Open a Malaysian Foundation
Learn how a foundation can be registered in Malaysia, how it is funded and what it can be used for, then contact our team for help with incorporation.
Ready to start your foundation in Malaysia? Explore the following information and then reach out to our experts in company formation in Malaysia for support. You can access our online services today.
| Quick Facts | |
|---|---|
| Structure of a foundation in Malaysia | Company Limited by Guarantee |
Fields in which a foundation can activate | – education, – health, – science, – religion, and other social sectors |
Incorporation steps of a foundation in Malaysia | – naming a director who can also be the founder, – creating an application letter with the purpose of the foundation, and a draft copy of the constitution papers |
| Financial contribution | RM 1 million |
| What institution issues the approvals? | Companies Commission of Malaysia (SSM) |
| Specific trading name | Must comprise words like “foundation” or “institute” |
| Tax exemption applicable (YES/NO) | YES |
| Collecting money from the public (YES/NO) | YES |
| Charitable events through a Malaysian foundation (YES/NO) | YES |
| Property purchase for foundations in Malaysia | Restricted |
| Holding properties through a Malaysian foundation | Only if a license is issued for this. |
| Applicable legislation for foundations in Labuan | Labuan Foundations Act 2010 (Islamic foundations: Labuan Islamic Financial Services and Securities Act 2010) |
| Documents provided by donors of Malaysian foundation | Statutory Declaration comprising information about the sum of money donated |
| Costs for opening a foundation in Malaysia | SSM incorporation fee of RM 3,000 for a company limited by guarantee, plus professional fees |
| Services offered by our Malaysian agents | – support in drafting the foundation documents, – registration with the relevant authorities and agencies, – assistance in varied procedures, – administrative assistance |
How is a foundation known in Malaysia?
- Yayasan, or trust.
- Philanthropic foundation,
- Charity.
What is the status of a foundation in Malaysia?
Non-profit entity.
What is the purpose of a foundation in Malaysia?
To raise funds and direct them to specific social causes, ex:
- Education,
- Culture & arts,
- Religion,
- Community-focused (specific regions of Malaysia, for instance), etc.
You may explore this infographic with information about foundations in Malaysia:
Is a minimum share capital required for a foundation in Malaysia?
No.
The following video offers a short presentation on the Malaysian foundation:
Who approves foundations in Malaysia?
- Companies Commission of Malaysia – SSM,
- Registrar of Societies,
- Legal Affairs Division,
- Other Malaysian ministries/authorities.
What is the optimal business structure for a foundation in Malaysia?
- Company limited by guarantee – CLBG,
- Incorporated trustees.
DID YOU KNOW? There is also the possibility to register a Labuan foundation that has individual legal personality and can be used mostly for international wealth management.
What are the general steps in opening a foundation in Malaysia?
- choose the optimal business structure for your foundation in Malaysia,
- ensure a registered business office for your charity in Malaysia,
- create the trust deed or constitutional documents,
- open a bank account in Malaysia,
- register/apply with the Inland Revenue Board in Malaysia to issue tax-deductible bills,
- ensure effective accounting (we can put you in contact with our team of accountants in Malaysia),
- get the public fundraising permits,
- appoint the secretary and the treasurer,
- the foundation needs to have a president,
- submit the application with SSM and other authorities for approvals.
IMPORTANT NOTE: These are the general steps in registering a foundation in Malaysia. Each project is unique and deserves special attention, which is why we direct you to our specialists in company formation in Malaysia for personalized assistance.
Is a non-profit entity needed for a one-off fundraiser in Malaysia?
No need; instead, you can collaborate with an already incorporated charity/foundation in Malaysia.
What is the optimal structure for a commercial organization with a social mission in Malaysia?
The company limited by guarantee.
Can a foundation in Malaysia have foreign staff?
Yes, but it is important to observe the residency rules in Malaysia.
What are the costs for opening a foundation in Malaysia?
Around RM 3,000 – RM 5,000 as a registration fee with SSM, plus secretarial costs if the foundation is a company limited by guarantee.
Are annual returns and audited reports required for a foundation in Malaysia?
Yes.
Would you like to learn more about setting up a foundation in Malaysia? Get your answers today by contacting our agents for company incorporation in Malaysia.
Krithiga Anantha Rao, CPA · 2 October 2026Krithiga is a Licensed Corporate Secretary & Chartered Accountant with KASB Chartered Accountants.