Brokerage services license in Labuan: how to obtain it

Nikita Veremeev

09.11.2025 | 6 min read

Updated: 09.11.2025

In 2024 the global market for brokerage services is showing unprecedented growth: according to international research, the volume of global trading operations in the foreign exchange and money markets exceeded $7 trillion per day, and the number of newly licensed brokers over the past three years has increased by more than 40%. At the same time, behind these figures lies a different reality: only a few companies are able to reach an international level while complying with strict regulatory requirements and ensuring transparency of operations. Why is that? The answer lies in choosing the right jurisdiction and a sound licensing strategy.

Labuan – a Malaysian offshore zone, which in recent years has become one of the most sought-after centers for registering brokerage companies targeting the international markets of Europe and Asia. But the path to obtaining a Labuan broker license (Labuan broker license) is not as simple as it may seem at first glance: here not only formal criteria are important, but also a deep understanding of the specifics of regulation, corporate governance and compliance.

In this article I will examine in detail how the COREDO team implements projects to obtain Labuan brokerage licenses, what key requirements and stages the procedure involves, and why a strategic approach to licensing becomes critically important for successfully scaling the business. If you are looking not just for an overview but for a practical guide and a source of strategic ideas – I recommend reading to the end. Here you will find answers to the questions that truly concern entrepreneurs and executives planning to enter international markets.

Brokerage Services License in Labuan — Why It’s Needed

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The Labuan brokerage license (Money Broking License) is an authorization issued by the Labuan Financial Services Authority (Labuan FSA) that allows providing brokerage services in the foreign exchange and money markets, as well as acting as an intermediary between buyers and sellers of financial instruments. It is important to understand: the Labuan brokerage license does not grant the right to act as a principal in transactions; activities are limited exclusively to intermediation, which reduces regulatory risks and simplifies transaction oversight.

The Labuan FSA brokerage license covers a wide range of services, including forex brokerage, derivatives operations, and transaction support on international financial markets. Special attention is paid to integration with global payment systems, which makes Labuan an attractive jurisdiction for FinTech and cryptocurrency projects.

The advantages of licensing in Labuan for international brokers are clear:

Flexible regulatory environment: Malaysia’s financial regulation combines transparency with opportunities for innovation.
Integration with international financial markets: the Labuan license is recognized in key Asian and European jurisdictions.
Tax burden optimization: Labuan corporate law provides preferential tax regimes for international companies.
High level of risk control: the Labuan FSA provides strict financial supervision and risk control, which increases trust from partners and clients.

COREDO’s practice confirms: obtaining a license for a Labuan broker becomes a strategic tool for companies seeking international presence and sustainable development in the face of rapidly changing regulatory requirements.

How to obtain a brokerage license in Labuan

Illustration for the section 'How to obtain a brokerage license in Labuan' in the article 'Obtaining a license for brokerage services in Labuan'
Obtaining a brokerage license in Labuan: this is a process that requires strict compliance with the requirements of the local financial regulator, including choosing a corporate structure, selecting qualified directors, and establishing a local presence. Below we will examine in detail the requirements for the company structure to successfully obtain a license.

Requirements for the company structure

To register a company in Labuan for brokerage activities, the legal form Labuan Business Company (LBC) is used. The optimal structure includes at least one shareholder and two directors, with at least one director required to be a resident of Malaysia. This approach ensures compliance with Labuan FSA requirements for corporate governance and shareholder structure.

Key points:

Residency and qualification of directors: one of the directors must be a resident, and work experience in the financial sector must be at least three years.
company registration and the role of the registered agent: the registered agent provides a legal address, maintains corporate documentation, and liaises with the regulator.
Local office in Labuan: having a physical office and at least one resident employee is a mandatory requirement to confirm the company’s real presence in the jurisdiction.

Implementing these requirements in practice often raises questions for entrepreneurs. The solution developed by COREDO includes comprehensive support in selecting and appointing resident directors, as well as organizing a local office tailored to the client’s business specifics.

Financial requirements for the business

The minimum paid-up capital for a Labuan license is RM500,000 (approximately $125,000). These funds must be deposited in a bank account in Malaysia or Labuan before filing the license application. In addition, Labuan FSA requires a refundable deposit and payment of government fees, the amount of which depends on the volume of the proposed operations.

Financial reporting and audit: another important aspect. The company must annually submit financial statements certified by an approved auditor, and also store documents in Labuan. The COREDO team supports clients at all stages of interaction with auditors and helps establish a transparent internal control system.

Personnel and compliance requirements

The qualification of managers is a critical factor for successfully obtaining a license. Labuan FSA imposes strict requirements: managers and directors must have confirmed at least three years of work experience in the financial sector, as well as an impeccable business reputation.

The staffing structure must include an AML specialist responsible for implementing and ensuring compliance with anti-money laundering (AML/CFT) procedures. Implementing effective compliance procedures and a risk control system is a key element of the long-term sustainability of the business.

COREDO’s experience shows that a proactive approach to compliance minimizes regulatory risks and enables successful Labuan FSA inspections.

Thus, careful compliance with qualification and compliance requirements is the first step on the way to obtaining a broker license in Labuan.

How to obtain a broker license in Labuan

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Obtaining a broker license in Labuan is a step-by-step process that requires strict compliance with local requirements for corporate structure, capital, and internal procedures. To successfully go through Licensing, it is necessary to carefully prepare the documents and develop a business plan that meets the regulator’s expectations.

Create a business plan and prepare documents

The first stage is collecting and preparing the document package. Required:

the company’s founding documents,
a business plan for the Labuan broker license with a detailed description of the business model, target markets, financial forecasts and risk management system,
evidence of the qualifications and experience of directors and managers,
information on the shareholder structure,
documents confirming the presence of authorized capital and a local office.

All documents must be notarized and, if necessary, translated into English. COREDO’s practice shows that thorough preparation of the business plan and internal control system significantly increases the chances of rapid approval of the application.

How to submit an application to Labuan FSA

The application is submitted through an accredited registration agent, who ensures correct preparation and timely submission of documents. Labuan FSA reviews the application within 1–2 months, although the timing may vary depending on the complexity of the structure and the completeness of the information provided.

At this stage it is critical to respond promptly to regulator requests and provide additional clarifications.

The COREDO team has carried out several projects in which competent communication with Labuan FSA minimized delays and avoided additional checks.

Obtaining the license and starting operations
After receiving provisional approval, it is necessary to confirm the placement of the authorized capital, the existence of a local office, and compliance with all company structure requirements. Only then is the license issued and the registration in the official register of Labuan brokerage companies takes place.

It is important to remember: the Money Broking License in Labuan prohibits the company from acting as a principal in transactions: only intermediary activities are allowed. This restriction reduces the level of regulatory risk but requires strict compliance with all procedures and reporting to Labuan FSA.

Features of licensing brokerage services in Labuan

Illustration for the section «Features of licensing brokerage services in Labuan» in the article «Obtaining a license for brokerage services in Labuan»

licensing features of brokerage services in Labuan impose strict requirements on corporate structure, infrastructure and compliance, which distinguish this center from other jurisdictions. Successful obtaining and maintenance of a license is only possible with the implementation of well-thought-out anti-money laundering (AML) systems and effective operational risk management.

It is these key aspects that the LFSA regulator pays special attention to, requiring companies not only to formally comply with the rules but also to truly integrate supervisory and control procedures into the broker’s daily activities.

AML and risk control
Key AML requirements for brokerage firms in Labuan include:

mandatory appointment of a qualified AML officer,
implementation of an internal client identification policy (KYC),
regular updates of compliance and risk control procedures,
maintaining reporting on suspicious transactions and cooperating with Labuan FSA when incidents are detected.

COREDO’s experience shows: implementing automated transaction monitoring systems and training staff are key to successfully passing regulator checks and inspections.

Regulation of crypto-broker services
Licensing of financial technologies (FinTech) and crypto-brokers in Labuan is distinguished by enhanced requirements for security systems, data storage and processing, as well as reporting on cryptocurrency transactions. Labuan FSA requires separate approval of the business model and the implementation of additional risk control procedures.

The COREDO team has experience supporting projects for licensing cryptocurrency brokers, where special attention was paid to integration with international standards and building an internal audit system.

Thus, our expertise enables structuring licensing processes, minimizing regulatory risks and ensuring operational transparency. Let’s move on to audit and reporting matters.

Audit and reporting

An annual audit by an approved auditor: a mandatory requirement for all brokerage companies in Labuan. Financial statements must be prepared in accordance with international standards and kept within the jurisdiction. Special attention is paid to the transparency of operations and the timely submission of data to the regulator.

Solutions developed by COREDO allow building an effective internal control system and automating reporting processes, which minimizes the risk of regulatory sanctions.

COREDO has developed solutions that ensure compliance with jurisdictional requirements and increase the transparency of company activities, which is important for successful operations in Labuan.

Let’s proceed to review the costs and timelines for renewing a broker license in Labuan.

Cost and timelines for renewing a broker license in Labuan

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The costs of company registration and obtaining a Labuan broker license consist of several components:

government fees (fixed and annual),
refundable deposit,
payment for registered agent services,
costs of setting up a local office and hiring staff,
payment for auditor services.

The timeframe for obtaining a Labuan broker license typically ranges from 2 to 3 months, provided documents are properly prepared and there is prompt interaction with the regulator.

Renewing a Labuan broker license requires annual confirmation of compliance with all requirements, timely submission of reports and payment of fees. Violations of the rules can result in fines, suspension, or revocation of the license.

COREDO’s practice shows that regular audits and proactive compliance not only help avoid sanctions but also increase trust from partners and clients.

Practical recommendations for entrepreneurs

Choosing a registration agent and setting up a local office: A reliable agent is the key to proper interaction with Labuan FSA and successful registration. The COREDO team supports clients at all stages, including selection of office and staff.
Strategic planning and business scaling: broker license Labuan opens opportunities to enter the Asian and European markets, integrate with international financial systems and scale the business. It is important to develop the business plan and company structure in advance taking into account the regulator’s requirements.
Assessing ROI and minimizing risks: Key metrics, speed to market, cost of the Labuan broker license, tax burden and compliance expenses. COREDO solutions enable optimization of the cost structure and improve return on investment.
Compliance with international standards: Implementation of effective AML/compliance procedures, regular audits and transparency in corporate governance: the foundation for long-term success and minimization of legal risks.
Summary of main requirements and stages: Successfully obtaining a Labuan broker services license requires a comprehensive approach to preparing documents, building the company structure and establishing an internal control system.

Comparison of requirements for obtaining a license

Stage/Requirement	Description	Key points
Organizational and legal form	Labuan Business Company	At least 1 shareholder, 2 directors
Authorized capital	RM500,000 (~125,000 USD)	Deposit in a bank in Malaysia or Labuan
Local office	Required, with a registered agent	At least 1 resident employee
Documents	Incorporation documents, business plan, financial statements	Notarization, translation
Application procedure	Submission through an agent, review up to 2 months	Interaction with Labuan FSA
Compliance and AML	implementation of AML procedures, appointment of an AML officer	Compliance with international standards
Audit and reporting	Annual audit, document retention	Approved auditor, reporting
License renewal	Maintaining compliance with requirements	Submitting a renewal application, payment of fees

In conclusion: COREDO’s experience shows that obtaining a Labuan broker license is not merely a formal procedure but a strategic project requiring a deep understanding of regulatory requirements, sound planning, and professional support at every stage. This approach ensures not only a successful entry into international markets, but also the long-term resilience of the business in the face of global competition.

Obtaining a brokerage services license in Labuan