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.
Section 245 sets out three rules:
- Location: at the registered office or any other place the directors think fit, such as an accountant's office or a secure cloud account
- Access: directors must be able to inspect them at any time, so you cannot hold them back from a director
- Overseas operations: if the company has operations outside Malaysia, the records for those operations can be kept overseas, but returns that sufficiently show the position must be sent to Malaysia and kept there
The Registrar can also require records kept abroad to be produced in Malaysia, or prescribe the form of records kept in Malaysia.
For a company whose bookkeeper or accountant holds the records:
- Make sure a copy remains accessible to the directors
- Do not let the provider hold your records as leverage during a dispute; keep your own backup
- Foreign-owned companies whose group finance team sits abroad should still keep a full set accessible in Malaysia
A court can also let an approved company auditor inspect records on behalf of a director who asks.
Legal basis
- Companies Act 2016, s.245(4)-(8)
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.
- 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.
- What documents should a Malaysian company keep for bookkeeping?Keep every document that proves a transaction: sales and purchase invoices, receipts, bank statements, contracts, payroll records, and records of assets and loans. If a transaction is not supported by a document, it is hard to defend in an audit or tax review.