisdiction is mainly for the purpose of the wealth management purposes. This type of Labuan foundation for non-charitable purposes must be registered under the relevant authorities. The procedure is simple and the only way to do is to get the foundation registered with the Labuan financial Services Authority. The taxation policies regulated on the non-charitable foundation will be performed as per the rules of the Income Tax Act.

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