Does a foreign-owned Malaysian company have different accounting requirements?
No. A Malaysian company with foreign shareholders follows the same Companies Act and tax record-keeping rules as any other. You may need extra reporting for your parent company, but it is separate from the statutory accounts filed in Malaysia.
Foreign ownership does not change the basics.
Same as local companies
- Keep records under section 245, accessible to the directors, with entries made within 60 days
- Retain them for seven years
- Prepare financial statements under MPERS or MFRS (or MFRS if the foreign parent or a regulator requires it)
- Circulate and lodge them on time, plus the annual return
Points to plan for
- Group reporting: the parent may need IFRS or a different year end or currency; keep a reconciliation between Malaysian statutory numbers and group numbers
- Currency: ringgit is the usual base currency; foreign currency transactions are translated under the standard, with exchange gains and losses recorded
- Year end: aligning with the parent is allowed, but see the rules on changing it
- Records access: directors in Malaysia should have access, even if the finance team sits overseas; overseas records of Malaysian operations still need to be available in Malaysia
- Language: books should be in English or Malay
- Intercompany balances and transfer pricing: document them clearly
The tax treatment is covered in the foreign-owner pages of the tax section.
Legal basis
- Companies Act 2016, s.245
- Companies Act 2016, s.248
Sources
Applies to 2026 · Last reviewed 29 October 2026
General information for business owners, not legal, tax or professional advice. Rules change, so check the sources or ask a licensed professional before you act.
Related questions
- In what language must accounting records be kept in Malaysia?Books and records should be in Malay or English. If original documents are in another language, such as Chinese, keep them, and expect to provide a written translation at the company's cost if LHDN asks. Financial statements lodged with SSM need a certified translation if not in Malay or English.
- Where must a company keep its accounting records, and can they be kept abroad?Records must be kept at the registered office or another place the directors choose, and the directors must be able to inspect them at all times. Records of overseas operations may be kept abroad, but must be sent to Malaysia and be available to directors.
- What is the difference between bookkeeping and accounting in Malaysia?Bookkeeping is the day-to-day recording of transactions: sales, purchases, payments and receipts. Accounting uses those records to prepare financial statements, interpret results and support decisions and tax filing. Good bookkeeping comes first, because accounts can only be as reliable as the entries beneath them.
- Is a Sdn Bhd legally required to keep accounting records?Yes. Section 245 of the Companies Act 2016 requires every company, including its directors and managers, to keep accounting and other records that explain its transactions and financial position. This applies even to a new, dormant or loss-making company.
- How long must a Malaysian company keep its accounting records?A company must keep accounting records for seven years after the transactions they record were completed. For tax, documents must be kept for seven years from the end of the relevant year of assessment. Use whichever period ends later.