Credit Token License for ICO Business
With Blockchain technology rapidly being adopted, many existing companies need to be innovative and progressive in order to stay competitive. By adopting Blockchain technology, companies transit themselves from a centralized paradigm to a decentralized paradigm.
Businesses with huge client databases such as airlines, banks, finance-related entities, e-commerce, and telecommunication are thinking of creative ways to tokenize their businesses. They do that through the issuance of their own coin via an Initial Coin Offering (ICO). These coins create a platform to enhance their relationships with their customers. The coins can be distributed as incentives following purchases or as a stored value for future products or services.
For new start-ups with innovative and sound business models, that are related to or within the Blockchain and FinTech spaces, ICO is an increasingly popular method for them to raise funds. Business models such as token payment systems, mobile application credits, building a blockchain-based smartphone apps, smart contracts on real estate deals and blockchain-based data storages are some of the new breed business models in the Blockchain sphere. These models are ideally suited to use ICO to raise funds.
Labuan Jurisdiction offers Credit Token License to companies and entreprenuers who are tapping into the digital space involving blockchain. With this Credit Token License, companies can legally issue utility tokens via an Initial Coin Offering (ICO). These ICO coins are non-security tokens in nature. Some benefits of the usage of these tokens include:
1. Access to special facilities of the company or associated platforms
2. Discount entitlement on products
The Labuan Credit Token license for ICO also reduces the uncertainty that crypto investors may feel about the potential into these ICOs. What is important is that start ups who have the license will be able to operate knowing that they are not in violation of any laws. Thus, avoiding interrogations and shut downs by the respective regulatory bodies.
Crypto Exchanges licensed by Labuan FSA authority may also create ICO to raise funds and tokenise their business economy for their exchange. This will greatly increase liquidity in cryptocurrency exchanges.
Commercial Substance For Taxing Proof Your Labuan ICO Business!
Labuan Jusidiction is in a time zone that is similar to most of the countries within the Asia Pacific region. It is easily accessible and affordable. There are plenty of offices, staffs for recruitments, and available of legal professional for ICO companies to comply with CRS (common reporting system) and all other regulations.
ICO license holder is required to have an operational office in Labuan with minimum 2 staffs of annual spending of RM100,000. This is one of the licensing conditions. The ICO license holder may also opt to set up a marketing office anywhere in Malaysia.
11 KEY ADVANTAGES LABUAN COMPANY FOR ICO LICENSE
- Able to legalize your ICO with Credit Token License
- 100% foreign ownership, no need Malaysian local partners
- Tax only 3% based on Audited Report
- Zero Witholding Tax on Interest, Managemnet Fee, Royalty Fee, and Technical Fee
- No Stamp Duty and GST
- No Import Duty/ Sales/ Service Tax
- No Capital Gain Tax and Inheritance Tax
- No Tax on Dividends to Shareholders
- Able to access to more than 70 Malaysia Tax Treaty partners
- Eligible for 2 years renewal multiple entry work permits for expatriates working under their company to stay in Malaysia
- ICO investors can set Labuan Investment Holding to enjoy 0% tax
Eligibility To Apply for Credit Token License
- Current business with three (3) years business profitable track record, OR
a new start-up with the new business model within the FinTech/ Blockchain Technology frame intending to issue an ICO - Business model demonstrating tokenization economy
- Whitepaper
- Minimum proof of fund USD 100,000. Paid-up capital required: RM 300,000 after approval obtained
Approval timeline: Approx. 45-60 days. Yearly license fee: USD 13,000
How To Get Started
1. Documents collection and compilation
2. License application
45-60 days
3. Register Labuan Company
4. Set Up Physical Office & Bank Account in Labuan
We provide complete solutions for Labuan ICO License application:
- Advisory, crafting Business Plan, Operation System manuals, AMLA/ KYC frameworks and all other documents required by the relevant authorities
- Due diligence, preparation of all necessary documents for the application form submission to approval follow-up including arranging an interview with Labuan FSA (if any) and compliance officer qualifying
- Submission and supervise the application process
- Act as your liaison and contact point with Labuan FSA for all correspondence and arrange an interview (if any)
- Track the license approval and attend all queries from Labuan FSA
- Set up the right company structure after approval
- Compliance Operation Reporting
- Bank account set up onshore and offshore
- Operation office set up in Labuan
- Marketing office set up anywhere in Malaysia
Other Blockchain, Cryptocurrency and FinTech Related Labuan Licenses
Labuan Jurisdiction offers a wide range of licenses available to legalize and legitimize Blockchain and Cryptocurrency business models! For a general overview, please visit here.
Blockchain, Cryptocurrency and FinTech related licenses include:
- Labuan Crypto Exchange License
- Labuan Digital Banks and Labuan Digital Investment Banks
- Labuan Robo-Advisory Services
- Labuan FinTech Funds
- Labuan InsurTech
- E-Wallet Payment System
- Labuan Security Token Offering for Fund Raising
Different licensees have different eligibility and operational requirements. These Labuan Blockchain, Cryptocurrency and FinTech licenses may be able to enjoy preferential tax rate of 3% on net audited profits! As each project is unique, we encourage you to get in touch with us so that we can provide tailored advice and consultation.
Why Labuan Business Platform for your Credit Token License for ICO?
We are a full-fledged licensed Labuan Trust Company (Trust License No. LT 0034) with a highly experienced team of dedicated professionals handle all license applications. We provide complete “one-stop” solutions in pre-assess, meet, planning, structuring, establishment and corporate service for your Labuan ICO Business, ensuring you get a bespoke service that meets your insurance business needs as well as onwards operation.
Feel free to contact us at +60122889809 or send us an inquiry to [email protected] to check on your eligibility to apply for Credit Token License for ICO. ‘One Labuan’ Platform Labuan Platform is designed to elevate your Labuan operations efficiently!
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