Can a Labuan offshore company deal with a resident?
Generally no but an exemption was recently given allowing a Labuan offshore company to deal with a resident provided i) the LOC send notice (in a prescribed form) to LOFSA not later than 10 days from the date of transaction with the non-resident took place, and ii) the transaction undertaken by the LOC and the resident (where applicable) has obtained necessary approval from relevant domestic regulatory authorities like BNM, SEC, FIC, etc. The notice should at least specify a) s of the transaction/investment, b) the rationale and advantage of the transaction using an LOC including tax benefits, etc, and c) total amount and source of funding in the transaction or investment.
