Factoring

Factoring business means the business of acquiring debts to any person or institution at a discount or such other business as approved by The Authority.

 

Application Requirement

The submission should include, but is not restricted to, the following:

  1. A letter of undertaking from the head office / parent company to undertake any liability arising from the operations of its branch or subsidiary in Labuan.
  2. The controller, director or chief executive officer and the board of directors of the applicant company must be fit and proper persons. Prior written approval of the appointment must be obtained from Labuan FSA.
  3. A business plan detailing the operations and strategies of the applicant.
  4. Audited financial statements for the last two years, if applicable.
  5. Any other information that is relevant to the application.

 

Operational Requirement

The applicant company:

  1. has an option to either set up an office in Labuan or operate through its registered office. However all transactions must be done through Labuan and adequate and proper records and books of accounts must be maintained in Labuan
  2. must maintain capital sufficient to manage the company’s daily operations
  3. must transact business only in foreign currency and not deal in Malaysian Ringgit except for the purpose of defraying administrative and statutory expenses
  4. is prohibited from dealing with Malaysian residents other than those approved by the Bank Negara Malaysia
  5. must conduct its business with due diligence and sound principles and comply with the local laws and regulations where it services its clients
  6. indicate clearly its name on its letterhead, stationery and other documents
  7. must appoint an auditor
  8. is to submit to The Authority within three months after the close of each financial year, one copy of its audited annual balance sheet and profit and loss account
  9. is to provide statistics and information as required by The Authority in relation to prudential information, general business conduct and volume and direction of business in Labuan
  10. must notify The Authority of any change to its constituent documents, shareholdings, management or business plan
  11. any other requirements issued by The Authority from time to time

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