Labuan Insurance License; a Labuan insurance business is any insurance business that is done in a foreign currency. This includes general, life, reinsurance, Labuan takaful and retakaful windows, and captive insurance.
Table of Contents
Labuan General Insurance Business
A Labuan general insurance business is any insurance business that isn’t life insurance. This includes accident, medical, surgical, and hospital expenses insurance.
Labuan Insurance License- Types of Licenses
- Captive insurance;
- Direct life/general insurance
- Reinsurance
- Insurance manager
- Underwriting manager
- Insurance broker.
Labuan Insurance License – How to apply?
Applicants must send in the forms that are right for the type of license they are trying to get. In general, the submission should include, but not be limited to, the following:
(a) The proposed company’s business plans.
(b) An official copy of the applicant company’s proposed Memorandum of Association and Articles of Association.
(c) Certified copies of any Board and general meeting decisions that give the applicant permission to apply for a license.
(d) A copy of the applicant’s three years’ worth of audited annual accounts.
(e) The corporate profile of the applicant, which includes: the name, place, and date of the applicant’s founding; the names, addresses, qualifications, and experience of the directors and officers in charge of running the applicant’s business as a whole; and the names and addresses of each member who owns 10% or more of the applicant’s voting shares.
(f) A statement from the applicant about the honesty of the people who are in charge of running the Labuan insurance entity.
FAQ – Labuan Insurance License
What is a Labuan insurance and business that deals with insurance?
A Labuan insurance business is any insurance business that is done in foreign currency. This includes life, general, reinsurance, captive insurance, insurance manager, underwriting manager, and insurance broking, but not domestic insurance business.
How do you set up an insurance company in the Labuan IBFC?
A person can apply for a license to sell Labuan insurance and do other things related to insurance in Labuan IBFC if they meet the following requirements:
Has a good record of financial success in the three years before the application;
Has the knowledge and skills (management skills) needed to run an insurance business and has the right number of employees;
Has a good business plan and no bad news from the regulatory bodies in their home countries or from financial journals, newspapers, or other reliable sources.
What is one thing a Labuan captive insurer is allowed to do for business?
With Labuan FSA’s approval, a Labuan captive insurer can take on direct insurance/reinsurance (general or life) business risks of their own group or third party risks.
What does “rent-a-captive” mean?
A rent-a-captive is a captive insurance company that can be used by multiple people, or “renters,” who don’t have voting control over the captive. Even though none of the rent-a-users captive’s will own it, each will get the business benefits of having a captive. The policyholder “rents” the captive facility’s capital, surplus, and license, and the captive facility usually offers administrative services, reinsurance, and/or an admitted fronting company.
Which types of insurance can a captive insurance company cover?
A Labuan captive insurance company can cover just about any kind of risk.
What is a company that protects cell business?
A labuan business can be set up as a protected cell business (PCC). A Labuan company that already exists can also be changed into a PCC. The PCC can group together into “cells.” A PCC’s cells can have: a core that holds non-cell assets or general assets; and any number of cells that are meant to keep the assets of each cell separate and safe.
Even though neither the core nor the individual cells are separate legal entities, each cell is legally set apart from the others and has enough qualities to do business on its own under the “umbrella” of the Labuan PCC. A Labuan PCC can be set up to do captive insurance or reinsurance based on either traditional or Islamic rules.
How are taxes on a Labuan PCC paid?
The tax rate is 3% of net profits that have been audited.
What tax consequences do the PCC cells have?
In the name of a Labuan PCC, the income of the cell(s) under the PCC is taxed as a whole.
What does it mean for taxes when the profits from a PCC are split among the cells?
The dividends that the cells get from the Labuan PCC are not taxed.
What laws govern the business of insurance and insurance-related companies in Labuan?
The Labuan Financial Services and Securities Act of 2010, the Labuan Islamic Financial Services and Securities Act of 2010, the Labuan Companies Act of 1990, and the Labuan Business Activity Tax Act of 1990 govern the insurance and insurance-related businesses in Labuan.
Conclusion – Labuan Insurance License
Labuan Insurance License; a Labuan insurance business is any insurance business that is done in a foreign currency. This includes general, life, reinsurance, Labuan takaful and retakaful windows, and captive insurance.