Labuan Foundation

Foundation is like a hybrid structure of a company and a trust

What is a foundation?

Can the objective of a Labuan Foundation be non-charitable?

The objectives of a Labuan Foundation can be charitable or non-charitable or both

Private Foundation

Corporate Foundation

Charitable Foundation

Types of foundation…

OR

OR

Charitable Foundation

You can establish a charitable foundation that typically offers financial support or other forms of assistance for a non-profit cause to the needy

Private Foundation

Private foundations are commonly used for 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

Corporate Foundation

A corporate foundation is a private foundation sponsored primarily by a profit-making company.

It is a way for companies to exercise their corporate social responsibilities

Why set-up a Foundation?

Foundation is a separate legal entity and will not be affected if its beneficiaries becomes insolvent

Why set-up a Foundation?

Why set-up a Foundation?

Foundations can be established to hold and distribute assets and businesses on behalf of its beneficiaries

Why set-up a Foundation?

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

Why set-up a Foundation?

Foundation is governed by its charter and articles of association and has the flexibility to change its structure anytime

Who can set-up a Labuan Foundation?

Any Malaysian or Non-Malaysian can set up a Labuan Foundation

Salient advantages of setting up a

Labuan Foundation

Create a Labuan Foundation as a protection to shield your assets…

Unenforceability of foreign judgement and claims…

Secrecy of information

There is no way for outsiders to access the information of a Labuan Foundation…

Unless, consent is granted by council member or officer

Tax exempted for distribution to beneficiaries…

Taxation only applicable if Labuan Foundation operates as a trading entity…

or perpetual…

Foundation life can be a fixed period

continuing from generation to generations…

Rights and Powers of 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”

You can re-domicile your Foundation in other jurisdictions

to Labuan

Labuan

If you have already have a foundation somewhere else, you can re-domicile it into Labuan…

Foundation in other

Jurisdictions

Re-domicile

You can also re-domicile your Labuan Foundation to other

offshore jurisdictions

Panama

BahamasIsle of Man

If you prefer your foundation to be governed by other jurisdictions, you can migrate it out from Labuan…

Contact us for more information…

www.chengcotrust.com

Cheng & Co Trust International LimitedTelephone: +603-79848988, Fax: +603-79844402Website: www.chengcotrust.com e-mail: info@chengcotrust.com

Labuan Office: Lot 2(a), Level 4, Wisma Lazenda, Jalan Kemajuan, PO Box 81840, 87000 Labuan FTKuala Lumpur Office: No 16-G, Jalan 2/114, Kuchai Business Centre, Off Jalan Klang Lama, 58200 Kuala Lumpur