How to Report Beneficial Ownership in Malaysia

Malaysia now requires companies to identify, record and report their beneficial owners.

For simple companies, this may mean identifying the individual shareholders behind the business.

For more public companies, you might need to trace your ownership through shareholder agreements. But don’t worry, our accounting firm will walk you through the process.

What Law Covers Beneficial Ownership Reporting in Malaysia?

Malaysia strengthened its beneficial ownership regime through the Companies (Amendment) Act 2024 [Act A1701], which amended the Companies Act 2016.

The new framework took effect on 1 April 2024 and introduced Division 8A, covering Sections 60A to 60E.

SSM has also issued updated beneficial ownership reporting guidelines to support the legislation.

Who Counts as a Beneficial Owner?

A beneficial owner must ultimately be a natural person, meaning an individual human rather than another company.

An individual may qualify if they:

• Hold directly or indirectly not less than 20% of the company’s shares.
• Hold directly or indirectly not less than 20% of its voting shares.
• Exercise ultimate effective control over the company.
• Have the right or power to appoint or remove directors who hold a majority of the voting rights at directors’ meetings.
• Are a member who, under an agreement with another member, alone controls a majority of the company’s voting rights.
• Hold less than 20% of shares or voting rights but still exercise significant control or influence over the company.

Note that a person holding only 10% or 15% could still qualify if they control important company decisions.

How Do You Identify the Beneficial Owner?

Companies should look at both legal ownership and actual control.

1) Review Direct Shareholders

Start with the company’s register of members and identify all shareholders.

For individual shareholders, check if their ownership or voting rights meet the relevant criteria.

For corporate shareholders, it’s still the same, find the individual behind it..

2) Trace Indirect Ownership

For example:

• Amir owns 70% of Holding Company A.
• Holding Company A owns 40% of Trading Company B.

Amir’s indirect interest in Trading Company B is: 70% × 40% = 28%

That exceeds the 20% ownership criterion, so he qualifies.

3) Check Who Actually Controls the Company

Companies should also review:

• Shareholders’ agreements
• Voting arrangements
• Nominee arrangements
• Trust structures
• Director appointment rights
• Management control

Someone with a smaller shareholding may still be a beneficial owner if they have effective control over the company.

What Information Must Be Collected?

Companies should obtain and verify the required particulars of each beneficial owner.

This may include:

• Full name
• Residential address
• Nationality
• Date of birth
• NRIC or passport details
• Contact details
• Date the person became a beneficial owner
• Nature of ownership or control
• Applicable BO criterion
• Percentage of ownership or voting rights

Companies should also retain records showing how the beneficial ownership conclusion was reached.

How Does a Company Obtain Beneficial Ownership Information?

Under Section 60C, companies can issue notices requiring members or other relevant persons to confirm if they are beneficial owners or provide information about the person who ultimately owns the interest.

For example, if Company Y owns 60% of Company X, Company X may need to ask who ultimately owns or controls Company Y.

Companies should keep copies of:

• Notices issued
• Responses received
• Supporting documents
• Follow-up attempts

A lack of response should not simply be ignored. Companies are expected to take reasonable steps to establish the true beneficial ownership position.

How Do You Report Beneficial Ownership to SSM?

Once the beneficial owner has been identified, the company should:

1. Record the information in its register of beneficial owners.
2. Keep supporting records.
3. Lodge the required information with SSM through e-BOS.
4. Update the information whenever ownership or control changes.

e-BOS is SSM’s electronic system for updating, lodging and rectifying beneficial ownership information.

Filing through e-BOS does not replace the company’s duty to maintain its own register.

How Quickly Must the Information Be Updated?

Beneficial ownership reporting is time-sensitive.

A commonly relevant deadline is 14 days for recording or lodging specified changes after the relevant information is obtained or entered into the register.

Companies should therefore avoid waiting until the annual return is due before reviewing beneficial ownership.

Companies should also review their beneficial ownership information regularly to ensure it remains accurate.

What If No Beneficial Owner Can Be Identified?

Some company structures may be difficult to trace.

Where no beneficial owner can be identified after reasonable steps have been taken, the framework may require information on the company’s senior management to be recorded or reported instead.

This should be treated as a fallback rather than a shortcut.

Companies should first trace ownership, issue the required notices and assess the relevant control criteria.

What Happens If a Company Fails to Comply?

Beneficial ownership reporting is a statutory compliance obligation.

Failure to comply with the requirements under Section 60B may expose the company and relevant officers to:

A fine of up to RM20,000 plus Up to RM500 per day for a continuing offence after conviction.

For example, if a continuing offence remains unresolved for another 30 days after conviction, the additional fine could potentially reach:

30 × RM500 = RM15,000

Companies should therefore avoid treating beneficial ownership reporting as purely an administrative task for the company secretary.

Directors, shareholders and beneficial owners may also need to cooperate by supplying accurate information.

How Is Beneficial Ownership Different From Bursa Shareholding Disclosure?

Beneficial ownership reporting should not be confused with substantial shareholding disclosure.

For SSM beneficial ownership reporting, the main ownership threshold is generally 20%, together with additional control tests.

For public companies, a person holding 5% or more of voting shares may generally fall within substantial shareholder disclosure requirements.

Bursa Malaysia’s listing rules also refer to the Companies Act beneficial ownership framework in certain securities placement situations.

For listed companies, SSM beneficial ownership requirements therefore sit alongside Bursa and securities disclosure obligations.

How Can Companies Stay Compliant?

A simple compliance checklist should include:

• Review direct and indirect shareholding.
• Trace corporate shareholders to individuals.
• Check voting and control rights.
• Review nominee and trust arrangements.
• Issue Section 60C notices where required.
• Maintain supporting records.
• Keep the beneficial ownership register updated.
• Lodge required information through e-BOS.
• Update records whenever ownership or control changes.
• Review beneficial ownership information regularly.

Conclusion on Beneficial Ownership on Malaysia

Beneficial ownership reporting in Malaysia is now an ongoing corporate compliance requirement.

Companies need to understand not only who appears as a shareholder, but who ultimately owns, controls or significantly influences the business. Keeping ownership records accurate and updating SSM promptly can help reduce compliance risks.

If your company needs help keeping its accounting, statutory and corporate records properly organised, Accounting.my supports Malaysian businesses with accounting services to help keep important records accurate and up to date

Sources

• Companies Commission of Malaysia, Companies (Amendment) Act 2024 and Beneficial Ownership Framework
• Companies Commission of Malaysia, Guidelines for the Reporting Framework for Beneficial Ownership of Companies
• Companies Commission of Malaysia, Companies (Access to the Register and Information Relating to Beneficial Ownership) Regulations 2025
• Companies Commission of Malaysia, Annual Report 2024
• Bursa Malaysia, Main Market Listing Requirements
• Securities Commission Malaysia, Reporting of Substantial Shareholding Regulations FAQ