What is Labuan Foundation?

  • A Labuan Foundation (“LF”) is based on civil law structure and can be described as hybrid of a trust and corporation. It is tailor-made for high net worth individuals (HNWI), families as well as corporations and non-profit organisations who wish to have control over their assets and businesses whilst being accorded legal protection.
  • Establishment of LF for any lawful purpose which may be charitable or non-charitable.

Characteristics of Non-Charitable LF (Conventional or Islamic):

  • Endowment of properties can only be done by the founder and the person to whom he had assigned or transferred his rights, powers and obligations under the Labuan Foundations Act 2010 (referred to as “the assignee”). In this regard, a non-charitable foundation is not permitted to receive donations from third parties or the public.

Characteristics of Charitable Labuan Foundation (Conventional or Islamic):


Not permitted to receive donations from third parties or the public


Allowed to solicit public donations

Charitable purpose means and includes any of the following description of purposes:

  • The prevention and relief of poverty
  • The advancement of religion, profession, or education
  • The advancement of health including the prevention and relief of sickness, disease, or of human suffering
  • Social and community advancement including the care, support and protection of the aged, people with a disability, children, and young people
  • The advancement of culture, arts, and heritage
  • The advancement of amateur sport, which promotes health by involving physical or mental exertion
  • The promotion of human rights, conflict resolution, and reconciliation
  • The advancement of environmental protection and improvement
  • The advancement of animal welfare
  • The advancement of facilities for recreation or other leisure-time occupation in the interest of social welfare