What is beneficial ownership reporting for Malaysian companies?
Since the Companies (Amendment) Act 2024 (in force 1 April 2024), every Malaysian company must identify the natural persons who ultimately own or control it, keep a beneficial owner register and notify SSM of the information and later changes. A beneficial owner can be someone with ultimate effective control, not only a shareholder.
The Companies (Amendment) Act 2024 added Division 8A to the Companies Act 2016 (ss.60A-60D). Most of the Amendment Act came into force on 1 April 2024.
Key rules
- A beneficial owner is a natural person who ultimately owns or controls the company, including someone with ultimate effective control (s.60A).
- Every company must keep a beneficial ownership register at its registered office or another notified place in Malaysia (s.60B). It records the owner's name, address, nationality, ID, residence, and the dates they became or ceased to be a beneficial owner.
- The company must tell SSM of changes within 14 days of recording them.
- Information on former beneficial owners must be kept for seven years.
- Companies can require members and others to disclose beneficial owners (s.60C), and beneficial owners must notify the company (s.60D).
- SSM's Practice Directive 9/2024 says the framework gives no exemption to any class of companies, although the Minister may exempt a class by order (s.60E).
SSM's guideline sets criteria for identifying owners in a company limited by shares, such as 20% or more of shares or votes, or control over appointing a majority of directors. Check the current SSM guideline for full wording.
Legal basis
- Companies Act 2016, s.60A
- Companies Act 2016, s.60B
- Companies Act 2016, s.60C
- Companies Act 2016, s.60D
Sources
Applies to From 1 April 2024 · 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
- What does a company secretary do for a Sdn Bhd?A company secretary looks after the company's statutory compliance: keeping statutory registers, lodging forms with SSM on time, preparing notices and minutes of meetings, and advising directors on their Companies Act duties. They do not replace the directors, who remain responsible for the company.
- What statutory registers must a Malaysian company keep?At least a register of members, a register of directors, secretaries and managers, and a register of beneficial owners; companies that issue debentures also need a debenture register. Registers are usually kept at the registered office and must be updated promptly. The Act also expects records of meetings and financial records.
- Does a private company in Malaysia have to hold an AGM?No. The Companies Act 2016 requires only public companies to hold an annual general meeting, within six months of the financial year end. A private company does not need an AGM, but it must still circulate its financial statements to members within six months and lodge them with SSM.
- What business structure should I choose in Malaysia: sole proprietorship, partnership, LLP or Sdn Bhd?Pick based on liability, who owns it and how credible you need to look. A sole proprietorship or partnership is cheapest but the owners are personally liable; an LLP or a Sdn Bhd gives a separate legal entity. A Sdn Bhd is the usual choice once you hire staff, sign larger contracts or bring in investors.
- What is the difference between a sole proprietorship and a Sdn Bhd in Malaysia?A sole proprietorship is not a separate legal person, so you are personally liable for all business debts. A Sdn Bhd is its own legal person and shareholders are generally liable only for unpaid share capital. A Sdn Bhd costs more to set up and carries more yearly filing duties.