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Regulations & Policies

Rules on the establishment, approval and supervision of captive insurers

Labuan Captive Regulation: LFSSA Part VII, RM300,000 Capital and the 3% Tax Election

Labuan captives are licensed under Part VII of the Labuan Financial Services and Securities Act 2010, with section 101 defining captive business and section 102(1) requiring a Labuan FSA licence. The regime expressly permits pure, group and association captives, three rent-a-captive variants and protected cell companies. Minimum capital is RM300,000 for related and associate corporations and RM500,000 for other insureds, and Labuan trading profits are taxed at 3% under the Labuan Business Activity Tax Act 1990, with an irrevocable election available to be taxed under the Income Tax Act 1967.

2026-10-24

Author：Administrator